GOLD 00.00 1.20 0.00%
SILVER 00.00 1.20 0.00%

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Metal Market Report February 2022 - Week 4 Edition

February 2022 - Week 4 Edition

Gold is over $1900!

Gold is over $1,900 for the first time in eight months due the anticipated war between Russia and Ukraine. Gold spiked to $1,912 Monday night. The last time gold closed above $1,900 was June 2, 2021, and the last time gold closed above $1,910 was January 7, 2021, so we are close to a 13-1/2 month high. The stock market fell sharply Tuesday but rallied toward the end, with the Dow falling 482 points.

I Met Texas Governor Greg Abbott

Last week, I had a chance to meet Texas Governor Greg Abbott, once again. When he was Attorney General for Texas, I worked with him on Consumer Alerts to protect gold and silver coin customers against fraud and counterfeit coins, and I also worked with Texas Attorney General Ken Paxton on similar issues involving consumer protection. It was a pleasure catching up with the governor again in person.

The Difference Between “Sight-seen” vs. “Sight-unseen” Coins Can Be Great

It’s important to understand that any coin price guide is forced to make generalizations about prices within a certain coin’s date, type and grade, but not all coins within those categories are equal – not by a long shot, sometimes. There are differences in strike and toning, for instance, that call out the unique beauty of a coin. That’s why it is important to actually look at each coin in the rare and antique category to make sure a coin is not borderline for the grade before we offer it to our clients.

Many coin companies sell just any old coin in the grade as a “sight-unseen” coin within that grade. They are not being fraudulent when they do this. The coin is an honestly graded coin by a major grading service, but it has not been closely eyeballed by a trained numismatist to make sure it is a low-end specimen within the grade. By contrast, all the rare coins and antique coins that we accept from our distributors are reviewed by me or Team Mike numismatists. We have seen and approved each coin for eye appeal and quality within the grade. We look for good luster, striking details and minimal bag marks.

For two decades, I taught courses on grading and authentication at the American Numismatic Association (ANA), and I also graded coins at the two leading grading services. This means that your Team Mike advantage is that you have someone reviewing the coins you buy who has respected expertise in grading and evaluating the coins you are receiving. I have received unprecedent recognition over the last 40 years, and in just the past year as 2021 ANA Dealer of the Year. I also received the Al Kreuzer Memorial Award Medal for “Outstanding contributions in the efforts to combat counterfeit coins and currency” from the National Coin and Bullion Association (NCBA). Recently, I appraised the collection of a local church pastor and unfortunately his entire collection was fake, probably made in China. He should have dealt with the Team Mike experts.

So, when buying coins, make sure your dealer has been recognized as an expert or you could be paying sight-seen prices for sight-unseen coins and possibly get counterfeit coins in counterfeit holders. This could make a big difference in the price you receive for your coins if, and when, you sell them in the future. Remember, if you see prices a little lower from a competitor for the “same” coin in the “same” grade, it might not be the same quality of coin. It might be a sight-unseen coin, not our “sight-seen” coins.

If the Fed Raises Rates “Too Many Times” (as in 2018) – Gold Could Soar Again

In recent editions, we have pointed out that gold has risen during the Fed’s last three rate-rising cycles. We can now bring that story up to the last year the Fed raised rates, in 2018, with the market reaction.

This year, I see gold reaching $2,200 and Goldman Sachs sees gold rising to $2,150. They also see the Fed raising interest rates SEVEN TIMES this year, from 0.25% to about 2.0%, so they know that gold can rise when rates rise, but history shows that when the Fed raises rates too far, gold can soar while stocks collapse. In 2018, the Fed’s fourth and final Fed Funds rate increase came on December 19, 2018, and it sent the stock market down rapidly, while supercharging the precious metals. Gold rose from $1,246 the day before the rate increase of December 19, gaining $35 per ounce (+2.8%) to $1,281 by year’s end, while stocks fell.

This could happen again this year, too, if the Fed went too far and raised interest rates four or more times.

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

John Linscomb, a Sr. Account Representative at 1st American Reserve, joined the company 17 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.


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