This article addresses the characteristics, pros, and cons of graded bullion coins. It will conclude with a verdict as to whether graded bullion coins are wise investments or just novelty items.

This is the third part in a 3-part series that addresses: 1) bullion coins and bars 2) collectible coins 3) graded bullion coins.

As I described in Part I of this series, the term “bullion” generally refers to coins or bars whose value is linked to the spot price. The graded bullion coins carry a higher premium, because their condition is verified by a third-party grader.

Graded bullion coins have grown in popularity over recent decades. The emergence of the top coin grading agencies, the Numismatic Guarantee Corporation and the National Coin Grading Service, have played a central part in the growth of this market. The most popular graded bullion coins in the USA are the coins that are minted by the United States Mint, such as the Eagles and the Buffaloes.

Dealers use a combination of three factors to justify the higher premium of graded bullion: 1) the high grade of 70 or 69 by a top grading agency; 2) whether the coins are a First Strike; 3) a signature on the label of the coin by a well-known politician or coin designer.

High Grading Scale

As I mentioned in Part 2 of this series, the highest grade on the Sheldon Scale is 70. Most of the newly minted Brilliant Uncirculated coins will come back a perfect 70. However, a lower percentage of them will grade at perfect 70 than collector coins like the Proof (PF) coins or the commemorative coins. There is greater effort to perfect collector coins like the 2009 Ultra High Relief coin, which is a collectible. There is a legitimate claim that modern bullion coins in a perfect Mint State 70 are lower in number than the commemorative coins. Graded bullion can be a wise investment.

Early Strikes

Dealers charge a higher premium for bullion coins when there is something distinct that might make the coin more valuable upon its release. A coin might be a “First Strike” or “Early Strike”, meaning that it was sent over to a third-party grader, like NGC, within the first 30 days of its release. A 2019 Gold American Eagle MS70 is listed at $2106 and the First Strike for that year is listed at $2181. The MS70 Gold Eagle for the year 2020 is at $2106 and the First Strike is at $2356.

Signatures

Coins with the signature of well-know engravers and politicians on their label can increase the asking price. The key here is to verify the value of the coin with a reliable source like The Official Red Book or the PCGS Price Guide. For example, PCGS has the 2016 Gold American Eagle (30th Anniversary) with a Mint State 70 grade valued at $2,485. They have that same coin with the signature of former Mint Director Ed Moy on the label at $6,100. Unless the value can be verified by a third-party like PCGS or NGC, you might want to hold off on signed bullion coins with a high premium.

Availability

Modern bullion coins with a high grade are highly available, especially in the year they are issued. Today’s technological advances in the minting process yields a much higher frequency of perfect coins. Furthermore, the coins are never circulated like the pre-1933 coins that were actually used as money. Additionally, many coins are shipped directly to the grader, which cuts down the chance of damage to the coin. They are not considered rare, however the years that have a low mintage will sell at a higher price.

Profit Potential

The graded bullion coins can have very strong profit potential. This is largely contingent on the mintage figures. For example, the 1996 $50 Gold American Eagle had a mintage of only 189,148 coins. PCGS has the asking price of that coin with a MS70 grade at $11,500. In contrast, there were 1,468,530 $50 Gold American Eagles minted for the year 1998. The PCGS Price Guide has that coin listed at only $2,617.

High premiums

Graded bullion coins come with a premium significantly higher than ungraded bullion coins. Currently the PCGS Price Guide has the 2022 $50 Gold American Eagle MS70 trading at $2,600. The 2022 Gold Eagle is the first full year for the new Jennie Norris reverse design. Two thousand six hundred dollars is currently a 54% markup beyond the spot price of $1,682. When the 2023 Gold Eagles become available in a perfect 70 grade, that would certainly be the time to buy them.

Some buyers choose to buy graded bullion coins that are essentially novelties with hopes that they will perform like collectibles. With a mark-up of 300%-500%, most buyers will never make their money back. The coins are often signed by a notable person in the world of precious metals, and that is the true value of the coin for the buyer. If that is not enough, the buyer will certainly be disappointed.

Liquidity

Graded bullion coins are liquid but not nearly as liquid as collectibles or bullion. With graded bullion, you should easily be able to liquidate through the dealer from which you bought. There are a number of local and online dealers that would be willing to buy your graded bullion. When it comes to liquidity, the collectibles have rarity and history working for it. Bullion bars and ungraded coins have the low premium working for it on the liquidation side. For example, The Gold Marketplace offers 97%-100% of spot on the liquidation side for bullion to our clients.

With liquidating the graded bullion coins there is much more gray area. It is important to have reasonable expectations, which may be closer to the market price instead of what you paid for them. The process is complicated further if the seller expects a higher selling price. If an exorbitant price is merely based on a signature on the label, they may never be able to liquidate for anywhere near what they paid.

So, are graded bullion coins wise investments or just high-priced novelties? This answer to this question will depend on the premium that was paid and the authenticity of the grading.

Again, the best buying strategy for graded bullion coins is to buy as early as you can in the year they were minted. Most years you will not know in advance if it will be a low mintage year. However, if a coin ends up being a year with a low mintage, the coin will fetch a very high price with a perfect 70 grade from NGC or PCGS.

Acquire these coins as early in the year as possible, with a perfect 70 grade. As an investor, I would suggest paying 20%-50% over gold spot price. According to the PCGS Price Guide, the increase in the asking price tends to be in that range every year. Once you begin to pay 100% over the spot price you significantly decrease the chances of seeing a profit in your lifetime. If you pay 300 or 500% over the spot price, you have likely assured yourself that you’ll never see a profit. Again, this is OK if you bought as a novelty and not as an investment.

1) make sure that the coins are graded by either the Numismatic Guarantee Corporation (NGC) or the Professional Coin Grading Service (PCGS).

