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Money Metals News Alert
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December 16th, 2024
– Gold and silver prices got whacked Thursday and Friday, losing all the
gains made earlier in the week. The S&P 500 also finished the week lower, as did
bonds.
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The dollar strengthened on
the DXY index.
Investor demand for safe
haven assets remains muted following the election. Bitcoin and cryptocurrencies
are roaring.
The FOMC meets this week
and another interest rate cut is expected.
It is currently more of a
buyer???s market than bullion investors have seen in years. Inventories are
plentiful and premiums have come way down in recent months.
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Gold : Silver Ratio (as of
Friday's closing prices) – 86.5 to
1
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The Pros and Cons of Depository Storage For
Your Metal
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Depository storage for precious metals
isn???t for everyone, but, then, neither is storing metals at home. Especially in
larger amounts.
The choice is more complicated than it
might look at first glance. It isn???t as simple as determining if the advantage of
more physical security is worth the cost and giving up personal possession.
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Here are some of the less
obvious considerations when deciding whether secure storage for your bullion
investment makes sense…
Insurance is a good place
to start. Getting coverage at home is difficult in smaller amounts. It is all but
impossible in larger amounts (often $50,000.00 or more). Home insurance is also
getting more expensive.
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Nothing placed in a bank safe-deposit
box, including precious metal, is insured.
The total fee storage at Money
Metals Depository is currently $490/year for a holding valued at $100,000
– that???s less than half of one percent. (And storing $16,000 worth costs
just $96 a year).
This fee includes ???all-risks???
insurance coverage for the full value. Investors trying to insure the metal at
home are likely to pay more for a ???valuables??? rider and get about half the
coverage.
The logistics around shipping and
receiving metal can also be a factor. Those who plan to hold the metal a long time
and have the wherewithal to handle it, as well as the space to store it, don???t
have to worry much.
However, investors who plan to trade
will want to think about the cost of shipping and insuring the metal they sell.
Those making a larger silver investment need to think carefully about the weight
and the space required.
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Money
Metals Depository clients do not have to handle the metal at all, and there is
no cost to ship, either when they buy or sell, at Money Metals.
A $100,000.00 purchase in
silver amounts to about 3,000 ozs at current prices. It will arrive in 6 boxes,
roughly the size of a shoe box and weighing about 40 lbs each. This is more than a
lot of home safes can accommodate and more than some people will be able to carry
comfortably.
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Investors should also give their
ability to secure the metal at home a realistic assessment. How many contractors
or kids??? friends will see the home safe? Are home burglaries a problem in the
neighborhood? Is the home unoccupied for long stretches of time?
Burglary, including a home invasion,
is a risk. Just ask mining expert Jeff
Clark.
Secure storage does mean giving up the
control that comes with personal possession, and that is a serious consideration.
Due diligence is important and no firm is automatically entitled to your trust.
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Hundreds of clients at
First State Depository in Delaware found out that $112 million of their metal was
missing. The owner was prosecuted for fraud. Not only was the metal gone, but the
insurance coverage was inadequate.
Anyone considering storage
should ask the depository for proof of insurance coverage and independent third
party audits.
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They should then keep an eye out for
the common
red flags about which Money Metals??? constantly warns, especially long delays
in getting metal shipped.
To be clear, Money Metals believes
just about everyone should have at least some of their gold and silver in their
direct personal possession. But storage via a trusted partner like Money Metals
Depository can be a highly convenient, inexpensive, and secure way to go.
It all depends on your comfort level
and your particular circumstances. For more information, visit
this page.
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Potential Market-Moving News This Week
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- Tuesday, December 17th
– Retail Sales . Economists are expecting a tick higher in November
retail sales. Sales gained 0.4% in October and the consensus for November is 0.6%.
- Wednesday, December 18th
– FOMC Rate Decision. The Fed began cutting rates in September, despite
inflation remaining above target levels and strong employment data from the Bureau
of Labor Statistics. Lately researchers have begun asking questions about the
quality of government data – especially the jobs reports.
- Friday, December 20th
– Personal Incomes and Spending . Once again, forecasters predict income
growth will lag behind spending growth. Inflation isn???t having the impact on wages
that it does on the cost of living.
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This week's Market Update was
authored by Money Metals Director Clint Siegner.
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This copyrighted material may not
be republished without express permission. Offer only available through email
promotion. Offer does not apply to previous orders and may not be combined with
any other offer or program. Special shipping rates or other restrictions may apply
to international orders. The information presented here is for general educational
purposes only. Money Metals Exchange and its staff do not act as personal
investment advisors. Nor do we advocate the purchase or sale of any regulated
security listed on any exchange for any specific individual. While our track
record is excellent, investment markets have inherent risks and there can be no
assurance of future profits. You are responsible for your investment decisions,
and they should be made in consultation with your own advisors. By purchasing from
Money Metals, you understand our company is not responsible for any losses caused
by your investment decisions, nor do we have any claim to any market gains you may
enjoy. Money Metals Exchange is not a regulated trading ???exchange??? as defined by
the CFTC and the SEC.
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