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    Gold Remains Firm but Suspicious

    Last updated 42 minutes ago

    Commentary for Monday, Oct 20, 2014 (www.golddealer.com) – Gold closed up $5.70 today at $1244.00 so we made up for Friday’s small loss and added a few bucks on top. But my comments on Friday stand in that the market while short term technically stronger from its most recent low still looks like they are having trouble in the $1240.00 range.

    The public however seems a bit more comfortable and we are seeing a few rather large buyers reenter the gold bullion market – perhaps testing the waters.

    It appears the Chinese continue to buy gold. This according to BullionStar.com – Singapore - Chinese gold demand 67 tonnes in five days - The Chinese national holiday, The Golden Week, is over and the latest data from the Shanghai Gold Exchange (SGE) shows the Chinese have been buying extraordinary amounts of gold before and after this holiday. The SGE was closed from October 1 to 7, the latest SGE withdrawal numbers cover September 29 and 30, and October 8, 9 and 10. In these 5 days 68.4 tonnes were withdrawn from the SGE vaults (in the mainland and the Shanghai Free Trade Zone).  

    So which side of the fence are you on? Do you believe last Thursday’s shakeout in stocks was just a hiccup? Remember Europe the night before was showing a lot of red cards and the overnight market was shaky. Then Bullard got in the act in early domestic stock trading and the waters calmed – remember US economic data is not that bad and there is still optimism on Wall Street.  But that hiccup was rather loud – the DOW plunged almost 500 points before hearing the Federal Reserve shill and recovering with a small frown.

    The point being is that if you believe this downward move in the DOW was just profit taking – it has been on a tear of late – and Europe is really no worse off than it has been since the 2008 slide then the next meeting of the Federal Open Market Committee will not be of much concern to you and your guess as to the price of gold would be - flat to trending lower.

    I think the next FOMC meeting is October 28th and 29th – as usual that is a Monday and Tuesday and they release their decisions after the market close on Wednesday – we don’t have to be too precise here because we are coin dealers and not CNBC analysts.

    Traders will ponder whether the Federal Reserve will follow through with what they promised – the end of quantitative easing. I think Yellen is down to $10 billion a month in bond purchases so in the scheme of Federal spending we are not talking about a lot of money - and besides it’s your money not theirs.

    Some thinkers outside the box believe they will continue the financial largess – afraid that pulling the plug will create waves in Europe. I think they will end quantitative easing as predicted – but assure the great unwashed that interest rates will remain low for the foreseeable future. In this case that may be a lot longer than anyone considered just a year ago. Backing away from this Keynesian nightmare is dangerous because creating fiat paper money is not the secret path to financial success.

    Finally ending QE will create the usual drag on gold but not to the extent that most believe because the markets have already absorbed much of the reduction.

    Back to my original question about the fence – which side do you like? If you think the Federal Reserve will capitulate and continue QE – gold will remain firm and perhaps test $1300.00. So for the short term your fate is in the hands of the Federal Reserve – and maybe in the long term too if they continue to inflate. 

    Silver closed up a quiet $0.02 at $17.30 and the physical market remains steady.

    Platinum closed up $6.00 at $1268.00 and palladium was also higher by $5.00 at $761.00. This might be interesting – we are not seeing much in the way of trading gold bullion for platinum bullion even though they are very close in price. We are however seeing a great deal of trading gold bullion for silver bullion.   

    This from Ed Steer’s Gold & Silver Daily / Doug Noland (www.prudentbear.com) – The Downside of Do Whatever it Takes – At about 10:20 a.m. on Thursday, with European markets tanking and U.S. equities sinking, St. Louis Fed president James Bullard began to be interviewed on Bloomberg Television. Bullard, generally considered a FOMC moderate, had more recently shifted to the hawkish contingent. This ensured that his Thursday morning flutter to join the doves provided notable relief to the markets. The key Bloomberg headline (10:25 am): “Bullard Says Fed Should Consider Delay in Ending QE.” Nervous markets had been awaiting a signal of support from the FOMC. From the market’s 10:18 a.m. low to Friday’s high the S&P500 rallied 3.4%.

    San Francisco Fed chief John Williams actually got things going Wednesday with his comment (Reuters interview), “If we really get a sustained, disinflationary forecast ... then I think moving back to additional asset purchases in a situation like that should be something we should seriously consider.” It was close enough to Bernanke’s summer of 2013 assurances that the Fed would “push back” against a tightening of financial conditions. As a longtime close advisor to Janet Yellen, Williams’ views matter to the markets.

    The QE issue is a fascinating one. History is rather clear: once major monetary inflations begin they become nearly impossible to stop. I certainly don’t expect the ballooning of the Fed’s balance sheet stops at $4.5 TN. There will be no “exit.” I’m thinking “QE4” might be ushered in with something similar to the Fed’s statement before the stock market opened the day following the 1987 crash: “The Federal Reserve, consistent with its responsibilities as the Nation's central bank, affirmed today its readiness to serve as a source of liquidity to support the economic and financial system.”

    The bulls absolutely fixate on the Fed (and its cohorts) reliably backstopping the markets – “QE infinity”. I could only chuckle when reading a Wednesday UK Telegraph headline: “World Economy So Damaged It May Need Permanent QE.” Anyone asking how it became so damaged?

    From a real world perspective, by now it’s apparent that QE doesn’t work as prescribed – as the propaganda asserts. Global central banks have added Trillions of liquidity and the global economy and markets are as fragile as ever. The Fed has “printed” almost $3.6 TN in six years and the U.S. economy remains extraordinarily vulnerable. Arguably, U.S. securities Bubbles are an accident in the making. Incredible QE in Japan has had only modest economic impact, with sinking stocks now weighing on confidence. In the past two years of incredible global monetary pumping, disinflationary forces have gathered momentum. Many commodities are trading at multi-year lows. Now global market participants and pundits clamor for aggressive ECB QE, while blasting what is commonly viewed as mindless German austerity. The hope has been that ECB QE would sustain the global Bubble. Mindfully, the Germans don’t want to play ball.

