Gold has worked down from Alexander's time... When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory. - Bernard M. Baruch
Something most unusual happened yesterday - in the aftermath of the one of the most brutal one-day price drops in gold that I've ever witnessed - a paper/futures driven sell-off, mind you - U.S. retail buyers bought 63,500 ozs of gold American eagles from the U.S. mint. This is by far a one-day record. This is nearly 2 tonnes of gold purchased in one day by retail buyers. A staggering amount. That's 20% of the amount the falsely-reported gold sale from the Cyprus Central Bank. What's most stunning about this is that historically, gold/silver buyers have scattered like frightened deer when gold undergoes a big price drop. But this time was different.
While the widely reported price drop in gold has made great media "shock and awe" headlines, quietly the nationwide coin dealer supply of 1 oz. silver eagles and maple leafs has been rapidly depleted. Dealers two weeks ago were selling silver eagles for spot +$2.50 +/-. Yesterday I spoke with a very large owner of silver eagle mint boxes (500 ozs/box) who was offered (bid) spot +$3.75 by two large coin dealers for everything he owned.
In fact, if you can find dealers with silver eagles to offer, you'll pay spot + $7.50-8.50 plus shipping. So, in fact, despite the big sell-off in the price silver - again, driven by the paper/futures Comex - the true price of 1 oz. of real, physical silver that gets delivered to your possession has not declined at all (large buyers might be able to find silver eagles in quantity at more like spot +$4.50-5.00).
If you see offers from your bank or insurance company-employed financial advisor to invest in an account that has gold/silver in it, run the other way. ABN/Amro - the large Dutch bank - recently defaulted on investors who invested in a gold "account" and who wanted delivery of that gold ...