September Gold Coin Sales Brisk

Release Date: 
Friday, October 3, 2014

Gold and Silver Prices

Gold and silver prices fell this week on a strengthening U.S. dollar and a solid non-farm employment report. “Gold extended losses on Friday after stronger-than-expected U.S. jobs data intensified concerns about a less accommodative monetary-policy stance from the Federal Reserve…Continued improvement in the U.S. labor market clears the way for the Federal Reserve to tighten policy once the central bank ends its stimulus program later this month…Gold prices also faced pressure from the dollar, which drew strength from the upbeat employment data.” (“Gold Prices Fall to Lowest Level This Year,” Wall Street Journal, 10/3/14.)

Gold finished the week at $1,191.70, down $28.70. Silver prices closed the week down $0.80, finishing at $16.96.

September Gold Coin Sales Brisk

Gold coin sales last month from two of the world’s leading mints points to growing demand for physical gold. “The U.S. Mint sold 58,000 ounces of gold coins in September, more than in both of the previous months put together, says Commerzbank, noting that silver coins sales totaled 4.14 million ounces. The heightened coin sales are not just a U.S. phenomenon, as Australia’s Perth Mint said September gold-coin sales were the greatest in 11 months, amounting to just shy of 69,000 ounces, the bank said.” (“Gold-Coin Sales Picking Up – Commerzbank,” Kitco News, 10/2/14.)

Swiss Gold Referendum Could Spark Massive Government Purchase of Gold

A Swiss referendum to increase the country’s gold reserves could have a dramatic impact on the market.

“On November 30, Swiss citizens will go to the polls to vote on three areas; whether or not the Swiss National Bank should increase its gold reserves to 20%, that the central bank should stop selling its precious metals and that all its gold should be held within the country.

“Ole Hansen, head commodity strategist at Saxo Bank in Denmark, said it is still early in the campaign, but he has started monitoring the public sentiment in Switzerland as the next two months will be a critical time. He added that the Scottish referendum, held on September 18, is a strong reminder that sentiment can shift dramatically in a very short period. With all the geopolitical instability throughout the globe and concerns about European growth, it might not take much to convince people that the central bank needs to hold more gold in its reserve, he said.”

“In a research note published Sept. 24, Analysts at UBS said that if the referendum passes the Swiss National Bank would have to buy about 1,500 tons of gold over the next three years. ‘1500 tonnes equates to half of the world's annual production,’ they said in the report.

“‘That kind of gold buying would put what we’ve recently seen in China to shame,’” said Hansen. (“Swiss Gold Referendum Attracting Attention Two Months Ahead Of Vote,” Kitco News, 9/30/14.)

President Warns Cyber-Attacks Threaten National Security

President Obama issued a Presidential Proclamation warning Americans that “[c]yber threats pose one of the gravest national security dangers the United States faces [and] jeopardize our country's critical infrastructure, endanger our individual liberties, and threaten every American's way of life…Cyberspace touches nearly every part of our daily lives. It supports our schools and businesses, powers the grid that stretches across our Nation, and connects friends and families around the world. Our constant connection has led to revolutions in medicine and technology and has bettered our society, but it has also introduced new risks, especially to our finances, identity, and privacy.” (“Presidential Proclamation -- National Cybersecurity Awareness Month, 2014,”, 9/30/14.)

More than 76 Million JP Morgan Accounts Compromised by Hackers

JP Morgan disclosed this week that hackers, possibly sponsored by foreign governments, accessed sensitive client data of more than 76 Million accounts.

“A cyber-attack this summer on JPMorgan Chase compromised more than 76 million household accounts and seven million small-business accounts, making it among the largest corporate hacks ever discovered.”

“Hackers were able to burrow deep into JPMorgan’s computer systems, accessing the accounts of more than 90 servers–a breach that underscores just how vulnerable the global financial system is to cyber-crime. Until now, most of the largest hack attacks on corporations have been confined to retailers like Target and Home Depot. And unlike those retailers, JPMorgan has far more sensitive financial information about customers…The lack of any apparent profit motive has generated speculation among law enforcement officials and security experts that the hackers were sponsored by foreign governments either in Russia or in southern Europe.” (“JPMorgan Chase Says More Than 76 Million Accounts Compromised in Cyberattack,” New York Times, 10/2/14.)

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Goldline provides a wrap-up of the week's precious metals news along with important commentary on the American Advisor Week in Review audio program. Listen to the show below:

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

You should review Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage.

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