Premiums Now Normal
By Harry Miller
Gold has held
well over $900 per troy ounce. Silver spiked to
the higher end of the $14 range and platinum
fell on its butt! Why? The answer is more fear
coupled with depressing economic news. Gold
reacted to fear. Silver and platinum reacted to
the possibility of lower industrial
The premiums on nearly all bullion items have
returned to the normal levels of a year ago.
Only the fractional gold and platinum issues
maintain higher premiums because of no new
Those premiums should slowly dissipate as
production comes online. If demand remains
limited as production comes on, these recent
issues could have historically low mintages.
Older U.S. gold issues are a little softer.
Major buyers are more selective in regard to
quality and grading. A few months back a lightly
cleaned gold $20 did not matter if it looked
nice. Now it is the "kiss of death."
There are numerous jumps and dips for early
type, especially in pre-1840 dollars and halves.
Common Barber halves are soft in higher Mint
State grades. This is a result of gold/silver
buyers that are active today. Nice BU Barbers
often show up at their buying locations and are
bought for a song. These buyers sell them for
whatever current dealer bid is. If that gets
recorded on the trading networks, that bid
becomes the new ask, even if it was one
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