Many precious metals investors have a portfolio split mainly between gold and silver, with maybe a little bit of platinum and palladium to increase diversity. Platinum, the king of the precious metals, has seen its price drop well below that of gold, causing many investors to allocate more of their portfolios to platinum.
The rarest of the big three precious metals, platinum is whitish in color and malleable. Compared to gold and silver platinum has a much shorter history in the financial sector, yet platinum is steadily becoming one of the most profitable hedges against inflation in the marketplace.
Platinum metal investing comes in a variety of types including coins, exchange traded products on the New York Mercantile Exchange and Swiss Bank accounts that offer the investor immediate buying and selling of platinum as a form of currency. Of the pure bullion forms, platinum coins have become more popular in recent years. While platinum is one of the scarcer precious metals and comes in many different forms, there are some advantages of investing in platinum coins and owning them.
In growing markets, platinum attains a noteworthy fiscal premium over other precious metals. Since this precious metal is used in many consumer goods, demand for platinum can rise significantly, making it a profitable short or long-term investment. Gold and silver prices do not fluctuate as much as platinum prices (or rhodium prices), creating more possibilities for investors to make large, short-term gains.
We investors tend to speak of silver prices as a single, immutable metric. However, there are actually several different ways to calculate the price of silver. Most people, when they speak of the price of silver, are referring to the published electronically-traded COMEX silver index.
A rush to stocks helped silver prices plummet more than 70% between 2011 and 2015. The listed price I am referring to is, of course, the COMEX price. Buying physical silver always carries a price premium, as physical silver has transportation and storage costs associated with it. Generally speaking the premium for owning physical silver is large, and the COMEX price lags behind it significantly, and this lagging is not due to actual demand for the metal.
Low silver prices and increased consumer awareness have seen demand for physical silver skyrocket. The United States Mint even ran out of Silver Eagles in the middle of 2015, unable to keep up with investor demand. Why were silver prices still falling when investor demand for the physical metal was at an all-time high?
Upcoming Shortage of Physical Silver?
Low electronic silver prices have helped cause investors to ditch stocks in silver mining companies, despite the large investor demand for the metal itself. Many of these mining companies have seen their stock prices plummet along with the per-ounce price of the metal they are mining. Many companies went bankrupt, others have scaled drastically back on their silver mining operations. Combined with sustained silver demand, this can mean only one thing: the supply of physical silver will continue to shrink.
The gap between the low electronic price of silver and the higher premiums already being carried by physical silver products cannot stay far apart for long. Rising demand and shrinking silver supplies will eventually cause a correction in the market, seeing even electronic silver prices exploding upward.
Overnight trading in Asia saw gold prices spike to a three and a half month high, mainly due to drifting expectations of when the United States would raise interest rates. Gold prices were even able to briefly break a key resistance barrier.
The price of gold rose above $1,174 at one point, breaking through August’s high watermark of $1,170 per troy ounce. Many alalysts view this as a critical test for gold prices, as traders often choose to bail out of rallies at such technical benchmarks. These price benchmarks, therefore, tend to act as a ceiling on upwards price swings. Breaking clear of such thresholds usually indicates a stronger price surge to come.
Future Interest Rate Hikes in US Driving Price Surge
As a purely financial investment, gold is a non-yielding asset and benefits from low interest rates. Most of the recent demand investment demand for gold is wrapped around the notion that the Fed is unlikely to raise interest rates in the near-term. Worse than expected retail sales figures from the United States have caused the dollar to fall to a 3 1/2 week low. This sign of decreasing consumer demand, coupled with a Fed Beige Book report showing tightening labor markets in the US, is pushing the the gains in the precious metals markets.
The Privateer Silver Rounds from the Elemetal Mint are a new series of two ounce silver rounds featuring nautical themes. CBMint.com is excited to carry the newest in the series — the Siren 2 Ounce Silver Round.
The unique and stunning feature of the Privateer Silver Rounds is the ultra-high relief in which each round is struck. Silver rounds, like silver coins, are usually struck in low-relief with high-relief examples quite rare, such as the early 1921 Peace Dollars. The fact that the Elemetal Mint went through the added complexity and expense to strike these rounds in high-relief shows their continued dedication to producing market-leading products.
Gold prices continued their weeks-long slide, with many traders awaiting the decision of the US Federal Reserve regarding a potential interest rate hike. The biggest question for traders is “does the Fed view the current labor and inflation dynamic as having met their conditions for a hike in rate?” said Erik Gebhard, a co-founder of Altavest Worldwide Trading.
The two-day policy meeting of the Fed concludes this Thursday, with most traders reluctant to make significant bets on gold before learning the result. Consequentially, trading volumes have been low this week. If interest rates are lifted, even slightly, the appeal for gold as an investment vehicle will decline, as gold does not bear interest.
Of course, for investors who are looking to purchase gold as a long-term investment, the news could be welcome, allowing them to purchase physical gold at a cheaper price.
