Coinage Takes a Well-Deserved Nosedive

We had a good laugh around the office when CNBC started running segments about how awesome gold coins were. You would think that people would have learned since scams like Goldline have been exposed, but sadly, that wasn’t the case. At least… that wasn’t the case according to the pundits.  Marketwatch now reports:

The U.S. Mint’s gold-coin sales have fallen for a third straight year as the gold market undergoes big changes in its investment landscape to allow more choices for investors.

Sales of 753,000 ounces of American Eagle gold coins last year tumbled 25% from 2011, according to data from the U.S. Mint reported earlier this month. That was the lowest yearly sales total since 2007. In December, sales rose 16% from a year earlier, but fell 44% from the prior month. Read the WSJ story: U.S. mint gold-coin sales fell 25% in 2012.

At least investors may be growing more wary of gold coins as a means of investing in gold. Granted, gold coins from the US Mint aren’t really a bait and switch scam in the manner of Goldline… although they’re still going to be marked up somewhat compared to bullion or gold futures. And there are still a ton of investors who believe that gold is the answer to their prayers, even though the yellow metal has been demonstrating its typical volatility and tendency to cycle downward after a run up:

Chart courtesy Finviz.com. Disclaimer: past performance is not necessarily indicative of future results.

We know the general desire to own gold will never go away… no matter what the evidence against trying for a buy and hold gold position. In the meantime, we’ll take solace in knowing that investors have at least begun to shy away from the coin version.

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Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.