    If only Bubbles lasted forever. And, unfortunately, the longer they persist and the bigger they inflate -the more problematic the unavoidable collapse. This important reality is ignored at everyone’s peril. Determination to avoid collapse only ensures greater and more precarious Bubble distortions and maladjustment. “World Braces as Deflation Tremors Hit Eurozone Bond Markets,” read another UK Telegraph headline. And Bullard and the global central bank community fret a “collapse in inflation expectations.” It is important to recognize that disinflation and collapsing “inflation expectations” are symptomatic of a bursting global financial Bubble, providing early evidence of what will be a spectacular failure in experimental “activist” central banking.

    Predictably, the calls for more “money” printing turn boisterous and increasingly desperate. But more QE only delays the day of reckoning. I guess I am an “extremist” for stating that printing “money” out of thin air and inflating global securities markets are not going to resolve deep structural deficiencies in global Credit and economic “system”.

    The above quote is only a small part of this interesting post on the Prudent Bear. You really should bookmark this site if you want to understand how serious world financial problems have become. I’m not saying we are facing a nuclear winter – that is not part of my personality but a quote at the beginning of Noland’s article is worth repeating - "Anyone who isn't really *concerned* doesn't understand the situation."

    Noland finishes as follows: I expect the markets will be confronted by myriad troubling European issues. From the markets’ perspective, the Ukraine crisis has been resolved. Putin buckled under the pressure of Western economic sanctions, in another win for contemporary finance. I suspect this thinking is way too optimistic. Actually, I believe Putin is determined that Western sanctions don't win. And there were some rather ominous warnings this week regarding the potential consequences of “blackmailing” Russia. So don’t be surprised if Putin turns the tables and blackmails the West (i.e. if sanctions are not lifted there will be a renewed land grab in Ukraine, along with a more belligerent stance generally).

    And while the focus was more on market volatility and the Ebola virus, the geopolitical backdrop worsens by the week. Putin and Beijing seem to be singing from the same hymnbook, as the Chinese turned more outspoken in blaming the U.S. for the Hong Kong protests (and other “color revolutions”). The situation in the Middle East becomes more alarming by the week. Overall, the gap between disconcerting global prospects and ebullient securities prices is as wide as ever. Clearly, central bankers would hope to maintain this gap – to defend the Truman Show World. And I don’t believe it is an extremist view to see this as one big financial scheme. Moreover, it’s not extremist to fear how things will play out when confidence wanes - when this scheme falters. Actually, the extremists are the inflationists that believe printing money will resolve the world’s ills. The Fed has been neither “wise” nor “courageous.” Have we not seen enough already?

    Interested in the gold standard? Read this post from David Stockman/ZeroHedge written by Keith Weiner - The Problem With Central Bank Money Printing Is A Debt Spiral, Not Runaway Consumer Inflation - After President Nixon’s gold default in 1971, many people advocated a return to the gold standard. One argument has been repeated: consumer prices are rising. While this is true, it wasn’t compelling in the 1970’s and it certainly doesn’t fire people up today. Rising prices—what most people think of as inflation—is a dead-end, politically. People care about rising prices, but not that much.

    There is a greater danger to fixating on this one argument. What if you make a really bad prediction? The Fed did massively increase the money supply in response to the crisis of 2008. Many gold advocates predicted skyrocketing prices—even hyperinflation. Obviously, this has failed to materialize so far.

    Preachers of imminent dollar collapse have lost credibility. Worse yet, they have poisoned the well. People who were once receptive to the benefits of gold have lost interest (their selling has exacerbated and extended the falling gold price trend). And why shouldn’t they walk away? They can see that some Armageddon peddlers have a conflict of interest, as they are also gold and silver bullion dealers.

    The gold standard has nothing to do with buying gold in the hopes that its price will go up. It has little to do with the price of anything—gold or consumer goods.

    There’s no doubt that the fiat dollar harms us in many ways. However, the chronic rise of prices is the least of the wounds it inflicts. If prices could rise for a hundred years, then there’s no reason they couldn’t go on rising for another century—or a millennium. There is no finite endpoint for rising prices.

    There is a finite limit to the abuse of credit, before the dollar will fail.

    The interest rate is a prime driver of systemic failure. Interest has been falling for 33 years, since its peak in 1981. What happens when it hits zero? I don’t refer to the Fed funds rate, discount rate, or any short-term rate. I mean the 10-year bond or even the 30-year bond. In the U.S., the 10-year bond pays 2.3%. In Germany, it has already fallen to 0.91% (not a typo, 91 basis points). In Japan, it’s close to half of that, at 0.5%.

    Naturally, the cheaper the rate, the more it encourages borrowing. When the rate keeps falling, the borrowing keeps rising. Is there a failure point for debt?

    Along with encouraging borrowing, low and falling interest discourages savings. Isn’t that perverse, to discourage saving? What happens when an entire society doesn’t save?

    Our financial system has suffered an escalating series of crises. Each crisis has grown out of the fix applied to the previous one.

    The crisis of 2008 was different. No matter what the Fed has attempted, they have not been able to create even the temporary appearance of recovery (other than in asset prices). It’s not merely that growth will be slow, or slower than it should be in some theoretical ideal economic world.

    There will be no recovery while our monetary cancer rages, unchecked. We must rediscover the gold standard, which is the only cure.

