Gold activity and central banks

Central banks have been particularly hard hit by the low and negative interest rates on sovereign bonds, with institutions like the European Central Bank in its sixth year of negative interest rates (Germany, Japan and the UK have negative or low rates, and global negative yielding debt is now around 16.5 trillion USD). Bonds make up a large proportion of reserve assets for many central banks — as a result they remain net purchasers of gold year-to-date, around 220.6 tonnes, in an addition…

Central banks have been particularly hard hit by the low and negative interest rates on sovereign bonds, with institutions like the European Central Bank in its sixth year of negative interest rates (Germany, Japan and the UK have negative or low rates, and global negative yielding debt is now around 16.5 trillion USD). Bonds make up a large proportion of reserve assets for many central banks — as a result they remain net purchasers of gold year-to-date, around 220.6 tonnes, in an addition…

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The US election result and the gold price

After a tense few days of vote counting, the drama of the US election has come has reached some sort of conclusion, with Joe Biden president-elect and Donald Trump thus far failing to concede. For us, the question is how the result will impact the gold price, and more broadly, how it will be affected by the Democratic president after his inauguration on 20 Jan 2021. The simple answer is that regardless of who had won the presidency, we would argue…

After a tense few days of vote counting, the drama of the US election has come has reached some sort of conclusion, with Joe Biden president-elect and Donald Trump thus far failing to concede. For us, the question is how the result will impact the gold price, and more broadly, how it will be affected by the Democratic president after his inauguration on 20 Jan 2021. The simple answer is that regardless of who had won the presidency, we would argue…

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What decides the price of a coin?

In addition to the simple explanation of supply and demand, the price of a coin is dependent upon several other factors, often specific to each individual coin. When determining a coin’s value, we can rely on the 5 key steps laid out in this article: authenticity, condition, popularity, provenance, and rarity. It is also worth noting that the role of third-party grading services in the coin industry has added yet another aspect to establishing the value of coins, with graded…

In addition to the simple explanation of supply and demand, the price of a coin is dependent upon several other factors, often specific to each individual coin. When determining a coin’s value, we can rely on the 5 key steps laid out in this article: authenticity, condition, popularity, provenance, and rarity. It is also worth noting that the role of third-party grading services in the coin industry has added yet another aspect to establishing the value of coins, with graded…

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Gold outlook and semi-collectable gold coins Webinar

Here is the registration link to Webinar #2 on Friday 24 April, 8PM UK time, again on Zoom. A big thank you to all of you who made our first webinar a huge success! Special thanks to the Silver Forum members who had lots of questions and kept the chat active. For those who did not make it, here is what was said about the gold market and price expectations in the short and long term.  Although this was now almost a month…

Here is the registration link to Webinar #2 on Friday 24 April, 8PM UK time, again on Zoom. A big thank you to all of you who made our first webinar a huge success! Special thanks to the Silver Forum members who had lots of questions and kept the chat active. For those who did not make it, here is what was said about the gold market and price expectations in the short and long term.  Although this was now almost a month…

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Coronavirus and gold update

Stock market turmoil in recent days has produced some of the biggest moves in history for EUROSTOXX and others (S&P500) since the 1987 crash. The S&P500, for example, lost at its worst 26.9% from all-time highs made only a few weeks ago. In this context, gold has also had one-day big declines, most notably at the end of February, dropping $82.00 in one session (5.6% intra-day), and then this Friday another big one-day fall of 4.8%. But within that period…

Stock market turmoil in recent days has produced some of the biggest moves in history for EUROSTOXX and others (S&P500) since the 1987 crash. The S&P500, for example, lost at its worst 26.9% from all-time highs made only a few weeks ago. In this context, gold has also had one-day big declines, most notably at the end of February, dropping $82.00 in one session (5.6% intra-day), and then this Friday another big one-day fall of 4.8%. But within that period…

