Throughout recorded history, true money has been defined as a tangible item accepted for exchange and considered to have value.
The cryptocurrency phenomenon continues with its mind-boggling volatility and millions of dollars gained and lost on a minute by minute basis.
Recently lawmakers in Idaho and Arizona have passed bills removing Capital Gains Taxes from transactions involving gold and silver bullion.
As global equity markets tumble, many analysts say it could be time for gold to shine once more as a safe buy in times of market turmoil. Spot gold prices are hovering just below $1100.00 per troy ounce as I write this, reflecting a modest 1% increase since January 1st. However, that 1% increase would look extremely appealing to those holding equity based portfolios. Gold prices recently topped $1100.00 for the first time in over two months as the dollar fell in response to concerns over both the Chinese economy and weaknesses within our own economy.
Recent depressed prices for precious metals have led to the usual market response, a surge in physical demand for bullion coins and bars globally. This is not only confirmed by the volume of our local and national sales of late, it’s confirmed by sales figures and production issues at both government and private mints and refiners. There have been frequent shortages of many of the most popular silver and gold bullion items both locally and nationally over the past several weeks. Here at Jack Hunt Gold & Silver we have been out of virtually every product we offer at one point or another over the last month. Ultimately these production glitches, delivery issues and shortages have led to rising premiums on physical metal.
The US economy hasn’t fully recovered from the last recession, what many have referred to as the worst since the Great Depression, but another economic downturn could be looming in the not too distant future, according to one prominent economist.
When most of us think of precious metals gold tends to be our first thought. Silver, the less expensive of the two, tends to be relegated to second place. Silver is often thought of as similar to gold in that it’s pretty in jewelry and has always had value, but it’s fundamentally of no use to society. You could make that argument about gold which is why investors should look at gold as more of a currency than a commodity. Silver, contrary to gold, does have significant industrial and practical applications. Approximately half of all the silver produced globally is used by industry, the balance being used as jewelry or for bullion.
“Gold is the premier currency where no fiat, including the (U.S.) dollar, can match it.” Alan Greenspan, 2014