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SILVER 00.00 1.20 0.00%
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  • Metal Market Report January 2023 - Week 2 Edition

Metal Market Report January 2023 - Week 2 Edition

January 2023 – Week 2 Edition

Gold and Silver Rebound, Look Even Stronger in 2023

Gold and Silver both closed 2022 in positive territory after spending most of the year in the red. Their recovery is due to the dollar’s sharp decline since October, falling almost 10% in the fourth quarter. That pushed silver up nearly 5% for the year and gold up fractionally. In the same period, stocks fell sharply, with the S&P 500 down almost 20%, the Dow down almost 9% and the tech-heavy NASDAQ down a huge 33%.

Year-End Summary: Precious Metals Rally to “Victory” in the Fourth Quarter

Just like a football or basketball game where the favorite team lags for three quarters only to rally for a win, gold and silver rallied in the fourth quarter to take the lead and win the game at the buzzer.  For the full year, the U.S. Dollar Index (DXY) gained 8%, but it was up over 16% through September 30. At one point it was up 26% in a 16.5-month surge from May 24, 2021, to October 10, 2022. Since then, however, the dollar index dropped almost 10 points from 113.3 to 103.5, pushing gold and silver to positive gains.

The only plus signs were in the U.S. dollar and three of four precious metals, which also means gold and silver were up in double digits in 2022 in many other currencies. For instance, gold would be up about 11% in the British pound (and the Japanese yen), and silver would be up about 4% more since the dollar disguised the strength of the precious metals in other currencies.

U.S. Mint Bullion Coin Sales Were Down Sharply in Late 2022, Despite Rising Prices

Despite the recently rising gold prices, only 4,000 ounces of the Gold American Eagle coins were sold in December (vs. 42,000 sold in December 2021) and no Gold American Buffalo coins were sold (vs. 10,500 sold last December).  There were 59,000 Silver American Eagles sold in December.

For the full year, Silver American Eagle sales were down 43.5%, and gold bullion coin U.S. Mint sales were down 13.3%.  Silver bullion prices were up 4.4% for the year but the Mint made Silver American Eagle sales difficult to negotiate and prohibitively expensive with delivery delays and super-high double-digit premiums of 40% or higher over spot prices. In pricing a variety of dealers, I saw wholesale prices of $33 to $35 per coin at $24 spot silver. There are far lower premiums available on other global mint silver products. Call your account representative for an array of available alternatives to Gold or Silver American Eagles, as I predict gold and silver will rise in 2023.

Later this month, I will report on how well our recommendations did in 2022 as many of our classic rare coins outperformed gold and silver.

Get to know the “Team Mike” Professionals at 1st American Reserve
Working with Dr. Mike Fuljenz, America’s Gold Expert ®

John Linscomb
1st American Reserve Sr. Account Representative

Referrals are the greatest compliment you can give to me

John Linscomb, a Sr. Account Representative at 1st American Reserve, joined the company 19 years ago. His background is interesting in that he grew up on a cattle ranch and continues his love of the outdoors. During hunting season, when he is not in the office or spending time with his family, you can find John in a deer stand. In the summer, he is known to hook a few lunkers, as well.

John is especially proud of 1st American’s A+ rating with the Better Business Bureau and the fact they have been accredited with the BBB since 2002.

John is involved locally in the community and is a member of the Lion's Club in Sour Lake, just west of Beaumont.  He has also volunteered with Boys’ Haven and provided food at several of their events.  He and his wife have two children and stay very involved with their busy lives and schedules.

His favorite coin is the 1870-CC $20 Double Eagle, one of the rarest coins ever minted from the famed, and ill-fated Carson City Mint. Finding this coin in any grade is difficult and there is only one known specimen in AU-55. John is also a specialist in helping his clients with rollover accounts -- converting a portion of their IRA and 401k portfolios into precious metals. With gold and silver continuing to rise, now is the time to look at your options.  John's tenure with the company and knowledge of the precious metals industry sets him apart in the numismatic field. He is here for you and can answer most rare coin questions you may have.