Welcome to Friday’s edition of the Gold & Silver Central newsletter.

Today’s investment news covers a wide range of topics: American gold eagle coins, central banks net selling numbers, bitcoin, inflation, a precious metals update, and Canada’s use of gold to narrow its trade deficit.

Let’s dig in…

Price
Wow! American Gold Eagle Sales Rocketed Up 455% in 2020

Demand for physical gold and silver surged last year as smart investors sought safe haven from a record-breaking expansion in the money supply, record federal budget deficits, and quantitative easing set to infinity. Sales of US gold and silver bullion coins at the US Mint hit a 4-year high in 2020. The Mint sold 884,000 ounces of American Gold Eagle coins last year. It was a 455% increase over the 152,000 ounces sold in 2019. It was the highest level of gold coin sales since 2016. American Silver Eagle sales increased by 101% with 30.01 million ounces sold in 2020.

Economy
Central Banks Switch Back to Net Selling in November

Following net purchases in October, central banks returned to net selling in November. Global official reserves declined by 6.5t during the month. Like August and September, when central banks were also net sellers, this was the result of continued moderate buying being offset by a few sizeable sales.

Commentary
Did You Miss the Bitcoin Gravy Train?

Bitcoin has hit an all-time-high price, and our support desk has been inundated with questions from customers asking what Mike Maloney makes of this. In response, Mike has recorded two in-depth videos that answer the questions we are seeing the most: Is it too late to participate? Can Bitcoin go to zero? What other cryptocurrencies does Mike own? What is his strategy? All that and more in today’s double Bitcoin feature.

WATCH VIDEO

Economy
These Forces Will (Hopefully) Keep Inflation in Check

In the 1970s the most dreaded word in economics was inflation. Fast forward to the present and many are wondering if we will ever see sustained inflation again. Given the unprecedented central bank intervention over the last twelve years, inflation has been remarkably subdued, indeed at times investors have fretted that the US was experiencing deflation. For years, the Fed has tried to reach its long- term goal of 2% inflation, to no avail. However, the Fed’s giant experiment has created inflation in other parts of the economy not captured by formal economic metrics such as the Consumer Price Index (CPI) and the Personal Consumption Expenditure Price Index (PCE) that tend to dampen inflation calculations.

Commentary
Precious Metals Update from David Morgan

David Morgan appeared for FSN, doing his usual outstanding analysis of gold and silver prices. According to David gold is now in a cup and handle pattern, the most powerful formation we can observe. David thinks we are in a 2-3 year move. We’ll be breaking 2000 gold and once that happens, we’re looking at the final leg of this massive movement. David talks silver and the picture is very encouraging. Platinum, Palladium getting ready for the next Platinum move. The market is telling us that it could be time to get out of Palladium and into Platinum. Silver isn’t quite in a cup, but it won’t be long. Keep a close eye on the silver chart. We’ve seen a flat 5 year silver chart. The last year saw a move to $30 and a consolidation. We’re pushing towards the $27 level. Volume is the key. If you don’t know the volume, you don’t know anything.

WATCH VIDEO

International
Gold Shipments Narrow Canada’s Trade Deficit

Canada’s merchandise trade deficit remained at historically elevated levels in November, as exports and imports slowed amid a weakening global recovery. Exports of goods increased by just 0.5 per cent in November, after jumping 2.2 per cent in October and 1 per cent in September, Statistics Canada said Tuesday in Ottawa. Imports fell for the first time since May, dropping 0.3 per cent in a sign of sluggish demand at home.

Thanks,
Gold Silver Central