Beginning in December 2017 there was a change on the horizon for the gold market – the physical gold market. Over the past ten years there we had watched the collapse of the mining industry and it seemed what was happening would make its presence known in 2020. We had no idea how right we would be.
Over the past two years we have made it a habit to remind people of these facts and let them know what we were doing, why we were doing it and if they wanted to come along for the ride it would be welcomed companionship.
The gold market has morphed and changed dramatically over the past two years. The mining sector began eating it’s own in late 2018 and accelerated their efforts as 2019 progressed. At the time we pointed out this was a significant change and pointed to the fact that a lack of R&D by the major mining companies for more than 10 years was now taking it’s toll and the mining industry was in a serious situation.
We also began gathering in 1/4 AGE (American Gold Eagles) and 1/10 AGE’s as we had been watching the mintages for the past several years and the trend was down – lower and lower mintage for both coins. Good news if you like to gamble – we do. We believed then, and believe more so today these coins will command a higher premium as the market begins to seize-up from a lack of newly mined gold and a lack of recycled gold. Neither of which will be coming to market in quantity any time soon. As we have reported just last week
Chris Marcus: Gold / Silver Disconnect Paper Illusions from Physical Realities
No Gold For You! None For You! None For You! No Silver Either!
Alasdair Macleod: Gold / Silver Supply Chain Will Be Broken For Months
And back on January 6, 2020 we penned – The State of Physical Gold and Silver in 2020 where we stated…
In 2020 it seems we really need to make some moves very early in the year, otherwise, we will find ourselves, as I did in 2019, leaving a bunch of fiat currency on the table. It’s best to avoid that situation, however, it seemed prudent at the time to wait as I was watching the sales of quarter ounce AGE’s (American Gold Eagles) and wanted to be assured this played out the way I had anticipated. In 2020 let’s reverse that thought and see how it works. Betting on low mintage of AGE coins is one my favorite bets.
We are anticipating another year of very significant chart moves in both gold and silver. We believe that as the year progresses both metals will reach for much higher chart levels. This means gathering in any physical metal now, in January and February, may be the way to go. Watching for pullbacks is going to be a key element during 2020 to keep as much powder dry as possible. It seems almost impossible, not saying that is impossible, to see either of the metals price retreat much lower from where we find them today. Let’s not forget there is that massive bet that was placed for $4,000 gold by June 2021. That would require an upside move of $1,000+ during 2020.
