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We had a chance to attend the NY Metals & Minerals Investment Conference recently at the Marriott Marquis in Times Square. The esteemed Dr. Ron Paul gave a keynote to this audience of mainly investors and executives about some topics very close to his heart.
He began the talk by recalling a conversation with the Federal Reserve then-governor Ben Bernanke.
Dr. Paul: Is gold money?
Dr. Paul: Then why do central banks hold so much of it?
Bernanke … (blank stare)
Incredulous? So is Dr. Paul, it seems. This is the type of dodging he expects from a central banker. Ron Paul has long argued that we should get rid of the Fed. When Bretton Woods broke down in 1971 (effectively terminating the US dollar’s convertibility to gold), the price of gold skyrocketed shortly thereafter. Since then, there has been a relentless expansion of the money supply in the US. In fact, it’s followed an almost perfect exponential curve!
Furthermore, Dr. Paul believes that the Fed’s wholehearted embrace of Keynesian Economics has set us on a path of unchecked spending that lined the pockets of the legislators and companies that directly benefit from the Military-Industrial Complex, but has bankrupted our country in the process.
“Our country went bankrupt and they haven’t admitted it”
As Dr. Paul says, people continue to take our dollars, but that will end, and probably soon. The CPI shows no inflation, but that metric masks a difficult truth that nobody seems ready to face.
He is also gravely concerned with the erosion of civil liberties over the past several years. In fact, it was his #1 concern when he left congress. Dr. Paul believes that protecting liberty and protecting your financial assets are one and the same. Ron Paul pushed for an audit of Fort Knox, but was never able to get it through congress. He strongly suspects that all the gold they say is there is not. He points to a case in which the Germans asked for their gold back and didn’t get it. And even if the gold is physically there, what’s to say it hasn’t been pledged to fund the government’s historic budget deficits we saw in the wake of the 2008 financial crisis?
When wrapping up this hour-long talk, Dr. Paul left the audience with one final thought:
“You should be buying the gold and holding the gold. It’s meant to be in the hands of the people.”
At CBMint, we are committed to having deep roots in the metals industry throughout every vertical step in the process — from the moment metals are unearthed, until the final, refined product is received by one of our customers. To meet that end, we maintain a host of paid advisors and consultants in every industry involved in precious metals, including mining, refining, minting, insurance, shipping, and product development.
Meet Tom S. Tom is a geologist and mining engineer, with university degrees in both. Tom has worked for state governments, fossil fuel companies, and precious metals mining companies in the past, but his passion is gold mining and he prefers to work by himself. Tom works with us at CBMint, keeping us abreast of changes in the gold mining industry, reports of new finds, extraction techniques, and, most interestingly to us, rumors about production levels. Tom is very well-connected, and serves as our eyes and ears in the gold mining industry.
We caught up with Tom last week, just before he left for the Alaska gold mining summer. These days, Tom chooses to work for himself instead of for one of the large mining companies. We were able to ask him some questions about his work in the past and future:
Q: So why are you going out on your own? Why not work for one of the large companies as you have in the past?
A: Well, two main reasons, I guess. Number one, I love the freedom and joy of being outdoors in Alaska during the summer. Number two, working for a firm wastes my skills as a geologist. Oh, sure, the company makes use of those skills, but those skills go to benefit others instead of myself. When I am mining by myself my knowledge and skills directly benefit me.
Q: What kind of mining are you planning this summer? Just gold? What type of operations do you run?
A: Well, over the last few years I have got to know most of the folks in the Alaska gold industry, including many claim owners. Owning a claim is owning the mineral rights to the land, you see? Not owning the land itself, which, in most cases, is state land. You would be amazed though, many claim owners do not understand the science behind gold and gold deposits. Many just find gold through brute force.
Q: What do you mean, brute force? What kind of gold mining takes place on most of these claims?
A: The claims I am going to work on are all placer deposits. Placer mining is mining alluvial deposits for small flecks of gold, and occasional gold nuggets. It has nothing in common with shaft or hard rock mining. Anyway, placer mining involves, in a basic sense, washing alluvial deposits, which contain small bits of gold, through sluices, where the heavier gold particles settle out. So when I said brute force, I mean many of these guys don’t know where to look on their claim, they just take all the overburden and run it through sluices. Not very precise, to be sure, but eventually gets the job done.
Q: So you are just working by yourself, on various claims? I assume you have to pay the claim owner?
A: Oh, yes, usually they take a percentage of the gold we find. Sometimes I perform geological surveys for the claim owner in lieu of giving him that percentage.
Q: So, the big question I have been waiting to ask you is, how much gold can you find or expect to find on this expedition?