    Our ancient ancestors adopted money to enable them to coordinate their productive activities in their economies. They could only go so far using barter, but money made possible the division of labor and hence specialization. Lubricated by money, there is no limit to economic growth and the development of wondrous products. For example, today we have access to the Internet on a thin handheld device.

    The dollar still does perform this function, which is why it hasn’t collapsed yet. However, it is slowly failing. It is increasingly imposing perverse incentives. The dollar is hurting us by encouraging us to destroy precious capital in numerous ways.

    The Gold Standard Institute is sponsoring an event in New York City on November 1. I will be speaking about the destruction being wrought by the dollar, including a detailed discussion of the problems mentioned above. I will also propose a practical transition path to the gold standard.

    You are cordially invited to join us for a presentation of ideas you won’t get anywhere else. New York Gold Conference - November 1, 2014 @ 1:00 pm – 5:00 pm - 3 West Club - 3 West 51st Street - New York,NY 10019 – Cost $50, $25 for students.

    The walk-in cash trade was steady and so were the phones. The general public seems content with this market and continues to buy both gold and silver bullion. I still wonder about why we seem to be hovering around $1240.00. There is enough tension in the air to push prices higher but we have not seen a big follow through.     

    The GoldDealer.com Unscientific Activity Scale is a “5” for Monday. The CNI Activity Scale takes into consideration volume and the hedge book: (last Tuesday – 4) (last Wednesday – 3) (last Thursday – 4) (last Friday – 5). The scale (1 through 10) is a reliable way to understand our volume numbers. The Activity Scale is weighted and is not necessarily real time – meaning we could be very busy and see a low number – or be very slow and see a high number. This is true because of the way our computer runs what we call the “book”. Our “activity” is better understood from a wider point of view – perhaps a week or two. If the numbers are generally increasing – it would indicate things are busier – decreasing numbers over a longer period would indicate volume is moving lower.  

    Email confirmation using a PDF File when buying or selling is functional. It also includes the various forms of payment and includes bank wire instructions. And you can now see your actual invoice or purchase order on your computer screen.

    When you buy or sell please check to see if we have your current email on file and that your computer will accept our email (no spam).

    About shipping information – when buying or selling your rep will walk you through your current mailing information. Thanks for keeping us up to date if you have moved.

    Our four flat screens downstairs with live independent pricing (BullionDesk.com) are a big hit with the cash trade. Live pricing moves all the buy/sell product prices on a real time basis. Yes - you can visit the store with cash and walk away with your product. Or you can bring product to the store and walk away with cash. When buying from us remember if you exceed $10,000 in cash (the real green kind) a Federal Form is necessary.

    In addition to our freshly ground organic coffee offered visitors throughout the day we have added cold bottled water, cokes and Snapple. We have also added fresh fruit in a transparent attempt to disguise our regular junk food habits.

    Like us on Facebook and follow us on Twitter @CNI_golddealer.

    Thanks for reading - your friends at GoldDealer.com. Enjoy your evening and we appreciate your business.

    Disclaimer – The content in this newsletter and on the GoldDealer.com website is provided for informational purposes only and our employees are not registered financial advisers. The precious metals and rare coin market is random and highly volatile so it may not be suitable for some individuals. We suggest before deciding on a course of action that you talk with an independent financial professional. While due care has been exercised in development and dissemination of our web site, the Almost Famous Gold Newsletter, or other promotional material, there is no guarantee of correctness so this corporation and its employees shall be held harmless in all cases. GoldDealer.com (California Numismatic Investments, Inc.) and its employees do not render legal, tax, or investment advice.

    Gold Remains Firm but Suspecious

    Last updated 54 minutes ago

    Commentary for Monday, Oct 20, 2014 (www.golddealer.com) – Gold closed up $5.70 today at $1244.00 so we made up for Friday’s small loss and added a few bucks on top. But my comments on Friday stand in that the market while short term technically stronger from its most recent low still looks like they are having trouble in the $1240.00 range.

    The public however seems a bit more comfortable and we are seeing a few rather large buyers reenter the gold bullion market – perhaps testing the waters.

    It appears the Chinese continue to buy gold. This according to BullionStar.com – Singapore - Chinese gold demand 67 tonnes in five days - The Chinese national holiday, The Golden Week, is over and the latest data from the Shanghai Gold Exchange (SGE) shows the Chinese have been buying extraordinary amounts of gold before and after this holiday. The SGE was closed from October 1 to 7, the latest SGE withdrawal numbers cover September 29 and 30, and October 8, 9 and 10. In these 5 days 68.4 tonnes were withdrawn from the SGE vaults (in the mainland and the Shanghai Free Trade Zone).  

    So which side of the fence are you on? Do you believe last Thursday’s shakeout in stocks was just a hiccup? Remember Europe the night before was showing a lot of red cards and the overnight market was shaky. Then Bullard got in the act in early domestic stock trading and the waters calmed – remember US economic data is not that bad and there is still optimism on Wall Street.  But that hiccup was rather loud – the DOW plunged almost 500 points before hearing the Federal Reserve shill and recovering with a small frown.

    The point being is that if you believe this downward move in the DOW was just profit taking – it has been on a tear of late – and Europe is really no worse off than it has been since the 2008 slide then the next meeting of the Federal Open Market Committee will not be of much concern to you and your guess as to the price of gold would be - flat to trending lower.

    I think the next FOMC meeting is October 28th and 29th – as usual that is a Monday and Tuesday and they release their decisions after the market close on Wednesday – we don’t have to be too precise here because we are coin dealers and not CNBC analysts.

    Traders will ponder whether the Federal Reserve will follow through with what they promised – the end of quantitative easing. I think Yellen is down to $10 billion a month in bond purchases so in the scheme of Federal spending we are not talking about a lot of money - and besides it’s your money not theirs.

    Some thinkers outside the box believe they will continue the financial largess – afraid that pulling the plug will create waves in Europe. I think they will end quantitative easing as predicted – but assure the great unwashed that interest rates will remain low for the foreseeable future. In this case that may be a lot longer than anyone considered just a year ago. Backing away from this Keynesian nightmare is dangerous because creating fiat paper money is not the secret path to financial success.

    Finally ending QE will create the usual drag on gold but not to the extent that most believe because the markets have already absorbed much of the reduction.  

    Back to my original question about the fence – which side do you like? If you think the Federal Reserve will capitulate and continue QE – gold will remain firm and perhaps test $1300.00. So for the short term your fate is in the hands of the Federal Reserve – and maybe in the long term too if they continue to inflate. 

    Silver closed up a quiet $0.02 at $17.30 and the physical market remains steady.

    Platinum closed up $6.00 at $1268.00 and palladium was also higher by $5.00 at $761.00. This might be interesting – we are not seeing much in the way of trading gold bullion for platinum bullion even though they are very close in price. We are however seeing a great deal of trading gold bullion for silver bullion.   

    This from Ed Steer’s Gold & Silver Daily / Doug Noland (www.prudentbear.com) – The Downside of Do Whatever it Takes – At about 10:20 a.m. on Thursday, with European markets tanking and U.S. equities sinking, St. Louis Fed president James Bullard began to be interviewed on Bloomberg Television. Bullard, generally considered a FOMC moderate, had more recently shifted to the hawkish contingent. This ensured that his Thursday morning flutter to join the doves provided notable relief to the markets. The key Bloomberg headline (10:25 am): “Bullard Says Fed Should Consider Delay in Ending QE.” Nervous markets had been awaiting a signal of support from the FOMC. From the market’s 10:18 a.m. low to Friday’s high the S&P500 rallied 3.4%.

    San Francisco Fed chief John Williams actually got things going Wednesday with his comment (Reuters interview), “If we really get a sustained, disinflationary forecast ... then I think moving back to additional asset purchases in a situation like that should be something we should seriously consider.” It was close enough to Bernanke’s summer of 2013 assurances that the Fed would “push back” against a tightening of financial conditions. As a longtime close advisor to Janet Yellen, Williams’ views matter to the markets.

    The QE issue is a fascinating one. History is rather clear: once major monetary inflations begin they become nearly impossible to stop. I certainly don’t expect the ballooning of the Fed’s balance sheet stops at $4.5 TN. There will be no “exit.” I’m thinking “QE4” might be ushered in with something similar to the Fed’s statement before the stock market opened the day following the 1987 crash: “The Federal Reserve, consistent with its responsibilities as the Nation's central bank, affirmed today its readiness to serve as a source of liquidity to support the economic and financial system.”

    The bulls absolutely fixate on the Fed (and its cohorts) reliably backstopping the markets – “QE infinity”. I could only chuckle when reading a Wednesday UK Telegraph headline: “World Economy So Damaged It May Need Permanent QE.” Anyone asking how it became so damaged?

    From a real world perspective, by now it’s apparent that QE doesn’t work as prescribed – as the propaganda asserts. Global central banks have added Trillions of liquidity and the global economy and markets are as fragile as ever. The Fed has “printed” almost $3.6 TN in six years and the U.S. economy remains extraordinarily vulnerable. Arguably, U.S. securities Bubbles are an accident in the making. Incredible QE in Japan has had only modest economic impact, with sinking stocks now weighing on confidence. In the past two years of incredible global monetary pumping, disinflationary forces have gathered momentum. Many commodities are trading at multi-year lows. Now global market participants and pundits clamor for aggressive ECB QE, while blasting what is commonly viewed as mindless German austerity. The hope has been that ECB QE would sustain the global Bubble. Mindfully, the Germans don’t want to play ball.

    If only Bubbles lasted forever. And, unfortunately, the longer they persist and the bigger they inflate -the more problematic the unavoidable collapse. This important reality is ignored at everyone’s peril. Determination to avoid collapse only ensures greater and more precarious Bubble distortions and maladjustment. “World Braces as Deflation Tremors Hit Eurozone Bond Markets,” read another UK Telegraph headline. And Bullard and the global central bank community fret a “collapse in inflation expectations.” It is important to recognize that disinflation and collapsing “inflation expectations” are symptomatic of a bursting global financial Bubble, providing early evidence of what will be a spectacular failure in experimental “activist” central banking.

    Predictably, the calls for more “money” printing turn boisterous and increasingly desperate. But more QE only delays the day of reckoning. I guess I am an “extremist” for stating that printing “money” out of thin air and inflating global securities markets are not going to resolve deep structural deficiencies in global Credit and economic “system”.

    The above quote is only a small part of this interesting post on the Prudent Bear. You really should bookmark this site if you want to understand how serious world financial problems have become. I’m not saying we are facing a nuclear winter – that is not part of my personality but a quote at the beginning of Noland’s article is worth repeating - "Anyone who isn't really *concerned* doesn't understand the situation."

    Noland finishes as follows: I expect the markets will be confronted by myriad troubling European issues. From the markets’ perspective, the Ukraine crisis has been resolved. Putin buckled under the pressure of Western economic sanctions, in another win for contemporary finance. I suspect this thinking is way too optimistic. Actually, I believe Putin is determined that Western sanctions don't win. And there were some rather ominous warnings this week regarding the potential consequences of “blackmailing” Russia. So don’t be surprised if Putin turns the tables and blackmails the West (i.e. if sanctions are not lifted there will be a renewed land grab in Ukraine, along with a more belligerent stance generally).

    And while the focus was more on market volatility and the Ebola virus, the geopolitical backdrop worsens by the week. Putin and Beijing seem to be singing from the same hymnbook, as the Chinese turned more outspoken in blaming the U.S. for the Hong Kong protests (and other “color revolutions”). The situation in the Middle East becomes more alarming by the week. Overall, the gap between disconcerting global prospects and ebullient securities prices is as wide as ever. Clearly, central bankers would hope to maintain this gap – to defend the Truman Show World. And I don’t believe it is an extremist view to see this as one big financial scheme. Moreover, it’s not extremist to fear how things will play out when confidence wanes - when this scheme falters. Actually, the extremists are the inflationists that believe printing money will resolve the world’s ills. The Fed has been neither “wise” nor “courageous.” Have we not seen enough already?

    Interested in the gold standard? Read this post from David Stockman/ZeroHedge written by Keith Weiner - The Problem With Central Bank Money Printing Is A Debt Spiral, Not Runaway Consumer Inflation - After President Nixon’s gold default in 1971, many people advocated a return to the gold standard. One argument has been repeated: consumer prices are rising. While this is true, it wasn’t compelling in the 1970’s and it certainly doesn’t fire people up today. Rising prices—what most people think of as inflation—is a dead-end, politically. People care about rising prices, but not that much.

    There is a greater danger to fixating on this one argument. What if you make a really bad prediction? The Fed did massively increase the money supply in response to the crisis of 2008. Many gold advocates predicted skyrocketing prices—even hyperinflation. Obviously, this has failed to materialize so far.

    Preachers of imminent dollar collapse have lost credibility. Worse yet, they have poisoned the well. People who were once receptive to the benefits of gold have lost interest (their selling has exacerbated and extended the falling gold price trend). And why shouldn’t they walk away? They can see that some Armageddon peddlers have a conflict of interest, as they are also gold and silver bullion dealers.

    The gold standard has nothing to do with buying gold in the hopes that its price will go up. It has little to do with the price of anything—gold or consumer goods.

    There’s no doubt that the fiat dollar harms us in many ways. However, the chronic rise of prices is the least of the wounds it inflicts. If prices could rise for a hundred years, then there’s no reason they couldn’t go on rising for another century—or a millennium. There is no finite endpoint for rising prices.

    There is a finite limit to the abuse of credit, before the dollar will fail.

    The interest rate is a prime driver of systemic failure. Interest has been falling for 33 years, since its peak in 1981. What happens when it hits zero? I don’t refer to the Fed funds rate, discount rate, or any short-term rate. I mean the 10-year bond or even the 30-year bond. In the U.S., the 10-year bond pays 2.3%. In Germany, it has already fallen to 0.91% (not a typo, 91 basis points). In Japan, it’s close to half of that, at 0.5%.

    Naturally, the cheaper the rate, the more it encourages borrowing. When the rate keeps falling, the borrowing keeps rising. Is there a failure point for debt?

    Along with encouraging borrowing, low and falling interest discourages savings. Isn’t that perverse, to discourage saving? What happens when an entire society doesn’t save?

    Our financial system has suffered an escalating series of crises. Each crisis has grown out of the fix applied to the previous one.

    The crisis of 2008 was different. No matter what the Fed has attempted, they have not been able to create even the temporary appearance of recovery (other than in asset prices). It’s not merely that growth will be slow, or slower than it should be in some theoretical ideal economic world.

    There will be no recovery while our monetary cancer rages, unchecked. We must rediscover the gold standard, which is the only cure.

    Our ancient ancestors adopted money to enable them to coordinate their productive activities in their economies. They could only go so far using barter, but money made possible the division of labor and hence specialization. Lubricated by money, there is no limit to economic growth and the development of wondrous products. For example, today we have access to the Internet on a thin handheld device.

    The dollar still does perform this function, which is why it hasn’t collapsed yet. However, it is slowly failing. It is increasingly imposing perverse incentives. The dollar is hurting us by encouraging us to destroy precious capital in numerous ways.

    The Gold Standard Institute is sponsoring an event in New York City on November 1. I will be speaking about the destruction being wrought by the dollar, including a detailed discussion of the problems mentioned above. I will also propose a practical transition path to the gold standard.

    You are cordially invited to join us for a presentation of ideas you won’t get anywhere else. New York Gold Conference - November 1, 2014 @ 1:00 pm – 5:00 pm - 3 West Club - 3 West 51st Street - New York,NY 10019 – Cost $50, $25 for students.

    The walk-in cash trade was steady and so were the phones. The general public seems content with this market and continues to buy both gold and silver bullion. I still wonder about why we seem to be hovering around $1240.00. There is enough tension in the air to push prices higher but we have not seen a big follow through.     

    The GoldDealer.com Unscientific Activity Scale is a “5” for Monday. The CNI Activity Scale takes into consideration volume and the hedge book: (last Tuesday – 4) (last Wednesday – 3) (last Thursday – 4) (last Friday – 5). The scale (1 through 10) is a reliable way to understand our volume numbers. The Activity Scale is weighted and is not necessarily real time – meaning we could be very busy and see a low number – or be very slow and see a high number. This is true because of the way our computer runs what we call the “book”. Our “activity” is better understood from a wider point of view – perhaps a week or two. If the numbers are generally increasing – it would indicate things are busier – decreasing numbers over a longer period would indicate volume is moving lower.  

    Email confirmation using a PDF File when buying or selling is functional. It also includes the various forms of payment and includes bank wire instructions. And you can now see your actual invoice or purchase order on your computer screen.

    When you buy or sell please check to see if we have your current email on file and that your computer will accept our email (no spam).

    About shipping information – when buying or selling your rep will walk you through your current mailing information. Thanks for keeping us up to date if you have moved.

    Our four flat screens downstairs with live independent pricing (BullionDesk.com) are a big hit with the cash trade. Live pricing moves all the buy/sell product prices on a real time basis. Yes - you can visit the store with cash and walk away with your product. Or you can bring product to the store and walk away with cash. When buying from us remember if you exceed $10,000 in cash (the real green kind) a Federal Form is necessary.