2) if you are buying as an investor, avoid coins that are more than 50% over the spot price.

3) buy the coins as early as you can within the year they were minted.

No matter what you’ve done in the past, if you follow those 3 suggestions, graded gold bullion coins will likely perform well for you.

If you have more questions about the market or investing in physical precious metals, reach out to us anytime at 800-960-6280, and we will gladly answer your questions and concerns.

We appreciate you and we are looking forward to working for you.

God bless you,

Cullen Banks
The Gold Marketplace, LLC

This is a message to my fellow Americans.

Right now, the best hope for you to save the purchasing power of those dollars that you are holding in the bank is to buy gold and silver.

I am here to break the news to you:

WE ARE IN A RECESSION!!

We have had two consecutive quarters of regression in our country’s output. Over the course of the past 3 months we’ve had the highest inflation rate since the recessions of the early 1980’s. The inflation rate is ridiculously high and by the looks of things, it will not go down anytime soon.

If you are not following what’s going on, then you are sleeping through a revolution. The world is in the midst of one of the greatest wealth transfers and one of the most dramatic changes in the economic history of the world.

According to CNBC.com, the wealthiest 1% of Americans own 57% of private companies. The value of private businesses that are held by that 1% increased by 36%, or $2.2 trillion in the year 2021. For that same year, wealth that was held by the bottom 90% of Americans, declined from 30.5% to 30.2%.

The world is moving into a restructuring of the world economy; gold and silver will be the only truly universal form of money.

The world is moving away from an integrated global economy to a world with various spheres of political and economic influence. The shock of this shift is being felt in the stock market and we are seeing an increasingly devalued US dollar. The S & P 500, perhaps the USA’s most telling financial marker, is down 20% this year alone.

In an effort to save ourselves from the financial tyranny of central banks and irresponsible governments, the people of the world MUST save themselves by storing their wealth in gold and silver!

If you are a believer in Jesus Christ, Lord and Savior, then I suggest that you look to The Bible for guidance. The Apostle Paul explained in Corinthians Chapter 3, Verse 12, “Now if any man build upon this foundation gold, silver, precious stones, wood, hay, stubble; Every man’s work shall be made manifest…”. Notice Paul mentioned all tangible assets that will always be in demand.

It is Code Red right now if you are looking to hedge against hyperinflation. This ordeal that will be here before the year is over is going to be worse than the fallout from the Great Recession that began in 2008.

Irresponsible spending and debt creation by the US government has put our country in this position. Did you know that from the Obama administration to the Biden administration, our debt has ballooned over 3,000%? Hardworking Americans are facing the consequences of that debt every day.

The central banks of the dominant economic powers are on the same path that Zimbabwe has been on since the early 2000’s. Irresponsible money-printing resulted in an inflation rate of 1,281% in Zimbabwe for the year 2006. Zimbabweans citizens were patient – just as American citizens are right now. After years of broken promises, the inflation rate in Zimbabwe jumped 191% just for the month of June, 2022.

Zimbabwean citizens flocked to foreign currencies and by doing that, they forced their government to act to increase confidence in the Zimbabwean dollar.

So how did they begin to build confidence in the Zimbabwean dollar? By minting gold, which the world’s most trusted store of wealth! The Zimbabwean central bank has approved the minting of 3,500 gold coins to minted.

It is just a matter of time before the central banks of the USA, Great Britain, China, and Japan will have to go back to gold to instill trust in their currencies, both domestically and internationally.

The stock market is on borrowed time. We Americans will need to move decisively into gold if we want to preserve the purchasing power of our hard-earned savings. The average 401K is down 20% year to date. Does your heart or your mind tell you that the stock market will experience an amazing recovery this year?

Right now, gold is the absolute best safe haven. It has been so for well over 2,000 years before Jesus Christ walked the Earth.

The world is already in the midst of The Great Reset, which will lead to one of the most dramatic shifts in world economic history. This will result in a transition away from the dollar as the world’s reserve currency.

We don’t know what the world’s next reserve currency will be or if there will be more than one. Many scholars speculate that the International Monetary Fund’s SDR, which is comprised of various currencies, will be the world’s next reserve currency. Others posit that it will be a crypto-oriented unit of exchange? That part of the future is unclear.

The one thing we know for sure is that gold will hold its place as the only true real tangible money that we can rely on for certain.

If you have not already, we suggest that you put at least 20% of your liquid assets into physical, tangible precious metals coins and bars. You can bring back to life those hard-earned dollars that are wasting away in a savings account or under your mattress.

If you are held captive to a poorly performing retirement plan, it is not too late to save yourself. Did you work hard for those dollars in your retirement accounts?  If so then fight for those dollars! By the looks of the current financial market, you will save much more over the years by diverting those dollars to precious metals than you might have to pay in any penalties. History has proven that gold and silver are the most reliable way to preserve your wealth and we can also see that the stock market is on its last leg.

What happens next and how you prepare for it will profoundly affect your family’s financial future.

The predicament of most Americans reminds me of the ordeal of Rip van Winkle. When Rip van Winkle went to sleep, there was a picture of Henry VIII on his wall. When he awoke 20 years later, there was a picture of George Washington on the wall. What happened?!

Rip Van Winkle slept through an entire revolution. Don’t sleep through this inevitable financial transformation and don’t get caught sitting on your hands.

Within the realm of precious metals, there are various investment strategies. Gold and silver bullion coins and bars are a great low-premium way to get started. Collectible coins, particularly the pre-1933 American coins, are also a great investment. We advise buying them in a high grade or at least in extra fine condition.

Gold and silver are poised to skyrocket over the next 3 to 5 years. Even if you don’t love gold, you should follow the smart money into gold before it goes to the moon. The Gold Marketplace has authentic bullion and collectible products, and we guarantee the authenticity of our products.

