GOLD 00.00 1.20 0.00%
SILVER 00.00 1.20 0.00%

Metal Market Report December 2021 - Week 1 Edition

December 2021 - Week 1 Edition

During November, Gold Staged a Quiet Rebirth while the stock market declined, and all of the other precious metals also declined. Gold stood out as an inflation hedge and a crisis hedge, as silver and the platinum group metals dropped on the lagging industrial recovery due to shipping port bottlenecks and supply chain disruptions, as well as COVID-19 outbreaks. The stock market was set for its traditional Thanksgiving rally and November gain, but “Black Friday” turned that around, and a “Blacker Monday” made matters worse.

During November, the U.S. Dollar Index gained 2.2%, making gold’s rise even more impressive. That means gold rose 4.2% (2.0% + 2.2%) in “currency-neutral” terms, and more than that in terms of the euro,

The Dow’s and Russell 2000’s recent declines – along with a value drop for Bitcoin - are a reminder that gold has been the only proven stable form of money for over 3,000 years of recorded history.  GOLD is traditionally considered the “last resort” when the paper money supply becomes inflated beyond any restraint, and federal spending and deficits become bloated beyond any historical precedent.  Gold is up 512% this century while silver is up 329%, the Dow is up 200% and the S&P is up 211%.

The U.S. Mint Continues to Meet Skyrocketing Gold Bullion Coin Demand

As you know, we have been tracking detailed monthly sales at the U.S. Mint for the past few years, but seldom have we covered the long-term picture. Now we learn, according to the World Gold Council (WGC), that gold bullion sales by the U.S. Mint are on track for the best year since 1999.

The U.S. Mint continues to outpace its strong sales record from 2020 and is on a track to reach its best sales year of the new century for gold bullion coins. During November, the Mint sold 126,000 Troy ounces of Gold American Eagles, up 48% from the 85,000 sold in November of 2020, and over 10 times the amount it sold in November of 2019 (just 11,000 ounces). For the first 11 months of 2021, the Mint has sold over 1.2 million ounces of Gold American Eagles, up 51% from 794,500 sold in the same period in 2020.

Buffalo 1-ounce gold coins sold at a pace of 39,000 ounces in November 2021, up 66% from November 2020, and the total Buffalo Gold sold year-to-date reached 339,500 Troy ounces, up 47% from the same period in 2020.

Silver American Eagle sales are roughly the same in 2021 at 28,198,500 ounces, year-to-date, as in 2020.  Both 2021 and 2020 Silver American Eagle sales totals are about double the sales in 2019.

Due to the recent declines in precious metals prices, none of the major banks or institutional investors is yet courageous enough to predict super-strong metals prices for 2022, but just wait until GOLD climbs to $2,000 per ounce and you will see the predictions discussing $2,500 and $3,000 gold all over again!  Call our professional account representatives today to find out the best buys currently available in our inventory.

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

Robert Patton
1st American Reserve Director

Robert has worked in the numismatics industry for 30 years and helped found 1st American Reserve in February 1998. He has worked since Day 1, for the past 23 years, to ensure the company is well-respected and serves its clients with professionalism and integrity.

Together, Robert and his wife have five children and he enjoys spending time with them. His favorite hobbies include cooking and hunting, sometimes combined by camping with his family. He has been a Boys Haven Board Member for many years and has volunteered in support of many of his children’s activities.

Robert is proud that 1st American Reserve has maintained an A+ rating with Better Business Bureau (BBB) and that they deliver award-winning industry materials and service to our customers. But Robert is most proud of his team of knowledgeable representatives, their tenure and the service they provide to their clients.

His favorite coins are those produced by the Carson City Mint and the $2 ½ and $5 Indian gold coins – many of which are included in our innovative 20/20 program. Of the Carson City coins, he says, “I appreciate the history surrounding the popular Carson City Mint and the relatively limited number of coins it minted, and I feel good about providing my clients with some of the best Carson City gold coins available.” Of the $2 ½ and $5 Indians, he says, “They are particularly beautiful and popular as they are the first incused design coins struck by the U.S. Mint.”

Robert is here for you. Please don’t hesitate to contact him.


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