    In addition to our freshly ground organic coffee offered visitors throughout the day we have added cold bottled water, cokes and Snapple. We have also added fresh fruit in a transparent attempt to disguise our regular junk food habits.

    Like us on Facebook and follow us on Twitter @CNI_golddealer.

    Thanks for reading - your friends at GoldDealer.com. Enjoy your evening and we appreciate your business.

    Disclaimer – The content in this newsletter and on the GoldDealer.com website is provided for informational purposes only and our employees are not registered financial advisers. The precious metals and rare coin market is random and highly volatile so it may not be suitable for some individuals. We suggest before deciding on a course of action that you talk with an independent financial professional. While due care has been exercised in development and dissemination of our web site, the Almost Famous Gold Newsletter, or other promotional material, there is no guarantee of correctness so this corporation and its employees shall be held harmless in all cases. GoldDealer.com (California Numismatic Investments, Inc.) and its employees do not render legal, tax, or investment advice.

    Gold Closes Soft - Markets However Remain Edgy

    Last updated 3 days ago

    Commentary for Friday, Oct 17, 2014 (www.golddealer.com) – Gold closed down $2.30 today at $1238.10 so this makes for the second day of smaller losses in a market which was a combination of fear driven and oversold coming together.

    And the dollar gained strength today creating some drag on the price of gold. The greenback was stronger because data from the US Commerce Department showed a 6.3% increase in new-home construction starts.

    But gold does look like it is working hard around the $1240.00 mark. Still it did finish up $17.00 on the week and it did well last week moving higher by $29.00.

    So is gold running out of gas on its recent bounce higher? It is still too soon to tell but a stall around $1240.00 is not good. Gold must show some strength above $1240.00 and continue to push higher into the $1280.00 range before the bulls feel more comfortable. Without this confirmation the recent strength we have seen is just a bounce at the lower end of a technically impossible market sell-off which began in early July when gold was moving on both sides of $1320.00.

    Whether the gold market will reinvent itself really centers on the next move from our Federal Reserve and they are meeting next week. They are however in a bit of a bind at this point because they have committed themselves to ending quantitative easing this month.

    Just yesterday the stock market opened up to the downside with lots of red and within hours of the opening James Bullard was on Bloomberg.

    This from CNBC/Rueters - Bullard: Fed may want to keep up bond buying for now

    “The head of the St. Louis Federal Reserve Bank said on Thursday the U.S. central bank may want to keep up its bond buying stimulus for now given a drop in inflation expectations.

    "Inflation expectations are dropping in the U.S., and that is something that a central bank cannot abide," James Bullard told Bloomberg television. "We have to make sure that inflation and inflation expectations remain near our target."

    "For that reason, I think a reasonable response by the Fed in this situation would be to ... pause on the taper (of bond purchases) at this juncture and wait until we see how the data shakes out into December," he said.”

    There is no way this Governor just happened to take a position contrary to his boss right in the middle of a very large stock market rout. He was sent in to quell the markets and the result was exactly what the Federal Reserve wanted – stocks rebounded.

    So what does this have to do with gold? If the Federal Reserve ends quantitative easing and the result helps makes Europe unstable world financial markets will follow our Thursday morning lead. There will be red ink all over the place – and everyone will run to the dollar and eventually gold for safe havens.

    And if they don’t end quantitative easing on time the metals markets will have just what it needs to push into higher territory - the theory that all governments of the world are stuck producing more fiat money to support a system which is now addicted to near zero interest rates.

    No one knows how this mess will play out but it’s easy to see that gold will remain volatile until the Federal Reserve can figure out a way to back away from this tiger.

    Silver closed down $0.10 at $17.28 and remains quiet into the weekend – like gold the big order guys are waiting into this weekend. Silver closed up $0.03 this week after moving higher by $0.47 last week. Still I expected more physical buying at these depressed levels – the World Mints are striking new coins to beat the band and consumers are still buying big but the regular across the counter bullion business seems to have cooled off. The two big buyers of circulated silver dollars are full so premiums on real silver dollars (1878-1935) are moving lower.

    Platinum closed up $10.00 at $1262.00 and palladium also closed up $10.00 at $756.00. Palladium might prove to be the dark horse bet. It peeked recently at $900.00 and is now moving lower over a fear of a slowdown in car sales. The car industry is driven by low interest rates and people always need cars so I might be looking for a counter trend with palladium.

    Precious Metal Closes & Dollar Strength – Oct. 13 through Oct. 17 – 2014

                Gold            Silver        Platinum       Palladium   Rhodium   Dollar Index

    Mon    $1229.30     $17.29       $1260.00        $785.00        $1230.00   85.53

    Tues    $1233.60     $17.35       $1272.00        $794.00       $1230.00   85.83

    Wed    $1244.10     $17.41        $1261.00        $764.00       $1230.00   81.84

    Thurs  $1240.00    $17.38         $1252.00        $746.00       $1230.00   84.87

    Fri       $1238.10     $17.28        $1262.00        $756.00       $1230.00   85.11

    Our Patented Employee Survey - Gold's Direction Next Week?

    Of course it’s not really patented but we do have some fun along the way. This is what the GoldDealer.com employees think – 4 believe gold will be higher next week – 6 think gold will be lower and 2 believe it will be unchanged.

    Our Patented Customer Survey - Gold's Direction Next Week?

    Like the employees our actual customers were given three choices – up – down – unchanged. We limited the survey to a random sampling of 100 transactions – unscientific yes but worth considering because these people actually took action: 52 people thought the price of gold would increase next week – 28 believe the price of gold will decrease next week and 20 think prices will remain the same.