We offer a wide range of high-quality tangible precious metals like gold, silver, and platinum. We offer a Gold and Silver Bullion Package that has the most inexpensive bars and rounds. Click here to see the Gold and Silver Bullion Package, it is a great offer. Watch this video for evidence that the market will collapse this year and gold will be the last safe haven.

If you have more questions about the market or investing in physical precious metals, reach out to us anytime at 800-960-6280, and we will gladly answer your questions and concerns. We appreciate you and we are looking forward to working for you.

God bless you,

Cullen Banks

The Gold Marketplace, LLC

This article will demystify some of the mystery that is involved with buying and owning bullion coins and bars. This is the first in a 3-part series that will address: 1) bullion coins 2) collectibles 3) graded bullion coins.

According to Dictionary.com, bullion can be defined as precious metals that are “considered in mass rather than value”. The concept is that the asking price of the product will be relatively close to the spot price of the metal that was used to create the product. Bullion coins, bars, or rounds are distinguished by an explicit statement of weight (or mass) and fineness of the product.

Today it is common to see bullion coins and bars priced between 5%-20% over the spot price. The premium over the spot price can be determined by which sovereign mint creates the coin, the reputation of the private mint, the supply of precious metals in global markets, and is the accreditation of the manufacture that created the product.

The Gold and the Silver American Eagle coins are among the higher priced bullion coins. The Gold British Britannia is among the lower priced. Bars will typically carry the lowest premium. Some designer rounds and bars can be priced a bit higher because of the design, popularity, and the input involved with creating the product. Today a 1 oz. silver Buffalo round is less expensive than a 1 oz. silver bar. A 5 oz. Scottsdale Stacker round’s premium is a bit higher that the most basic silver bar yet lower than coins like Silver Eagles or Silver Maple Leaves.

Over time the year, grade, or mintage figures can impact the overall asking price of a bullion coin or bar. We’ll address this much more in our article on graded bullion coins.

THE PROS OF BULLION

Bullion has several great attributes. Here are a few of them:

Inflation Hedge/Store of Wealth

Bullion coins’ most attractive attribute is gold’s performance in the face of inflation. Whereas dollars that are held in a bank take a beating from inflation, gold hold its value and often compensates for losses in other areas of the market. One hundred years ago a gentleman could buy himself a fine suit with an ounce of gold, which was valued at $20.66 in the year 1922. In the year 2022 $20 won’t get you a fine suit. However with the current spot price of gold being about $1,800, an ounce of gold would certain get you a fine suit.

Not only does gold hold its value, it compensates for a collapsing equity market. For example, old skyrocketed to a new all-time high of $1914 in the year 2011 when the stock market collapsed.

Low Premiums

Based on my experience, the low-price premium is the factor that attracts most buyers to bullion. Surprisingly though, most buyers that buy coins object to collectibles or graded bullion coins because of their higher premium. For our clients that believe that “gold is gold”, we usually make sure that they are aware of the even lower premium on the bars and rounds.

Availability

Bullion coins and bars are also attractive because of their availability. They are minted by the millions and have no special requirement other than being authentic products of the mint or manufacturer that created them. Almost all precious metals dealers have popular products like Eagles, Maple Leaves, or Gold American Buffaloes.

Recognizability

The most popular bullion coins are highly-recognized. The producers of these coins, like the US Mint or the Royal Canadian Mint, have built trust with buyers over several decades. This familiarity creates some degree of comfort for both buyers and sellers.

Liquidity

Owners of popular bullion products are able to liquidate their coins more easily and universally because of the recognizability and trust that popular bullion producers have built over the years. There is a strong demand for these products on the secondary market. Your Eagles, Kruggerands, and Libertads for example would be well-received by gold dealers across the world.

IRA Eligible

The Taxpayer Relief Act of 1997 opened the door for Americans to hold precious metals in a self-directed Individual Retirement Account (IRA). The most popular coins and bars are eligible to be held in IRAs. These would include Eagles, Maple Leaves, Philharmonics, Buffaloes, accredited bars, and a few others.

Discretion

Precious metals transactions are very discreet relative to stocks or bank accounts. If the spot of gold goes up and increases the value of your metals, you will not be required to pay a tax on the increase in the asking price (check with your accountant for laws specific to your location) unless you sell your metals.

THE CONS OF BULLION

Volatility

The greatest drawback to bullion coins and bars is that their value is shackled to the spot price, which can be volatile. After gold reached an all-time high in 2011 many people rushed to gold. They bought at the top of the market and then gold rolled back to a plateau of about $1,300 for several years. Those who had been in gold before the bottom fell out of the stock market achieved sizable gains in gold.

In the year 2020 gold reached a new all-time high of $2,067 in the midst of “the Wuhan Flu”. It has since plateaued at about $1,800. Although it appears that now would be a great time to buy bullion, volatility is a legitimate concern for bullion coin owners and buyers.

Counterfeit

Over the course of recent years there has been an upsurge counterfeit coins and bars that originate from China. Sometimes the fake coins are difficult to differentiate from authentic bullion coins. The most counterfeited bullion coin is the Silver American Eagle. A specialist can easily tell the different however the fakes are often good enough to mislead a non-specialist. This happens more often with the bullion coins since they are not graded by the third-party grading companies.

Do extra research on offers that appear are too good to be true. Make sure that the company that you buy from stand behind their product. If you need more assurance then get them on the phone or communicate with them by email.

CONCLUSION

It is apparent that there are far more reasons to own bullion gold and silver than there are not to own them. Considering our current economic climate, it is just a matter of time before we see a big jump in the spot price of gold, silver, and platinum.

I believe that collectible coins can also be great investments and I’ll explain why in the next video. However, bullion is a good place to start and a great asset to own.

Bullion coins are attractive for their familiarity as I explained earlier and the bars enable buyers to buy precious metals at an even lower premium. Since gold, silver, and platinum have traded within the same range for over two years and is poised for a breakout. We suggest buying your bullion now before the stock market and the dollar totally collapse.