A: Well, to be honest, it varies a lot. Back in 2010 and ‘11 I took a leave of absence from work to go placer mine for the first time. The claims I worked were pretty run out and poor, yet, with the price of gold being so high, I still made off pretty well. These days I am a lot more picky about the claims I work — I do a lot of surveys and research before I go up. A lot of claim owners can pull between 1 ounce of gold and 5 ounces of gold per day from their operations. I will not be bringing that equipment up there — that type of placer operation requires bulldozers, huge sluices, and dredges. But I would be surprised if I didn’t manage to pull an ounce of gold a day from these claims.
We certainly wish Tom the best of luck on his 2014 expedition! Hopefully Tom can send us photos and a report from the field, and we look forward to the stories and rumors he is able to send our way from the gold fields of Alaska.
Every week that passes, with low silver prices continuing, the more we continue to be bullish on silver. Many customers have been emailing and calling us, wondering “How long will silver prices stay low?” With no immediate sign of a huge silver price spike, we have been doing even more research than normal, looking at historical trends in the spot price of silver, and comparing commodity silver to other benchmark commodities. The entire focus of the May 2014 CBMint newsletter was advocating now being a great time to buy silver bullion.
Without rehashing too much of that material, please note that the gold/silver ratio, the ratio of the price of gold to the price of silver, is still very, very high — over 65. Silver and gold prices are intertwined and always have been. The relationship between the two is a useful tool for anticipating future silver and gold price movement. Historically, the GSR tends to narrow, often approaching 15, that is, gold is 15 times as expensive as silver. Clearly such a scenario would involve huge relative increases in the price of silver.
Many analysts are comparing the current low silver prices with the days when the price of silver per troy ounce was under $5. The similarities between the two historical periods run deep — recent sell-offs of gold assets, a high GSR, and recovering economy. Obviously, investors who were savvy enough to buy silver bullion in the $5 an-ounce days made tremendous gains. More and more, we are convinced that now is the time to concentrate on silver, and I, personally, have abandoned my balanced bullion portfolio to favor one that involves silver bullion products almost exclusively.
Today CBMint is announcing a giveaway to celebrate our newly reduced pricing on our most popular product, 2014 Silver Eagles. If our industry-leading prices aren’t enough, take this opportunity to win this iconic US Minted coin absolutely FREE.
1) Visit our offer page here: http://buy.cbmint.com/may-2014-giveaway/
2) Enter Your Name and Email Address
CBMint is excited to be able to offer our customers lower prices on many of our already-inexpensive products. Continuing our quest to be the best place to buy bullion online, we have reached out to several new suppliers of precious metals, some of which were able to offer us volume discounts. By taking advantage of these volume discounts, CBMint has been able to buy copper bullion, silver bullion, and gold bullion products in bulk. The cost savings that volume purchasing entails means that several popular products in our lineup have seen recent price reductions.
Included in this list are most of our copper rounds, which have seen a large decrease in price. Several common silver coins are also affected, such as the American Silver Eagle and the Austrian Silver Philharmonic. As always, we strive to have the lowest bullion prices in the industry and we look forward to negotiating even steeper discounts, which would allow us to reduce prices of bullion products even further. As always, we encourage you to Contact CBMint if you are looking to buy gold and silver products that are not in our current lineup — we will be happy to try to find them for you.
A significant change to the world’s most popular silver bullion coin is in the works. On April 8, the Citizens Coinage Advisory Committee (CCAC) recommended a change in the design of the reverse side of the American Silver Eagle, the premier silver coin on the market today, with sales expected to reach 50 million units in 2014 alone.
The US Silver Eagle has not changed since its 1986 inception, with each coin containing 1 troy ounce of silver that is 99.9% fine. The designs remain unaltered — Weinman’s Walking Liberty design is on the front and Mercanti’s Heraldic Eagle design is on the reverse. The CCAC-proposed design changes only concern the reverse. 44 unique designs were reviewed, but the clear-cut winner was a design previously considered for the 2015 US Marshal Service gold commemorative coin — another eagle-themed design, this time showing an eagle in flight, grasping an olive branch.
The next steps in the process are time consuming. The CCAC will ask the US Mint to prepare several examples of American Silver Eagles using the new design, each having slight differences. These designs will be again put before the CCAC for another round of selection and discussion. The selected Silver Eagle design then will move to the CFA, the Committee of Fine Arts, for review. After this committee, the Treasury Secretary of the United States will make the decision to keep the current design or to change to the new one.
Gold is off to a surprisingly strong start to 2014, to the dismay of many gold bears. After the precious metal had its first losing year in more than a decade in 2013, it is up more than 9% this year as of March 25th to $1,313.50.
Gold performed exceptionally poorly in in 2013, losing 27% of its value in a single year, as investors flooded into the stock market in droves, pushing the S&P 500 Index past its all-time high. But many are betting on gold’s continued rise in 2014 as stocks are looking increasingly expensive.