    This commentary from one of my favorite traders – Peter Hug (Kitco): Nowhere to Hide? Not True! “I guess I should qualify the following, because if you are an American this may not be as valid, but it may become more urgent as time moves forward. Today the U.S. equity markets are getting slaughtered, as U.S. economic growth is beginning to wane. The 10-year bond travelled under 2%, as investors were terrified and looking for a safe haven. Europe is on the verge of another economic Armageddon and geo-political risks continue to accelerate in the Middle East.  Where to hide?  Well gold popped some $20, but as an American investor so what, what’s the big deal. I agree:  from the beginning of the year gold is up a paltry 3% in US$ terms.  But what if you’re a Canadian or a European? Canada has seen its stock market evaporate to the tune of 12%, in the last few weeks, as commodity complexes disintegrate, against the back drop of global deflation. Gold in Canadian terms started 2014 at +/- $1,280 and is now at +/- $ $1,405.  For a German, gold in Euro terms has increased 10.3% since the beginning of the year. The fundamental drop in value for the C$/US$ is 6% since the beginning of the year and for the Euro the drop has been 6.5%.  So for the Canucks and the Europeans, gold has provided what it is intended to provide, protection. Our American friends may be next.”

    The above quote from Hug is important and the theme is a favorite of mine lately – gold bullion may not look too bad if your measure of value is not the US dollar.

    Owning gold bullion provides that little insurance edge needed when considering unbacked paper money which is created because of government edict. I know – you have heard that plenty of times and I’m not saying that gold bullion is the answer to all problems in this world.

    But it does provide solace – who knows what will happen in a world which seems crazier than it has ever been - given the progress we have made since the end of the cold war.

    I had been in the gold bullion business 17 years when Reagan challenged the Russians to “tear down that wall” and it looked like peace was breaking out all over the world. President Reagan made that speech at the Brandenburg Gate, West Berlin, Germany in 1987.

    You might believe that collective world thinking has made giant strides since that time but in fact the world is more dangerous.

    This threat however is not from an arms race but from a currency race.  

    Just holding gold bullion in your hand – under your own control and outside the normal financial channels means something to real hard asset people.

    The fact that holding real gold in your own hand also adds a certain sensibility to your life and that part is thrown in for free.

    The walk-in cash trade picked up nicely today but the phones were just average for a Friday. Interestingly the talk about rhodium bullion seems to be picking up but we have seen no big pop in sales volume.    

    The GoldDealer.com Unscientific Activity Scale is a “5” for Friday. The CNI Activity Scale takes into consideration volume and the hedge book: (Monday – 4) (Tuesday – 4) (Wednesday – 3) (Thursday – 4). The scale (1 through 10) is a reliable way to understand our volume numbers. The Activity Scale is weighted and is not necessarily real time – meaning we could be very busy and see a low number – or be very slow and see a high number. This is true because of the way our computer runs what we call the “book”. Our “activity” is better understood from a wider point of view – perhaps a week or two. If the numbers are generally increasing – it would indicate things are busier – decreasing numbers over a longer period would indicate volume is moving lower.  

    Email confirmation using a PDF File when buying or selling is functional. It also includes the various forms of payment and includes bank wire instructions. And you can now see your actual invoice or purchase order on your computer screen.

    When you buy or sell please check to see if we have your current email on file and that your computer will accept our email (no spam).

    About shipping information – when buying or selling your rep will walk you through your current mailing information. Thanks for keeping us up to date if you have moved.

    Our four flat screens downstairs with live independent pricing (BullionDesk.com) are a big hit with the cash trade. Live pricing moves all the buy/sell product prices on a real time basis. Yes - you can visit the store with cash and walk away with your product. Or you can bring product to the store and walk away with cash. When buying from us remember if you exceed $10,000 in cash (the real green kind) a Federal Form is necessary.

    In addition to our freshly ground organic coffee offered visitors throughout the day we have added cold bottled water, cokes and Snapple. We have also added fresh fruit in a transparent attempt to disguise our regular junk food habits.

    Like us on Facebook and follow us on Twitter @CNI_golddealer.

    Thanks for reading - your friends at GoldDealer.com. Enjoy your weekend and we appreciate your business.

    Disclaimer – The content in this newsletter and on the GoldDealer.com website is provided for informational purposes only and our employees are not registered financial advisers. The precious metals and rare coin market is random and highly volatile so it may not be suitable for some individuals. We suggest before deciding on a course of action that you talk with an independent financial professional. While due care has been exercised in development and dissemination of our web site, the Almost Famous Gold Newsletter, or other promotional material, there is no guarantee of correctness so this corporation and its employees shall be held harmless in all cases. GoldDealer.com (California Numismatic Investments, Inc.) and its employees do not render legal, tax, or investment advice.

    Gold Push Softens Around $1240.00 - Technical or Tired?

    Last updated 4 days ago

    Commentary for Thursday, Oct 16, 2014 (www.golddealer.com) – Gold closed down $3.60 at $1240.50 today. So the recent push to higher ground may be in need of a rest – or the push may be running out of gas.

    I’m not saying gold is finished with this recent run – there are too many things going on like perhaps the Federal Reserve is having second thoughts about its bond buying program now that Europe is having more problems.

    But this most recent close does not look like much in the way of profit taking – it may be just book squaring getting ready for the weekend. But in any case the real buzz in the physical market has left for an early weekend.

    The stock market was a big flop on the morning bell but recovered – even when we were looking at a great deal of red ink across the DOW gold showed little reaction – down a few bucks. I would have expected more considering the mess in Europe but today’s action closed on a whisper and the stock market seemed to get legs and closed with some respect.

    The really big question now is whether the Federal Reserve will use the “global slowdown” as a reason to delay interest rate hikes.