THE GOLD MARKETPLACE WORKS FOR YOU

The Gold Marketplace, LLC offers a wide range of high-quality tangible precious metals like gold, silver, and platinum. We offer a Gold and Silver Bullion Package that has the most inexpensive bars and rounds. Click here to see the Gold and Silver Bullion Package, it is a great offer. Watch this video for evidence that the market will collapse this year and gold will be the last safe haven.

If you have more questions about the market or investing in physical precious metals, reach out to us anytime at 800-960-6280, and we will gladly answer your concerns and inquiries. We appreciate you and we are looking forward to speaking with you.

God bless you,

Cullen Banks

The Gold Marketplace, LLC

The largest Social Security cost-of-living adjustment (COLA) in four decades was given to pensioners in 2022. Benefits for Social Security pensioners increased by 5.9 percent, significantly more than the raises seniors had been entitled to previously. Although the COLA may have looked substantial at the time, an increase of about 8% is anticipated by 2023 according to the Social Security Administration’s senior actuary; that increase is 35.6 percent larger than what retirees saw in the previous year. This can appear to be a good thing—but it isn’t.

WE DON’T WANT TO BURST YOUR BUBBLE, BUT…

Despite the fact that it appears as though retirees will receive more money, the news is actually very bad. That’s because Social Security benefits are based on inflation, which develops organically over time.

The Federal Reserve has a target inflation rate of 2%, so prices will gradually rise. Most of those events have been occurring recently, which is why Social Security’s cost-of-living adjustments haven’t been very large. But inflation has been escalating recently, and seniors will get a significant increase in their Social Security checks next year as a result.

Although retirees will receive a cost-of-living adjustment next year, they are still in worse shape due to the enormous price increase. This increase is driven by sharp increases in the cost of groceries and electricity. Since Social Security replaces roughly 40% of pre-retirement income, most retirees rely on additional sources of money. The extra money they require usually comes from an investing account, but since retirees cannot wait for a market rebound, it is likely that they are not seeing 8.6% yearly returns on their investments.

As a result, retirees must withdraw more from their savings if they want to maintain the same purchasing power. This can accelerate the rate at which they exhaust their assets and run out of money. Their second choice would be to reduce spending by 8.6%, which won’t be easy at a time when the cost of basics are rising.

MAKE US A PART OF YOUR RETIREMENT PLAN

We know for sure that our economy will not improve soon. The coming years may even be worse than the ones we have been living through recently. It’s a scary, uncertain future for all of us, whether you are currently retired or still planning for your retirement. We are writing to you today to urge you to make a wise decision as soon as possible.

Investing in precious metals like gold can be a smart move for your future. The Gold Marketplace, LLC would love to provide you with this opportunity. Did you know that Gold will reach $2500 in 2022? Watch this video to learn more and grasp the reason why you should start buying gold NOW. Here are more reasons why you should invest in gold in 2022.

A product that we highly recommend is the 2022 Gold American Eagle 4 coin Set in Brilliant Uncirculated condition with a very low premium of 8.5%. Our easy-to-navigate website gives you other options like gold bars, coins, silver, and platinum.

We know that you’d love to learn more about our current economic situation and what precious metals can do for you. The Gold Marketplace, LLC provides you with the information that you need through our YouTube channel and our blogs.

Let’s work together to secure our futures. We are in this together, and we want you to know that we are here for you.

You are welcome to call or email us at (800) 960-6280. Monday through Friday, 9 to 7 Mountain time, and occasionally on Saturdays, we are in the office.

We look forward to working for you.

Recently, the Federal Reserve has stopped using the term “transitory” when referring to inflation, because prices are still rising so rapidly.

The increase in consumer prices in the United States during May was the highest since December 1981. This might give the Federal Reserve more justification for keeping interest rates high. The higher rates are having a significant negative impact on the stock market, however.

Many veteran investors started to criticize this heinous cycle. Robert Kiyosaki said, “When inflation goes up, we’re going to wipe out 50% of the U.S. population,”

The Ugly Truth about the US Economy

Like all of us, Robert Kiyosaki is displeased with the current situation of the US economy. He claims that America currently has bubbles in the bond, stock, and real estate markets. “America has stopped manufacturing products; we make bubbles,” he says. The president’s decision to postpone construction of the Keystone XL oil pipeline, which Kiyosaki believes is a major factor in the high cost of energy, has drawn criticism from him as well.

Kiyosaki claims that the typical American does not have $1,000 in savings. As a result of this lack of savings, most Americans could not afford an unexpected $1,000 expense, according to a recent Bankrate survey. For those who wish to enjoy their golden years, it also implies problems. According to Kiyosaki, the stock market will tumble when the bubbles pop. Those who rely on their 401(k) plans “are toast,” therefore. “Our pensions are worthless, thus we don’t have a retirement”, he said.

Physical Precious Metals are Safe-Haven Assets

It makes sense that Kiyosaki favors safe-haven investments such as gold and silver, given his bleak outlook. Unlike fiat money, precious metals can’t be created out of thin air; they help investors maintain their wealth.

Bullion bars and coins will do the trick. TGM would be thrilled to have the chance to contend for your business. Currently, a premium of more than 10% is the industry norm. The 2022 Gold American Eagle 4 coin Set in Brilliant Uncirculated condition is just one of the many goods we offer for as little as an 8.5 percent premium.

The 2022 Year of the Tiger 100 g Gold Bar is a product that I have purchased and also recommended to my clients. It has a very low premium and is lovely. Low mintage bars like this one exist. It was produced by a well-known firm and will be simpler to liquidate than most bars.

Finally, I should mention that platinum will break out for a variety of causes.

