Friday's U.S. nonfarm payrolls for December were 155K, 150K was expected and this was down in the prior data of 161K. The unemployment rate was still an elevated 7.8% suggesting a frail U.S. jobs market. Gold edged up on Monday on the heels of uninspiring U.S. jobs information which supported market expectations for continued quantitative easing in the U.S. Federal Reserve. In gold futures and options hedge funds and institutions elevated the size of their net longs in gold in the week to Dec. 31, ending two weeks of declines, CFTC information showed. Rare Coins, Silver Coins, Gold Coins >> http://www.silver-dollar-values.xtz.cc/SELLING-GOLD/
The U.S. Mint's gold coin sales slid for a third consecutive year in 2012 showing how demand for gold bullion amongst the retail public remains lackluster at best. Demand remains nicely below the record levels noticed preceding the Y2K scare in 1999 and beneath the levels seen when the coins had been first launched in 1987 and in the aftermath of the Wall Street Crash of October 1987.
Falling demand for coins in the U.S. and elsewhere is most likely due to the false perception that the worst of the international debt crisis has been noticed. American Eagles are better liked in the U.S. but other government mints like the Perth Mint of Western Australia have said that they saw a fall in demand in 2012. The U.S. Mint sold 753,000 troy ounces of American Eagle gold coins in 2012, according to information posted on its web site, down 25% from a year earlier and also the lowest full-year sales since 2007.
Dr. Constantin Gurdgiev has analyzed the information of US Mint coin sales in December 2012 and has looked at them in their essential historical context going back to 1986. He is one of the few academics in the world to have researched and written academic papers about gold. We believe that the fall in demand is due to renewed complacency regarding the international debt crisis. It's also most likely due to the fact that conventional purchasers of gold coins and bars have secured their allocation to store of wealth gold bullion in recent years. It might also be because there are only a few new retail buyers coming into the bullion marketplace in western nations - in contrast to in Asian nations and especially China.
U.S. Mint information does not support the view of a dramatic, reckless, greedy buying of gold by the fabled speculatively crazed retail purchaser or the fabled 'gold rush' that some headline writers and media commentators have claimed is taking place.
Three consecutive years of falling demand for gold coins and the lowest demand for U.S. gold coins since 2007 shows how those nonetheless calling gold a bubble, for very simplistic factors, remain ill informed. Bubbles are of course characterized by mass participation by the public and surging demand to record levels. How High Will Silver Go? Learn More >> http://www.silver-dollar-values.xtz.cc
The common public 'Joe and Josephine six-pack' or the public in most western nations stay far from the gold market. Media tech darlings like Apple and Facebook shares are far more appealing to today's shoeshine boys and girls. Indeed, home, despite the bursting of bubbles in some nations, remains the investment of option for your retail public in many nations.
Despite, the risk of becoming massively indebted, the substantial risk of sharp prices falls in many home markets -particularly London and the UK - and of subsequently being in unfavorable equity and possibly even losing the family house.
Many frightened citizens have also piled into cash in the false belief that 'cash is king.' This is particularly the case in many European nations exactly where bank deposits now have a "government guarantee". The public has however to realize that the state guarantee comes from a state that's solvency is far from assured in the coming months and years.
The man and woman in the street in most western countries continues to be a more of a seller of gold (jewelry for money) than a buyer of gold as seen in the western world phenomenon that is ˜cash for gold.' The shoeshine boys and girls of today continue to be sellers of gold in the international phenomenon that's 'cash for gold'. In fact, the general public, 'Joe Public', is selling gold jewelry in order to raise cash rather than purchasing gold bullion in order to protect and grow wealth.
Germany, Austria and Switzerland would be the exceptions in western retail markets as there is increased retail demand for gold bullion in these nations. This really is due to the German and Austrian understanding of the risk of inflation and currency devaluation from historical encounter and due to the Swiss understanding of how physical gold bullion stored in Swiss vaults has been used to shield and preserve wealth throughout history.
It is also important to keep in mind that demand for gold bullion coins and bars is not a good contrarian indicator of retail demand and the common mass mania or greedy buying that accompanies most marketplace tops and most bubbles.
Purchasers of gold coins and bars are store of wealth financial insurance long-term gold owners. In many instances the buyers do not intend ever selling their gold unless they're forced to by economic circumstances. They're not speculative purchasers motivated by greed or merely to make a profit. The final stages of a bull market are characterized by reckless buying by more speculative purchasers whose sole motivation is to make a capital gain. Thus, more speculative kinds of gold ownership like gold futures, CFDs, mining, junior mining and exploration shares are and can be the preferred vehicles for such buyers.
Therefore, a far better indicator of animal spirits and whether or not there's "irrational exuberance" in the gold market is COMEX information and the price movement of businesses involved in the gold mining sector. Such automobiles are for investors and speculators and cater for your less risk averse stock trading and investing public and are a correct benchmark of retail exuberance for gold. Rare Coins, Silver Coins, Gold Coins >> http://www.silver-dollar-values.xtz.cc/SELLING-GOLD/
The Commitment of Traders (COT) information in the COMEX and data in the global gold market and the increasingly essential gold spot and futures markets in Dubai (DMCC) and Shanghai (SGE) should be monitored to gauge whether the animal spirits of a bubble are creating. COT data from the COMEX remains beneath the record levels seen in recent years and sentiment remains lukewarm these days.
Gold ETF holdings are at record highs but SEC data shows that the majority of the buyers of ETFs remain hedge funds as well as other institutions. Indeed, a large part of the current increase in demand for gold has come from hedge funds, pension funds and central banks. They're allocating into gold for safe haven diversification reasons.
More speculative gold mining stocks have had a torrid time and have massively under performed the gold marketplace. The XAU or the Philadelphia Gold and Silver Index is one of the most watched gold indices on the market. Today it's trading at 162.53. In September 1987 it was trading at 154.25. It has risen just over 5% in over 25 years and isn't far above its long-term average of the last 29 years (since January 1984). A gold bubble is likely to see gold mining companies becoming home hold names and the more popular gold mining businesses being owned by more speculative stock picking retail purchasers internationally.
The information strongly suggests that there's little in the way of ˜animal spirits' connected with investment bubbles in the physical gold bullion market or in the wider gold market. There are no indicators of a gold mania or ˜gold rush' whatsoever and prudent individuals should continue to have an allocation to safe haven gold. How High Will Silver Go? Learn More >> http://www.silver-dollar-values.xtz.cc