Gold Supply Crunch - Production Declining, Exploration at Record Low
Investors have been bailing out of paper gold (ETFs) while at the same time consumers are scooping up gold coins, bars, and jewelry at a torrid pace. Just when demand for physical gold has soared comes news that there will be less of it to go around.
The U.S. Geological Survey reported in its Mineral Industry Survey that U.S. gold production fell 8% year-on-year in February. That's after production fell 10% in January.
This year's production slump continues the declining trend of last year. USGS said U.S. gold production was down 225,055 ounces in 2012 from the previous year's output.
Not only are the mines not producing as much gold, but there's not too much going on to find more gold to replace what is being taken out of the ground now. Mining consultant and research firm IntierraRMG's latest State of the Market report reveals that exploration worldwide for new gold ounces fell to a record low in March, continuing a 17-month decline in the search for the yellow metal.
Asian Gold Frenzy Continues
Gold imports to China are expected to swell even more after a strong surge for the second straight month in March. "Physical demand picked up significantly over the last couple of weeks. Consumers and industrial users tend to see price drops as buying opportunities," said Zhang Bingnan, secretary-general of the China Gold Association. "Investment demand should continue to stay strong through the rest of the year because of limited investment alternatives," said Zhang. He said gold sales and processing volumes both spiked in April.
Chinese buyers have been swarming gold shops, taking advantage of low prices and worried about the suddenly shaky Chinese economy. In the first quarter, purchases of gold bars zoomed by 49%. Jewelry surged by 16%. Overall gold consumption in China soared 26% in the first quarter.
Sandwiched between receiving an award, autographing copies of his book and purchasing gold coins to fulfill his customers' orders, America's Gold Expert® , Michael Fuljenz, recently was a keynote speaker at a special training course for Texas law enforcement personnel on the topic of investigating crimes involving rare coins, bullion and jewelry.
(Philadelphia, Pennsylvania) – America's Gold Expert, Michael Fuljenz, in Beaumont, Texas, set an unparalleled record of achievement at the World's Fair of Money in Philadelphia, August 7 - 11, 2012. He received another six prestigious industry awards, continuing a string of honors and accomplishments at these annual gatherings of the world's top rare coin and precious metals dignitaries…
Watch Mike’s FOX Interview Here: http://t.co/OJ5HGQH
Mike Fuljenz with Rep Lloyd Doggett (D-TX) and Rep Jimmy Hayes (R-LA)
I am urging coin collectors and investors nationwide to promptly contact their Congressional representatives in support of the recently introduced Collectible Coin Protection Act (HR5977).
I was among a half dozen of the country's numismatic leaders who met in Washington, DC on June 28, 2012 with Congressional leaders and staff members to discuss the importance of the proposed legislation to protect the public.
Most Americans take those words for granted today and assume they’ve always been part of our national fabric. Thus, many were surprised when the House of Representatives recently voted to reaffirm that this simple phrase is the official national motto. The story of the motto is an engrossing one, full of fascinating twists and turns…
KFDM-TV Channel 6 in my hometown of Beaumont,Texas recently did a Crime Stoppers story about a Texas dealer who reportedly paid only $16,000 for nearly $250,000 of coins sent to him by an 82-year old California woman. The interviewer asked me for consumer protection advice so other people can avoid encountering this kind of problem.
By Doug Davis - Numismatic Crime Information Center
The State of Texas has already arrested some out of state gold buyers for not adhering to new state requirements that were effective Jan 1, 2012. The Texas Legislative committee heard from coin dealer Mike Fuljenz whose expertise was invaluable during the drafting of the new legislation.