Some observers have suggested that the crisis in Ukraine has prompted speculative buying of gold bullion, but data from Google Trends suggests a weak correlation. Trading volumes in gold-backed ETFs has also been steady since the beginning of the year.
The more likely scenario is that gold is returning to growth after a particularly tough year. Strong consumer demand in emerging markets may also be playing a role. Demand for gold coins and gold bars has increased by 35% and 37% in India and China, respectively in the 12 months to September 2013, according to a CBMint analysis of data produced by the World Gold Council.
Conventional wisdom suggests that gold investments tend to do best when the stock market is falling. But even as stocks continue to break records for all-time highs, gold bullion remains resilient. If you compare gold to stocks over longer periods, the illustrious metal begins to look even more attractive.
Consider the value of $1 invested in Gold Bullion and another dollar invested in the stock market, each at the end of the year 2000.
|Value of $1.00 Invested in:||Gold Bullion||S&P 500|
Source: Kitco, Yahoo! Finance
Had you held a physical gold bullion investment since 2000, $4.79 today for every dollar invested at the turn of the millenium. The same $1 invested in the S&P 500 in the year 2000 would only be worth $1.83 today, and that’s assuming you reinvested all the dividends!
In summary, gold has proven to be a winning investment while its owners have endured substantially less gut-wrenching volatility, compared to owners of stocks over the past 15 years. In addition, much of this stellar performance occurred against a backdrop of historically low inflation. If inflation were to pick up again, as many smart people believe it will, this could spark yet another long bull run for gold.
CBMint has recently started to carry a range of copper bullion products, first focusing on copper rounds, with copper bullion bars to follow. Copper is a semi-precious metal, yet, like precious metals, is becoming scarcer and demand is increasing.
Copper prices exploded during the commodities boom of the last decade, and this did not go unnoticed by metals investors who buy bullion online. Investors noticed an immature market, and realized there were tremendous profits that could be realized by investing in copper bullion.
This began a modern-day copper rush, of sorts, with a profusion of new copper bullion bars and rounds entering the market. Many of these copper products were manufactured by the copper mines themselves.
Today, copper rounds and bars are produced by several established mints and refiners, including the Golden State Mint. At CBMint, we have decided to start with copper products made by the Golden State Mint because the quality and diversity of their copper rounds is really quite outstanding. Most of the copper rounds that are available are 1 ounce copper rounds, although fractional copper rounds and 5 ounce copper rounds are also common.
It is important to note that because copper bullion is priced by the standard pound, and not the troy pound, copper bullion rounds and bars are measured in Avoirdupois (avdp) ounces, and not troy ounces.
The design of copper rounds and copper bars varies, but generally, copper rounds are produced with some very beautiful and historically significant designs, making them collectible as well as valuable. Many of the US-manufactured copper rounds feature designs that highlight significant themes in American history.
Currently, we are experiencing a downswing in the price of copper, and we expect to see those copper prices trend upwards in the future. This makes now a great time to buy copper bullion online, allowing you to take advantage of low copper prices and position yourself to make a large profit during the next big commodities boom.
The Royal Canadian Mint has always been energetic about producing special and commemorative silver bullion coins. With the completion of the most recent issues of their Wildlife Series of silver coins, the Royal Canadian Mint has decided to follow on with a new series of four coins titled the “Bird of Prey Series”. Each of the 4 silver coins in the series will feature a Canadian different bird of prey. They are scheduled for a biannual rollout, meaning two unique coins of the series will be released each year, for two years total. First in the series is the majestic 2014 Peregrine Falcon silver coin.
Like the Silver Maple Leafs, these 1 Ounce Bird of Prey coins are legal tender in Canada and have a nominal face value of 5 Canadian Dollars. The obverse is similar to the Silver Maple Leaf, showing Queen Elizabeth II in profile, along with the mint date. The reverse was created by Emily Damstra and has a stunning strike of a peregrine falcon in mid-flight, swooping down upon its prey. The peregrine falcon is an amazing hunter, able to exceed 200 miles per hour in flight. Due to its incredible hunting ability, the peregrine falcon is considered a potent symbol in many cultures. In addition to this beautiful depiction of the peregrine falcon, the reverse of the coin also displays the silver purity and weight of the coin.
Like most Royal Canadian Mint silver coins, the 2014 Silver Bird of Prey series are struck from 99.99% pure silver, higher than most silver bullion coins. Planned production for each coin in the series is only 1 million units, which will be quickly snatched up by collectors who treasure the numismatic value of rare coins like this, as well as investors who buy silver online. Adding gorgeous silver coins like these to your bullion portfolio surely makes it stand out.
CBMint is proud to feature the 2014 Canadian Silver Peregrine Falcon coin. It is a great silver bullion coin that already has widespread appeal. Buy one today!