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A golden decade lies ahead

The start of a new decade sees Gold at 6 year highs in US Dollar terms. Geo-political tensions have triggered a flight for safe-haven assets such as the yellow metal. Even if this had not been the boost to the start of this year, there are many reasons why gold should do well, not only this year, but as an overall theme for the coming decade. Weekly Gold chart in USD with 13 week moving average The Chinese have a…

The start of a new decade sees Gold at 6 year highs in US Dollar terms. Geo-political tensions have triggered a flight for safe-haven assets such as the yellow metal. Even if this had not been the boost to the start of this year, there are many reasons why gold should do well, not only this year, but as an overall theme for the coming decade. Weekly Gold chart in USD with 13 week moving average The Chinese have a…

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Three amazing things about our new auction platform

This weekend we launched our new auction platform which is now accessible through our website:https://auctions.thecoincabinet.com/ This platform will enable us to improve the service we provide and ameliorate our customers’ experience and the reasons why are set out in this article. 1. The Buyer’s Premium is 0 %. Our ‘eBay style’ auctions stand out in a market where other companies are increasing their fees and commissions. We are able to take this important step as it is a financially prudent move…

This weekend we launched our new auction platform which is now accessible through our website:https://auctions.thecoincabinet.com/ This platform will enable us to improve the service we provide and ameliorate our customers’ experience and the reasons why are set out in this article. 1. The Buyer’s Premium is 0 %. Our ‘eBay style’ auctions stand out in a market where other companies are increasing their fees and commissions. We are able to take this important step as it is a financially prudent move…

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Top three risks of selling gold sovereigns on Ebay

Selling gold Sovereign coins on eBay £1 listing offers? What looks like a great opportunity to sell gold coins with minimal selling costs may end up a costly lesson. In my experience, eBay is not a safe place to sell gold coins online. In 2019 many gold sovereign collectors became familiar with the biweekly eBay auctions put on by one of my several user IDs, including for example SovereignStacker_2018, SovereignCollector, and AndreasAfeldt. I prided myself in giving collectors, investors, traders and stackers…

Selling gold Sovereign coins on eBay £1 listing offers? What looks like a great opportunity to sell gold coins with minimal selling costs may end up a costly lesson. In my experience, eBay is not a safe place to sell gold coins online. In 2019 many gold sovereign collectors became familiar with the biweekly eBay auctions put on by one of my several user IDs, including for example SovereignStacker_2018, SovereignCollector, and AndreasAfeldt. I prided myself in giving collectors, investors, traders and stackers…

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Valuation Of semi-collectable and QEII proof gold coins

So called semi-numismatic or semi-collectable sovereigns, such as Victorian sovereigns or QEII proof sovereigns have a collector value on top of the bullion value. Although referred to as a ‘premium’, this is different than the premium paid on a normal bullion coin. The premium of a semi-numismatic gold coin is an investment in the collectible market, whereas a bullion premium is just a transaction cost. For example, I sold this 1843 sovereign on 11 August (so called shield or shield-back) for £375.00 when…

So called semi-numismatic or semi-collectable sovereigns, such as Victorian sovereigns or QEII proof sovereigns have a collector value on top of the bullion value. Although referred to as a ‘premium’, this is different than the premium paid on a normal bullion coin. The premium of a semi-numismatic gold coin is an investment in the collectible market, whereas a bullion premium is just a transaction cost. For example, I sold this 1843 sovereign on 11 August (so called shield or shield-back) for £375.00 when…

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Slabbed coins: pros and cons

Slabbed coins – coins in a secure plastic holder with a designated grade by a third party professional authentication and grading agency – are slowly becoming more of a normality in the UK. It used to be a sign that a coin had been purchased in the United States where the large majority of coins have been slabbed since the 1980s. Because the US grading system has more steps it creates a higher demand for top grades, especially in the…

Slabbed coins – coins in a secure plastic holder with a designated grade by a third party professional authentication and grading agency – are slowly becoming more of a normality in the UK. It used to be a sign that a coin had been purchased in the United States where the large majority of coins have been slabbed since the 1980s. Because the US grading system has more steps it creates a higher demand for top grades, especially in the…

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