The Gift Of Gold – A Simple Thought For The Holiday Season

December 7, 2017

We live in a time when currencies and financial markets have become political enterprises – creations of the world’s governments and central banks. Since we have never seen times like these, when so much depends on the monetary largesse of the policy-makers, no one really knows where the future might lead us. Uncertainty reigns and, when that is the case, history teaches us that gold demand rises proportionally and at times impressively so.

Uncertainty reached a whole new level, though, toward the end of November when minutes of a recent Federal Reserve Open Market Committee meeting revealed a level of concern within the central bank not often expressed in the public venue. “In light of elevated asset valuations and low financial market volatility,” read the minutes, “several participants expressed concerns about a potential buildup of financial imbalances. They worried that a sharp reversal in asset prices could have damaging effects on the economy.” Blunt as it was, a good many took those words as a warning from on high about the prospects for 2018.

The gift of gold – the one passed from generation to generation in ancient times to present – is the protection it offers against an unpredictable economy. The gift of gold, in short, is peace of mind.

Wishing you and yours the very best for the holiday season and a prosperous New Year from all of us at USAGOLD.

On The Ghosts Of Decembers Past

December, as it turns out, has been a humbug month for gold the past four years. In each of those years (2013 through 2016) December began poorly, but appropriately by Christmas-time things began to look brighter. By the end of January in the following year, the star over the gold market shone still more brightly…

  • On December 1, 2013 gold finished the day at $1220 per ounce. The low for the month came on the 19th at $1188, but by January 31, 2014, it traded at $1244 – up 4.7% from the December low.

  • On December 1, 2014 gold finished the day at $1212 per ounce. The low for the month came on the 24th at $1174, but by January 30, 2015, it traded at $1283 – up 9.3% from the December low.

  • On December 1, 2015 gold finished the day at $1069 per ounce. The low for the month came on the 17th at $1051, but by January 31, 2016, it traded at $1118 – up 6.4% from the December low.

  • On December 1, 2016 gold finished the day at $1171 per ounce. The low for the month came on the 22nd at $1128, but by January 31, 2017, it traded at $1210 – up 7.3% from the December low.

So the lesson imparted is to buy in December and enjoy the holidays. January is the start to a wholly new year.

Here we are in December, chugging along toward the end of the year.  In the recently released December issue of News & Views, we concentrate on the gold market itself with a variety short but informative reports with the upcoming year in mind:

On the ghosts of Decembers past (See reprint above)
• End-of-year gold and silver price predictions
• U.S. Mint makes a mint selling gold coins at a 25% mark-up
• Gold’s mysterious waterfall drops
• The gold/quality man’s suit ratio

And a long run of “Notable Quotables” for your reading pleasure

If you are not already a subscriber, we invite you to sign-up for free immediate access to the December issue, as well as future issues of our newsletter.  We think you will enjoy the subject matter and gain from our take on recent events in the gold market.

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Michael J. Kosares has over 40 years’ experience in the gold business. He is the founder and executive director of USAGOLD (both the website and gold brokerage service), the author of three books on the gold market, and the editor of "News, Commentary & Analysis," the firm's client letter. He has written numerous magazine and internet essays and is well-known for his ongoing commentary on the gold market and its economic, political and financial underpinnings. Visit his website at www.usagold.com.

Due primarily to the California Gold Rush, San Francisco’s population exploded from 1,000 to 100,000 in only two years.