Best of the Week
Most Popular
1.What Happened to the Stock Market Crash Experts Were Predicting - Sol_Palha
2.London Housing Market Property Bubble Vulnerable To Crash - GoldCore
3.The Plan to Control ALL Your Money is Now at Advanced Stage
4.Why Gold Is Set For An Epic Rally This Spring - James Burgess
5.MR ROBOT NHS Cyber Attack Hack - Why Israel, NSA, CIA and GCHQ are Culpable - Nadeem_Walayat
6.Emmanuel Macron and Banking Elite Win French Presidential Election 2017 - Nadeem_Walayat
7.Trend Lines Met, Technical's are Set - US Dollar is Ready to Rally (Elliott Wave Analysis) - Enda_Glynn
8.The Student Debt Servitude Sham - Gordon_T_Long
9.Czar Trump Fires Comey, Terminates Deep State FBI, CIA Director Next? - Nadeem_Walayat
10.UK Local Elections 2017 - Labour Blood Bath, UKIP Death, Tory June 8th Landslide - Nadeem_Walayat
Last 7 days
The Stock Market Will Tank Hard - 24th May 17
It’s Better to Buy Gold & Silver When It DOESN’T Feel Good - 24th May 17
Global Warming - Saving Us From Us - 24th May 17
Stock Market Forecast for Next 3 Months - Video - 23rd May 17
Shale Oil & Gas Production Costs Spiral Higher As Monstrous Decline Rates Eat Into Cash Flows - 23rd May 17
The Only Metal Trump Wants More Than Gold - 23rd May 17
America's Southern Heritage is a Threat to the Deep State - 23rd May 17
Manchester Bombing - ISIS Islamic Terrorist Attack Attempt to Influence BrExit Election - 23rd May 17
What an America First Trade Policy Could Mean for the US Dollar - 22nd May 17
Gold and Sillver Markets - Silver Price Sharp Selloff - 22nd May - 22nd May 17
Stock Market Volatile C-Wave - 22nd May 17
Stock Market Trend Forecast and Fear Trading - 22nd May 17
US Dollar Cycle : Deep Dive - 21st May 17
Bitcoin Breaks the $2,000 Mark as Cryptocurrencies Continue to Explode Higher - 21st May 17
Stocks, Commodities and Gold Multi-Market Status - 21st May 17
Stock Market Day Trading Strategies and Brief 20th May 2017 - 21st May 17
DOW Needs to Rally Big or Correction is Next - 20th May 17
EURUSD reaches DO or DIE moment! - 20th May 17
How to Get FREE Walkers Crisps Multi-packs! £5 to £28k Pay Packet Promo - 20th May 17
UK BrExit General Election 2017 - Will Opinion Pollsters Finally Get it Right? - 19th May 17
Gold Mining Junior Stocks GDXJ 2017 Fundamentals - 19th May 17
If China Can Fund Infrastructure With Its Own Credit, So Can We - 19th May 17
Evidence That Stocks are More Overvalued than Ever - 19th May 17
Obamacare May Become Zombiecare In 2018 - 19th May 17
The End of Reflation? Implications for Gold - 19th May 17
Gold and Silver Trading Alert: New Important Technical Development - 19th May 17
Subversion And Constructive Synthesis Of Capitalism And Socialism - 18th May 17
Silver: Train Leaving Station Soon! - 18th May 17
Credit and Volatility Signal That Financial Conditions Are Very Overheated - 18th May 17
Another Stock Market "Minsky Moment" or Will the Markets Calm Down? - 18th May 17
WannaCry Ransomware Virus Is a Globalist False Flag Attack On Bitcoin - 18th May 17
Euro, Stocks, Gold Momentum Extremes All Round! - 18th May 17
US Stock Market Slumps on Establishment / CIA Trump Impeachment Coup Plan - 18th May 17
Tory Landslide, Labour Bloodbath - Will Opinion Pollsters Finally Get a UK Election Right? - 17th May 17
The stock market sectors which are breaking out in 2017 - 17th May 17
A ‘Must-See’ Chart for Gold and Silver Aficionados  - 17th May 17
Will the SPX Stock Market Final Surge Fail to Appear? - 16th May 17
Claim your FREE copy of Jim Rickards’ explosive book - 16th May 17
GOP Establishment Elite Plots Trump Removal - 16th May 17
Walkers Crisps Pay Packet Cheats, Shoplifters and Staff Conning Customers - 16th May 17

Market Oracle FREE Newsletter

Trading Commodity Markets

How Investors Can Buy Gold At A 6% Discount Today

Commodities / Gold and Silver 2017 Apr 17, 2017 - 05:34 PM GMT

By: HAA

Commodities

Stephen McBride : Since the election, the Dow Jones Industrial Average is up over 13% while the S&P 500 is up 11%. One victim of the move into risk assets was gold, which plunged over 13% in the weeks following the election.

Although gold prices have since recovered some of their losses, the yellow metal’s drop has created a buying opportunity for those wanting to add bullion to their portfolios.


US Demand for Gold Is Weak

As the post-election rally roared through December, gold bullion sales from the US Mint had their second-worst month since May 2015.


Source: US Mint

The weakness in demand has continued into the first quarter of 2017, with sales down 30% year over year.


Source: US Mint

One consequence of weak demand is that premiums on gold bullion—the amount per ounce you pay over the spot price—have fallen.

For example, premiums on one of the most popular gold coins, American Eagles, have dropped by 6% since January. That puts premiums at their lowest levels since November 2016.


Source: Sharelynx.com

This drop effectively acts as a discount for investors looking to purchase gold bullion. However, with a number of bullish gold trends in motion, demand looks set to increase… which in turn will push up premiums.

The Reflation Trade Is Starting to Reverse

Beginning in October, stock markets enjoyed 109 trading days without experiencing a 1% decline—the second longest in history.

However, that run was broken in March, and the arrest seemed to mark the point at which markets started questioning the viability of the reflation trade. The S&P 500 had its worst month since the election, ending down 1.3%, with heaviest trading in declining sessions.

In a reversal of fortunes, the 10-year Treasury yield, which moves inversely to its price, is down over 8% since the beginning of the month.

Add to it the fact that gold demand from India—the world’s second-largest consumer of gold—was up 175% year over year in February, and you get a very bullish picture for the yellow metal.

A Buying Opportunity

As a result of these trends, gold is up over 5% since early March and almost 9% this year. If stocks continue to correct, gold will likely move higher. This, in turn, will cause premiums to rise.

So, if you’ve considered buying physical gold, now is the right time to do so. But you should act fast while the “discount” is still available.

Get a Free E-book on Precious Metals Investing

Before you buy physical gold, make sure to do your homework first. You’ll find everything you need to know in the definitive e-book, Investing in Precious Metals 101. Learn which type of gold you should buy and which type you should stay away from, where to securely store your gold, why pools aren’t safe places, and much more. Click here to get your free copy now.

© 2017 Copyright Hard Assets Alliance - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable,


© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife