The media badmouthing of gold and silver bullion that was unleashed by central banks throughout 2018 effectively stunted American Eagle coin sales last year. But so far this year, American Eagle gold and silver bullion coin sales are well ahead of last year’s January sales totals. An incredibly volatile stock market could be a big part of the reason for that, or growing global economic uncertainty, or perhaps the realization by many investors that all the while deterring investors from precious metals purchases in 2018, central banks were well on their way to becoming the year’s biggest bullion buyers.
Gold American Eagle bullion coin sales are ahead of last year’s totals at this point, while silver American Eagle bullion coin sales have already exceed 2018, by hundreds of thousands of coins. According to a recent report from the World Gold Council, “Investors worldwide will continue to seek gold in 2019 as a safe haven against inflation and other financial market pressures…While European growth has recovered from the aftermath of the sovereign debt crisis, it has failed to reach the level of the U.S. economy, making it more vulnerable to shocks…The price of gold see-sawed in 2018 as the U.S. dollar strengthened and the Federal Reserve raised interested rates several times.”
A report published Tuesday, by Scotiabank analysts says, a peak in the U.S. dollar and “toxic U.S. debt” should continue to support gold prices. In its 2019 forecast, Scotiabank said it sees gold prices averaging the year around $1,300 as prices are caught in a $150 range with the peak coming in at $1,350 an ounce.” Meanwhile, from the sideline of the Vancouver Resource Investment Conference, Kitco’s Global Trading Director, Peter Hug announced that “gold’s uptrend so far in 2019 has been more than seasonal, and the same macroeconomic forces that have been driving it could push it higher still.” Further, that “If the Fed reverses course again because the economy is slowing down, then I think we could have the same liquidity event we had in 2011, maybe not the same extreme, but I think you do see gold at maybe $1,450, $1,500 an ounce.”
Meanwhile, news reports coming out of the annual World Economic Forum in Davos, Switzerland are suggesting a rather gloomy picture for the coming year. So, traders are eagerly awaiting news from today’s regular monetary policy meeting of the European Central Bank, by way of ECB President Mario Draghi’s press conference. 2019 is going to be a difficult year, Call American Bullion, at (800) 653-GOLD (4653), in order to acquire gold and silver for your IRA or old 401(k) before prices start rising again.
Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.