Palladium will soon give way to platinum in the industrial sector, and I see this as a positive move for the metal. The Isle of Man 1 oz Platinum Noble is one of the most well-known platinum coins in existence. Numerous signs point to platinum’s great potential as an investment and a hedge against inflation.

Guaranteed safe, convenient, and practical!

These are just some of the opportunities we offer. The total cost of the coin collection, the bar, and the platinum coin would be around $11,000. If you bought 2 of the 4 coin sets, it would only cost you around $8,000.

Our payment options are simple and practical. Simply select your metals on our website, and then pay instantly by e-check or wire transfer. On our website, you can fill in your account details. Your account information won’t be accessible to us at all. It will be a stress-free process, guaranteed. You can use cryptocurrencies to pay directly on our website. Every transaction is private.

You are welcome to call or email me personally at (800) 960-6280. Monday through Friday, 9 to 7 Mountain time, and occasionally on Saturdays.

We look forward to working for you.

Unless you are a mind reader, no one knows for certain what the future holds. However the best predictor of the future is the past and the present.

In this study, we’ll examine historical factors that have led to rapid increases in the gold spot price and look at how similar events are all occurring in the year 2022.

A look at the evidence regarding the gold spot price suggests that it is quite likely that the gold spot price will reach $2,500 in the year 2022 despite a long history of the gold spot price being manipulated downward. That would only be about a 35% increase to today’s spot price of 1840. After watching this video, you will see that a 35% increase in the spot price this year is quite possible.

This study will identify the types of events that have led to rapid rises in the gold spot price and show how 10 of these events are happening concurrently in the year 2022.

Geopolitical factors have often led to rapid increases in the gold spot price.

As a consequence of The 1973 Oil Crisis, Gold shot up 73.49% over the course of 1973. Gold went from $64.10 at the close of 1972 to $112.25 at the close of 1973.

The 1973 Oil Crisis  began in October 1973 when the members of the Organization of Petroleum Exporting Countries, led by Saudi Arabia, proclaimed an oil embargo against nations that supported Israel during the Yom Kippur War. The first nations that were targeted were Canada, Japan, the Netherlands, the United Kingdom and the United States.

In the midst of the embargo, oil prices shot up 300%. This affected other areas of the U.S. economy, forcing inflation up to 6% in 1973 and over 11% in 1974. A war on the other side of the world profoundly impacted all areas of life in the United States.

Gold closed at $187.50 in 1974, after rising nearly 300% in 24 months.

The 1979 Oil Crisis had a similar effect on the gold spot price. This crisis began when political instability in Iran slowed down the global supply of oil. Although the global oil supply only decreased by 4 percent, the oil producers raised crude oil prices. Oil prices doubled in 12 months to over $39. The rise in oil prices affects all areas of the global economy and the inflation rate in the US went to 11.25% in 1979, which had been the highest rate since 1974.

Between May of 1979 and December of 1979 the gold spot price rose over 100% from $243.70 an ounce to $524 per ounce. If one event can push gold up by 100% in 8 months, imagine how a storm of multiple events in multiple areas might affect gold prices, especially with gold being the world’s most popular safe haven.

Financial bubbles have also tended to cause rapid increases in the spot price of gold.

A bubble is when an asset has a rapid increase in the price without a corresponding increase in the intrinsic value of the asset. The expansion of the bubble can stem from a number of different factors like the sheep mentality similar to what we have seen with Bitcoin or deregulation in a previously regulated area.

One of the most impactful bubble collapses was the 2008 Financial Crisis that started in the US and reverberated throughout the world.

From January 1, 2007 to January 1, 2011, the spot price of gold rose 226% from $696.43 to $1,573.16.

Predatory lending, risky investments by global financial institutions, and the bursting of the United States housing bubble all combined to create an epic financial collapse.

In the year 2006, over 17% of home purchases were subprime loans or no-documentation loans. By early 2007 the writing was already on the wall. Lenders noticed an increase in delinquency rates. Also in 2007, Former Federal Reserve Chair Alan Greenspan predicted a recession.

Throughout the years there were indications that a storm was brewing and during that time smart investors sought refuge in gold. For the year 2005 gold increased 17% to $513, gold went up another 24% to $635 for the year 2006, and gold moved 32% for the year of 2007 to $836.

By 2009 the effects of the housing bubble being popped was being felt around the world. The word was out that we were in a global financial collapse.

For the year 2009 gold jumped 28% to $1,104. It jumped another 28% for the year 2010 reaching $1,410.

Globally over $2 trillion dollars were lost in the ordeal. The only bright spot was gold. From January 1, 2007 to January 1, 2011, the spot price of gold rose 226% from $696.43 to $1,573.16.

In recent years, there have been indications that a 35% increase in the spot price is quite possible. In 2019 the news of the negative yield curve along with instability in Afghanistan pushed gold up 18%. The pandemic and all that came with it pushed gold up 25% for the year of 2020.

History proves that a 35% increase in the spot price can happen fast and it only takes one occurrence anywhere in the world.

The year 2022 is unlike previous years because there are seemingly an infinite number of events this year that could push the gold price up by 35% all on their own!

Here are 10 of those events.  

#1 Record Inflation With No End In Sight

The inflation rate continues to increase. For May 2022 the inflation rate reached 8.6%. For the month of March 2022 the inflation rate was at 8.5%. That March rate was the highest 1 year increase since December of 1981. The inflation rate slowed down just a bit to 8.3% for April 2022. Although this down from the 41-year high of 8.5% in March 2022, it was still far less than Federal Reserve’s forecast of 8.1%. The annual rate of inflation rate for the world also continues to increase. Based on consumer price index (CPI), global inflation accelerated to 9.2 % in March 2022, up from 7.5% in February 2022 and 6.8% in January 2022. The consumer price index as produced by the Bureau of Labor Statistics is notoriously low, relative to the daily experience of most Americans. The gas pump and the grocery store both tell us that the cost of living is up more that 8.6% from this time last year, which is the claim of the Bureau of Labor Statistics.