We are very proud to announce that CBMint is now on the App Store, for free. You can now buy precious metals, look up the spot prices, stay up to date on what’s going on in the industry, and learn about investing, right on your mobile device or tablet. The CBMint App guarantees a secure and streamlined shopping experience, accessible directly from your iPod touch, iPhone, or iPad’s home screen.
You will find your favorite CBMint.com features on the CBMint App, and will be able to access them wherever you are – our entire product catalog, checkout process, and account management is right in your pocket. You can even continue editing your shopping cart with products added separately through the website.
We are proud to have designed and developed the App in-house, in order to offer another high quality platform through which our customers can continue enjoying the products offered by CBMint.
The United States Mint is nearly ready to begin long-awaited shipments of 2015 American Silver Eagles. Starting January 26th , the Mint shall begin the first shipments of 2015 Silver Eagles to approved distributors.
Be the First to Buy 2015 American Silver Eagles
Given the extremely low silver prices, distributors have been routinely selling out of Silver Eagles. Expect the high demand to continue through the first part of the new year — buying 2015 American Silver Eagles may be difficult, as initial supplies will be scare and the US Mint’s production capacity is not able to keep up. You can pre-order and secure a shipment when you buy Monster Boxes of 2015 American Silver Eagles online from CBMint — by pre-ordering, you ensure that you will receive one of the first Mint allocations of 2015 Silver Eagle coins.
Design of the 2015 American Silver Eagle
Other than the mint date, the 2015 US Silver Eagle shares its design motifs with all other years of Silver Eagle coins. However, this may soon be changing. As soon as 2016, US Silver Eagles may see a significant design change on the reverse. Last April, the Citizens Coinage Advisory Committee (CCAC) recommended that the reverse side of US Silver Eagles be replaced with a new design. If the proposal goes forward quickly, 2015 may be the last year of 1 Ounce American Silver Eagles that features the traditional design.
CBMint is happy to be one of the few places online to buy 2015 Burundi Silver Lion coins! Each coin contains 1 troy ounce of .999 fine silver and are now the official silver bullion coin of the Republic of Burundi, with a face value of 5000 Francs. Burundi is located in the Serengeti, in East Africa, and is home to much of the hunting ground of the African lion.
New to the Zoo, But not for Long!
The 2015 1 ounce silver Burundi Lion coin is the newest member of the African Lion series of silver coins. These Commemorative Silver Coins are meant for both silver bullion investors and for collectors. The latter group especially prizes these coins for their rarity — 1 oz Silver Burundi Lion coins are limited to a total worldwide mintage of only 50,000 pieces, meaning they may soon become as rare as the very African lions they honor.
A Very Cheap Silver Bullion Coin
Amazingly, for an official, government-backed silver coin with legal tender status, the silver 2015 Burundi Lion has a very low premium over the current silver spot price, making them extremely affordable pieces. Often, commemorative silver coins (due to the low mintages) are quite expensive — this simply is not the case with the Silver African Lion series of coins. Buy Burundi Lion coins now while supplies are still available!
Christmas is only a few weeks away — if you are stuck trying to find a gift for somebody, why not consider silver or gold bullion as a gift? Silver and, especially, gold coins have been common gifts for centuries. Birthdays, graduations, weddings, and, yes, Christmas, are all great occasions for giving a valuable silver or gold gift.
What Silver and Gold Products Make the Best Gifts?
Most commonly purchased bullion products to be used as gifts are silver coins and gold coins, and no wonder — bullion coins struck by sovereign mints are not only valuable, they are often very beautiful, with either historic or commemorative designs. Many highlight local animal life, such as the Chinese Panda series of coins, or the Canadian Wildlife series. Given in such situations, these bullion coins are not merely a store of wealth, they also make memorable gifts.
Other silver, gold, or platinum products can also make wonderful gifts, especially specialty products. Have a hunter in the family? Buy a silver duck call — it’s fully functional, yet also contains nine ounces of .999 pure silver. Know a history buff or firearms enthusiast? Look at the wide range of highly-detailed silver bullet replicas. They come in different sizes, yet all are near-perfect replicas of various firearms cartridges and are milled from .999 pure silver, as well.
Prefer to give gold as a gift for Christmas? Look at CBMint’s range of small gold bars. They are small enough to be inexpensive, yet still contain 99.9%+ pure gold and are a great way to introduce gold investment to someone.
Giving gold and silver as gifts has been popular for eons. Join in the tradition and check out the huge number of products on CBMint!
Going along with the CBMint pre-order promotion on 2015 Silver Eagle Monster Boxes is a one day Cyber Monday sale — for that day only (Monday, December 1), you can buy Monster Boxes of 2015 American Silver Eagles for only $1.99 above spot per coin! That is the lowest price on Silver Eagle coins anywhere. Combined with the standard CBMint free shipping and insurance, it is the absolutely cheapest way to buy Silver Eagle coins online.
Supplies of 2014 Silver Eagles are starting to run out, so pre-ordering a Monster Box of 2015 Eagles is a great way to lock in today’s low silver prices. Go to the 2015 Silver Eagle Monster Box page on CBMint to learn more!