Dave Gonigam

It’s not only gun sales that spiked after Election Day. So did the sale of Gold Eagles from the U.S. Mint.

While Eagle sales hardly set a “record” last month, as touted at the Drudge Report, they did turn in the best number since July 2010, and the best November since 1998. The final figures out this morning from the Mint indicate 136,500 ounces.

“There is a huge influx of new high-net-worth individuals that are buying a lot of gold, and they are taking physical possession of it,” David Beahm tells Reuters: He ought to know: He’s vice president at bullion retailer Blanchard & Co. “This quarter,” he adds, “is shaping up to be one of the best since the last quarter of 2008.”

Hmmm, we seem to recall something about the world coming to an end back then…

The rolling 30-day average of sales, measured in dollars, does indeed look impressive on a chart going back to February of this year and likely prompted Drudge’s careless headline…

Anonymous “analysts” reaching for explanations are chalking it up to “political uncertainty due to a heated U.S. presidential race and $600 billion automatic cuts in government spending and tax increases early next year,” according to Reuters.

Ah, yes, the fiscal cliff — the handy explanation for everything from growing gold sales to an epidemic of nail fungus…

On the other side of the world, a new catalyst for gold is taking shape in China. Banks there can trade gold among themselves over the counter, starting today.

“From a government perspective, gold is seen as currency, and the government is slowly releasing the controls on currency. We expect the [gold] market will be opened up to more foreign banks,” Standard Chartered global chief of metals trading Jeremy East tells The Wall Street Journal.

Indeed, Mr. East says China aims to build up Shanghai into a competitor with London as a major gold trading center.

Next step: the development of a gold ETF to trade on the Shanghai Stock Exchange.

Cheers,
Dave Gonigam

The preceding article was excerpted from Agora Finacial’s 5 Min. Forecast. To read the entire episode, please feel free to do so here.

Dave Gonigam

Dave Gonigam has been managing editor of The 5 Min. Forecast since September 2010. Before joining the research and writing team at Agora Financial in 2007, he worked for 20 years as an Emmy award-winning television news producer.

Recent Articles

Solar to Save the World, Ebola to Maim it

Chris Campbell

The duality is stark. In one hand, we have an energy renaissance underway, in the other, a virus is threatening to wreak havoc on the markets and, potentially, your life. Nothing we’re currently doing to fight the Ebola virus will work in 2014, say the researchers. Nothing we’re currently doing will beat it in 2015, either. We need a new game-plan. Read on…


How to Profit From the “Cycle of Hype”

Greg Guenthner

Lose your shirt in 3D printing stocks this year? Don’t kick yourself. You’re not alone. (Okay, kick yourself a little if it’ll make you feel better.) You need to make sure you don’t lose your 3D-printed shirt in the next tech craze. Because there will be a next time. Look, it’s really not your fault if you got taken for a ride on 3D stocks. Greg Guenthner has more...


From Creditopia to Utopia

Richard Duncan

Our friend Richard Duncan believes the U.S. economy requires credit growth to survive. Here, you’ll see what he thinks will happen if the U.S. doesn’t continue expanding credit. You’ll also find exclusive footage we shot in the Daily Reckoning’s studio explaining how the U.S. could lose it’s global dominance… and how programs like Social Security or Medicare could go bust...


Video
Why Democracy Won’t Survive the New Depression

Richard Duncan

The hum of the printing presses and the steady drip of cheap credit over the past five years made it easy to believe the U.S. economy was in a true recovery. But what happens when the excess liquidity begins to dry up?


Your Personal Gold Standard

James Rickards

All paper currency has a shelf life. It could be 5 years or 500 years, but at some point, the value of any paper currency eventually reaches zero. That's why, for centuries, people have turned to one shiny metal to safeguard their personal store of wealth. And, as Jim Rickards explains, you still have that option. Read on...


Don’t Blame Obama (He Has No Power)

Chris Campbell

The Americans who voted for Obama were expecting some big changes. But, six years later, the government he acquired has only spied harder, the drones have flown lower, and the weapons have gotten bigger. But don’t blame Obama. Read on…