What makes this a thousand times worse is that wages are lagging far behind inflation. Wages are up 5-6% from this time last year however both the listed inflation rate and the true inflation rate are far beyond that wage increase. Momentive Workforce Survey conducted a study in May 2022. According to their study, 66% of Americans say that inflation has outpaced any gains that they have made in salary over the past 12 months. This particular weakness in the US economy will be a part of the concurrent misfortunes that will force investors into gold and silver and a refuge.

#2 The Highest Public and Private Debt In US History

By the end of April 2022, the public debt of the U.S. was around $30.44 trillion. Over 40% of US dollars in circulation have been created from thin air over the course of the past 24 months. Money printing is a tool that governments have overused, especially since the USA did away with the gold standard in 1971. Every day that goes by, money printing becomes a less viable option because the debt results in less confidence in the dollar. Further, consumer debt is also through the roof.

According to the Federal Reserve, consumer debt levels for March 2022 climbed by $52.4 billion, an annual increase of 14%, seasonally adjusted. Revolving credit, which includes credit cards, was up by 21.4% from March 2021. This is a bad sign for our economy, especially in the face of higher interest rates.

Unfortunately this is a factor will combine with the others to collapse our economy and consequently push gold over $2,500 per ounce this year.

#3 The Hyper-Inflated Stock Market

The 3^rd factor that will result in skyrocketing gold prices this year is the hyper-inflated stock market.

The poorly performing US stock market is highly inflated and there is no indication that it will recover anytime soon. This is reflected in the horrendous 2022 performance of the S & P 500 index. The S&P 500 index measures the value of the stocks of the 500 largest corporations by market capitalization listed on the New York Stock Exchange or Nasdaq. Right now the price to earnings ratio for the S & P 500 is the worse that it has ever been in the entire modern era of history. The P/E ratio gives an indication of how long it would take for an investor to earn back their entire investment. The average for the S & P 500 10-year price to earnings ratio has been 19.6. As of June 3, 2022 the current S & P 500 10-year P/E ratio is 31.1. With a standard deviation of 1.4, this suggests that current investors will need to wait 40% longer than the historical average to recoup their investment.

This is bad news for those of us that have our entire retirement tied up into mutual fund and 401Ks.

This will be a part of the crap storm that will send the dollar spiraling backwards and gold shooting forward by at least 25% this year.

#4 Supply Chain Issues

The supply chain issue will exacerbate several of the other events on this list, especially inflation and social unrest.

The Russia/Ukraine conflict has severed key supply lines for wheat, nickel, aluminum, platinum, and sunflower oil. There are a number of countries in the Middle East and Africa that rely on foodstuffs from the Ukraine.

Strict Covid protocols and the Ukraine conflict have combined to slow down China’s production and to restrict their distribution channels.

The supply chain issue is a big part of the reason why world food prices are skyrocketing. The United Nations Food Index reports that world food prices are up 29.8% in April 2022 compared to one year ago.

The supply chain issue does not show signs of going away or even getting better for that matter. This will contribute to the record collapse that will send folks running to gold with the last few dollars that they have left.

#5 The Negative Yield Curve

Inverted yield curves occur when short term US Treasury bonds have a higher yield than the long term bonds. Historically, an inverted yield curve is a reliable indicator of a coming recession. It is largely a reflection of declining investor confidence. When consumer confidence in securities decline, it usually leads to higher gold prices.

For example, in May of 2019 the yield of the 3-month US Treasury bond became higher than the 10-year bond on May 23, 2019 and except for one day in July it remained inverted over 4 months until October 10^th of 2019. This began a bull run in gold, which I would argue, we are still in today. Within that timeframe, gold jumped over 14% from $1280 to $1490.

According to Bespoke Economics, when there is a negative yield curve, “there has been a better than two-thirds chance of a recession at some point in the next year and a greater than 98% chance of a recession at some point in the next two years.”

Unfortunately for mainstream investors, the yield curve inverted March 31, 2022 US. At one point the yield on the 10-year Treasury fell to 2.331%, while the yield on the 2-year Treasury was at 2.337%. That is right. We have had a negative yield curve in 2022.

The 2022 negative yield curve suggests an impending financial collapse, which will likely be sped up by the all of the debilitating issues that our country is facing. Inevitably, these factors will cause a huge spike in the gold price in 2022.

If you are still not convinced that one of the greatest financial collapses in history will occur in 2022 that will cause gold to reach $2,500, we have 5 reasons factors that will help to send panic throughout the US and push up the gold price.

#6 An Increase In Violence Throughout America

Violent crime in the US rose 5% from 2019 to 2020 and it has shown no signs of regression.

As reported by the Gun Violence Archive, excluding suicides, 19,515  people in the U.S. died in gun violence-related incidents in 2020. That number increased to 20,923 for the year 2021.

Additionally, an increase in mass shootings in the United States is adding to the hysteria. According to the Gun Violence Archive, the number of mass shootings grew from 610 in 2020 to 692 in 2021.

In a June 7, 2022 report called, “Summary of Terrorism Threat to the United States”, Homeland Security cited “recent violent attacks by lone offenders against minority communities, schools, houses of worship, and mass transit” as an “evolving threat”.

In 2022, 53% percent of Americans say that they worry about crime a “great deal”, which the highest level since 2016.

There is no evidence that gun violence will be declining in the US any time soon. This reality will contribute to the hysteria and instability that will send Americans to gold and a safe haven.

#7 An Increased Number of Home Evictions

Eviction filings are hitting new highs throughout the United States. With the end of the moratorium that was mandated in the midst of the Covid crisis, overdue homebuyers and renters are left with no legal leg to stand on.

Three cities in Texas – Dallas, San Antonio, and Houston – are experiencing an increase in filings from landlords looking to force out renters.

