In this market update video Mike Maloney looks at the current action in the precious metals markets.
He covers mainly what is going on with premiums on coins, including:
- How premiums on coins from the major mints are dropping currently as the mints catch up (and from what we are experiencing here in NZ and hearing from our overseas contacts, while demand has also dropped off for physical gold and silver).
- How the US mint is likely to shut down early this year to retool for next years coins.
- How this could cause another shortage in US Mint silver eagles in the coming months.
- How and why premiums have risen as prices in the futures market have fallen.
- Comparing this to what recently happened in Walmart stocks and how the bid/ask spread changed.
- How we could still see more deflation before inflation kicks in.
- Why gold and silver could fall on the futures exchanges initially if this happens but you’ll likely still have to pay higher prices to get physical precious metals.
- How people will likely then still rush into gold and silver amidst general deflation and we will see “unaffordium” and “unobtanium”.