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Tuesday, April 15, 2014

How To Invest In Gold With Little Money And Without Buying Gold - Gold Price Indicator Foreshadows Strong Rebound for Gold

Stock prices climb a wall of worry. 

Gold prices do too. 

When gold prices were setting records in 2010 and 2011, investors flocked to gold and precious metals investments like they haven’t since the top of the last bull market in the late 1970s. 

That was a time when gold and silver buyers were lined up outside coin stores like the bread and soup lines of the United States during the Great Depression. 

The data from the U.S. mint on gold coin sales is the perfect indicator of the level of gold investment demand. And since contrarian investors know the best time to buy any investment is when no one else is, it’s a helpful guide on when to buy gold. 

That’s why we see it as a very good sign for future gold price rise that gold coin sales are down sharply from their recent highs.



Consider this. 

The latest data from the U.S. mint says February gold coin sales are down 60% from the same time last year. 

That’s a massive decline. But there’s more perspective here that signals a big drop in gold investment demand

We’ll compare sales data on the world standard of bullion coins for gold investment purposes - the U.S. one ounce American Eagle gold coins.

In February 2011 there were 72,500 one ounce American Eagle gold coins sold by the U.S Mint. 

In February 2012, after gold prices peaked above $1900 an ounce in August 2011, and there were 20,000 sold that month. 


The chart below which shows the ratio  

 Gold Chart


In February of 2013 there were 68,000 sold. 

This year there was once again a major slide. Last month there were only 22,000.

All of this shows investor interest and demand for gold is down significantly. Contrarian investors know that’s a good thing.

More than two years of steady declines in the value of gold investments has produced a major wall of worry about the future prospects for gold investments. 

That’s a very positive indicator about the future price of gold.
Good investing,

Andrew Mickey
Executive Editor, Contrarian Insights

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