In January 2020, Harris County, which encompasses Houston, had 6,351 evictions filed. The cases dropped significantly during the CDC’s moratorium on evictions in September 2020. But months after it was lifted in August 26, 2021, eviction filings picked up to more than 6,800 cases, surpassing the number of cases filed before the pandemic.

The Center for Disease Control and lenders like Freddie Mac have done their best to prevent the inevitable, however all the evidence suggests that we can expect more Americans to lose their dwelling and for many this well result in the loss of a hefty investment.

This reality will have a snowball effect and will contribute to heightening anxiety, insecurity, and anger.

This will help to create the environment that will result in a new all-time high for gold this year.

#8 Rising Interest Rates

The Federal Reserve, which is the Unites States’ central bank, raised interest rates by ½ percentage point on May 4, 2022. This was the highest rate hike in over 20 years. At one point they were likely to raise rates by ½ percentage point at every Fed meeting this year. Out of desperation, the Federal Reserve raised interest .75%, which is the steeped hike since 1994.

This will dry up access to capital for both the consumer sector and the commercial sector, both of which have become dependent on stimulus. Credit will become more expensive to consumers at a time when a record number of Americans have overextended credit lines. Mortgage rates will go up just as we are seeing more adjustable rate mortgage loans.

Higher rates also mean that the commercial sector will have fewer dollars to invest in their businesses. This will result in an unfortunate trickle-down effect that will likely result in layoffs. In 1981 The Fed raised interest rates to rein in inflation and what resulted was an 11% unemployment rate, which was the highest unemployment rate since The Great Depression.

Rate hikes is just one more factor that will contribute to the market collapse, housing crisis, and social unrest that will have investors rushing into gold and silver.

#9 The Ukraine/Russia War

The Ukraine Russia War has had a ripple effect on the entire global economy.

US sanctions on Russia began in February 2022 after the conflict in Ukraine began. These sanctions included a U.S. ban on Russian oil imports. Russia is the world’s second largest exporter of oil and gas. Russia has shifted its exports away from the US and Europe to India and Asia, enabling them to acquire cargoes at a steep discount.

This war and the White House’s responses have helped to drive up the price of West Texas crude oil from $76.08 to $120.67, which is over 60% year to date.

In the midst of this, The White House has provided over $54 billion dollars to the Ukraine in “humanitarian aid” so far this year, with over 20% of this aid going to weapons. No one can say that the Biden presidency has not done its part to inflate the “Everything Bubble”!

Furthermore, US aid to Ukraine has also stoked the flames of some very bad blood between the Kremlin and the White House. On August 25, 2022 Russia’s Foreign Minister Sergey Lavrov publicly stated that the West is de facto engaged in a “proxy war” that could lead to World War III. He added that NATO shipments into Ukraine would be viewed as “legitimate targets” by Russia’s military.

Again, oil prices are already up 60% year to date and we are only in early June! This is so reminiscent of the 1979 Oil Crisis where the price of oil jumped over 100% that year. That year gold responded by also jumping over 100%.

A 35% increase in the spot price of gold over the next 6 months is just about a certainty.

#10 The Weaponization of the Dollar

The US dollar has served as the world reserve currency since the Bretton Woods meeting in 1944. According to the IMF over 59% of the world’s reserves are held in dollars as of March 2022.

On February 21, 2022, in response to Putin going into Ukraine, the Biden administration issued Executive Order 14065 that stopped new US investment in, US exports to, or US imports from Russia.

It has been reported that sanctions have tied of up 2/3 of Russia’s reserve.

According to a June 3, 2022 White House briefing, “the Russian economy is staggering under the weight of financial and trade sanctions, export controls, and the exodus of approximately 1,000 U.S. and multinational businesses.”

Several countries have taken exception the weaponization of the dollar.

Yu Yongding, a leading economist at the Chinese Academy of Social Sciences, said in a speech last week that sanctions had “fundamentally undermined national credibility in the international monetary system”. He added, “What contracts and agreements can’t be dishonoured in international financial activities if foreign central banks’ assets can be frozen?”

China and India have maintained efforts to establish an efficient payment system with Russia. Other countries, including South Africa, Brazil, and Mexico have vowed to remain neutral and maintain trade with Russia.

The weaponization of the dollar is one more factor that makes the use of the dollar less normative throughout the global economy and forces many emerging countries to conduct their transactions in currencies other than the dollar.

This will be one more factor that will create a burden that will weaken the dollar this year and force up the price of the world’s number 1 safe haven –

GOLD!

Historically it has taken only 1 event to push gold up in a short period of time.

Combined with all other attributing factors, it is quite likely that gold will jump 35% to reach $2,500 this year alone.

However, even if it does not make the leap to $2,500 in the remainder of this year, gold investors will still make out very well.

If gold jumps by 10% and closes at $2,046 for the year, it will still have done its job by outdistancing the single digit inflation that Bureau of Labor Statistics is reporting.

If gold jumps 20% this year and closes at $2,232, it will have offset the true inflation rate, which is closer to 18%.

To all the upstanding people of the United States, it is time to protect your hard-earned savings.

Strengthen your position in gold in gold before the price goes to the moon this year.

Visit our website NOW to get started! For gold, the Gold American Eagle 4 Coin Set is a great place to start.

The Liberty Head 4 Coin Set

One of the best deals in gold right now is the  Liberty Head 4 Coin Set that is currently offered by thegoldmarketplace.com. The Liberty Heads are globally recognized and beloved by both investors and collectors.

Liberty Heads were first minted in 1838 with the release of the $10 Liberty Head and ended in 1907 when the last of the $20 Liberty Head coins were minted.

Our Liberty Head 4 Coin Sets are in very fine condition, which is excellent for coins that are over 100 years old.

The 4 denominations are:

The $20 Liberty Head, which weighs .9675 ounces has a diameter of 34 mm

The $10 Liberty Head, which weighs .48375 ounces has a diameter of 27 mm.

The $5 Liberty, which weighs .24187 ounces and has a diameter of 21.6 mm

And the smallest of the 4, which is the $2.5 Liberty, weighs in at .12094 ounces and has a diameter of 18 mm.

All 4 denominations have a reeded edge.

The United States Mint added an inkling of copper to the Liberty Head coins to make them stronger and more durable.

By acquiring all four coins together, it enables us to get you an extremely low premium compared to what you would be paying for them individually.

Liberty Head coins have excellent liquidity and because of their illustrious history they’ll always trade well above the spot price.

These Liberty Head coins are in very fine condition and they are perfect compliments to your non-tangible assets like stocks or cryptocurrency.

If you are concerned about a confiscation like Executive Order 6102 (there is an image for this at the bottom) under the Trading With The Enemy Act of 1917, then you should now that these aged Liberty Head coins in very fine condition would likely qualify as exempt “collectible” coins. In contrast, modern bullion coins would have no reasonable claim to exemption.

Cull coins may be cheaper; however the Liberty Head 4 Coin Set enables you to get a big bang for your buck while acquiring a part of our country’s rich history.

Gold is tangible, ownership is discreet, and since 1971 it has increased 15% on average when inflation if over 3%.

Availability is very limited!

GET A LIBERTY HEAD 4 COIN SET FOR YOURSELF AND YOUR FAMILY WHILE YOU CAN!

According to the March study released by the New York Federal Reserve Bank, the percentage of consumers who believe that inflation will rise in the next year has risen to a record high. The perception that prices are already increasing is considered a threat to the country’s economy, and many economists feel that the Federal Reserve’s recent decision to raise interest rates was appropriate.​

WHAT WORRIES ALL OF US

This month, rent is predicted to rise 10.2 percent, followed by medical care (9.6 percent), food (9.6 percent), and gasoline (9.6 percent).

Wage increases are projected to remain at 3%, while 36.2% of Americans expect the jobless rate to climb in the coming year, the highest level since February 2021, according to a recent survey. As these events occur, Americans’ anxiety levels rise, and they become increasingly concerned about their future.

DON’T FRET!

The going may be tough, but don’t lose heart! The Gold Marketplace, LLC can assist you in fending off the ongoing economic crisis. You’ll be able to build strong investment portfolios, hedging strategies, and wealth protection plans with our wide selection of gold, silver, platinum, and palladium.

IT’S NOT TOO LATE! 

It’s a fantastic time to start investing in tangible precious metals in 2022. Here are some of the reasons why 2022 is an excellent year to begin investing in gold.

Please visit our website at this link to learn more about us and what we have to offer. We hope to speak with you soon and look forward to assisting you and your family in building a more secure future.

God bless you!

Since the earliest days of United States history gold and silver have been thought of as the only real money. The American dollar was backed by gold until the United States ended the Gold Standard in 1971. Since then, the dollar has been backed by nothing but confidence and its purchasing power has moved backward fast. The consumer price index tracks the rise in prices. Prices rose immensely when the US ended the gold standard in 1971 as seen in the graph.

Fortunately in 1974, laws were changed that enabled US residents to buy gold in the United States. Throughout these decades, gold has maintained value but the dollar has not.

There are many reasons to buy gold coins and bars. Here are five reasons why gold is an ideal investment for our times.

1. Gold maintains its purchasing power over time.

According to the World Gold Council, since 1971 the price of gold has increased 6% when inflation has been 3 or lower for the year, and has increased 15% per year when the inflation rate has been higher that 3%. During the Dotcom Stock collapse of 2000 and the 2008 market crash, owners of gold saw their gold skyrocket to compensate for the declining value of the dollar. Gold is in a league of its own when it comes to preserving your purchasing.

2. Gold is an extremely undervalued asset.

What makes physical gold coins a bargain is that they are extremely undervalued. The spot price of gold is supposedly based on the amount of tangible gold held on major gold exchanges. However the exchanges sell more derivative products than they have in gold. If holders of the derivative products ever ask that their gold be delivered to them, gold prices will skyrocket. There is no possibility of gold going to $0 value like securities and other intangible assets. This makes gold a perfect complement to crypto currency in your portfolio. When you buy gold bars or coins the premiums on them are low, ranging from about 5% to 15%. Currently you can get a $50 American Gold Eagle coin at The Gold Marketplace for as low as $2,046, which is about 7% above the current spot price. 

3. Gold has excellent liquidity.

In fact, the only money that is more liquid than gold is the American dollar; however the purchasing power of gold is not going backwards like the dollar. Gold is universally accepted and can be easily exchanged for cash. Trusted coins like the Eagle or even gold bars can be liquidated in any country in the world.  Gold coins can easily be transported internationally because the currency stamp on the coin is well beneath the actual value of its gold content, the owner can declare $50 for example instead of the actual value of the coin, which is well above $50. 

4. Gold adds diversification of your portfolio.

Gold belongs in the savings/investment portfolio of every American. Most Americans are heavily invested in the stock market via retirement plans and also hold considerable savings in dollars due to their dependence on the banking system. Gold is outside the banking system. Also, gold is inversely correlated to the stock market and the dollar. When they go backwards, gold goes forward. Gold performed well during the 2000 financial collapse, the 2008 collapse, and will perform will in the next financial collapse.

5. Gold has a longer performance history than any other asset. Cryptocurrency are unproven and we have yet to see how it will perform in a crisis. History has proven that fiat currencies like the Dollar that are not backed by gold or silver will inevitably go to zero value. Gold has been used as reliable currency at least 700 years before Jesus Crist was born. By all available evidence, gold will continue to be reliable money long after the unbacked fiat currencies of the world collapse.