    Chuck Butler thinks the Fed will finish quantitative easing on schedule and then be forced to bring it back creating an economic implosion – interesting thought which would push gold prices higher.

    But these markets remain conflicted – the US economy still looks fairly good with higher industrial production announced today and platinum traded lower. By the way platinum is now $12.00 over the price of gold so consider trading gold bullion for platinum bullion.

    Silver closed down $0.03 today at $7.46 – this market too looks like it is losing physical momentum. The $1000 face 90% silver bag is looking cheap premium wise.

    Platinum closed down $9.00 at $1252.00 and palladium closed down $18.00 at $746.00.

    Chicago Mercantile Exchange reports for the last 5 trading days – so we are looking at the trading volume numbers for the December Gold contract: Thursday 10/09 (165,358) - Friday 10/10 (121,360) - Monday 10/13 (119,916) - Tuesday 10/14 (113,551) and Wednesday 10/15 (258,099). Look at the volume number for yesterday – almost double the average.

    There is no way gold is going anywhere facing a strong dollar. And if you have been following the Dollar Index the yearly high is 85.75 and the yearly low is 78.91. As of this writing its trading at 84.87 with a negative daily bias but it’s easy to see we are at the higher end of its yearly trading range which creates trouble for gold. And there are some who believe the dollar is on a tear and will go higher. 

    But here are a few comments from someone who understands the currency markets. This from Chuck Butler (EverBank World Markets) – “The bond guys (& girls) have their fingers on the pulse of the U.S. economy. They always have, and didn't like having the conn in bonds taken away from them by the Fed, during their 5 years of Quantitative Easing / QE. For instance, for more years than I care to mention, it was a given that an inverted yield curve for Treasuries, indicated that a recession in the U.S. was on the way. And when Bond traders rally bongs, which mean bond prices go up, and yields go down, it simply means they don't see good things for the economy. So, what are the bond traders telling us now? Well, unless there's outside interference from the Fed, which I don't believe there is, except for their remaining tid-bits of QE that will be wiped clean at the end of this month, according to the Fed, what we have here in the U.S. is an economy that's going nowhere, despite what the Fed members, the economists, and flag wavers for the Gov't, tell us, the bond traders are not buying it. Of course I never did buy it. The bond guys could have just checked with me and I could have saved them the losses they incurred when Treasury yields rose from 1.80% to 3%. Because look at them now? They're back below 2%.

    And that all plays nicely in the sandbox with my call last year that the Fed will not be away from the QE table very long, before they come back to administer more QE to this going nowhere economy. And when they do that, I feel that the markets will come unglued. They will feel as though the Fed mislead them, and will take away credibility the Fed had built up. That won't be a good thing for the dollar in my eye.

    But for now, we deal with the Clingons. You know those clinging on to the idea that this is going to be a multi-year rally for the dollar. That's OK, we've had to deal with these Clingons in 2005, 2008, 2011, and again now. And they pack a powerful punch when they have the conn, like they do now. And will continue to have until the rest of the markets catch up with what the bond guys are telling us. And what Chuck has told you for some time now.”

    If Chuck is right the longer term implications for gold are big. The currency markets are always volatile but longer term economic thinking has predicted a lower dollar and lower euro because of loose economic policy. The thought being that while inflation hurts the saver (if there are any left in today’s world) but helps the borrower by paying back debt with inflated dollars. This scenario is traditional gold rhetoric but outside of immediate safe-haven buying is the only real solution which will support longer term gold prices.

    This from Ambrose Evans-Pritchard (The Telegraph) – BIS warns of “violent” reversal of global markets – “The global financial markets are dangerously stretched and may unwind with shock force as liquidity dries up, the Bank of International Settlements has warned.

    Guy Debelle, head of the BIS’s market committee, said investors have become far too complacent, wrongly believing that central banks can protect them, many staking bets that are bound to “blow up” as the first sign of stress.

    In a speech in Sydney, Mr Debelle said: “The sell-off, particularly in fixed income, could be relatively violent when it comes. There are a number of investors buying assets on the presumption of a level of liquidity which is not there. This is not evident when positions are being put on, but will become readily apparent when investors attempt to exit their positions.

    “The exits tend to get jammed unexpectedly and rapidly.”

    Mr Debelle, who is also chief of financial markets at Australia’s Reserve Bank, said any sell-off could be amplified because nominal interest rates are already zero across most of the industrial world. “That is a point we haven’t started from before. There are undoubtedly positions out there which are dependent on (close to) zero funding costs. When funding costs are no longer close to zero, these positions will blow up,” he said.

    The BIS warned earlier this summer that the world economy is in many respects more vulnerable to a financial crisis than it was in 2007. Debt ratios are now far higher, and emerging markets have also been drawn into the fire over the last five years. The world as whole has never been more leveraged.

    Debt ratios in the developed economies have risen by 20 percentage points to 275pc of GDP since the Lehman Brothers crash.

    The new twist is that emerging markets have also been on a debt spree, partly as a spill-over from quantitative easing in the West. This has caused a flood of dollar liquidity into these countries that they have struggled to control. It has pushed up their debt ratios by 20 percentage points to 175pc, and much of the borrowing has been at an average real rate of 1pc that is unlikely to last.

    China was able to act as a stabilizing force during the global downturn of 2009, letting rip with an immense burst of credit. These buffers are now largely exhausted. All of the BRICS (Brazil, Russia, India, China, South Africa) countries have hit structural limits, and face difficulties of one form or another.

    Mr Debelle said the markets may at any time start to question whether the global authorities have matters under control, or whether their pledge to hold down rates through forward guidance can be believed. “I find it somewhat surprising that the market is willing to accept the central banks at their word, and not think so much for themselves,” he said

    The biggest worry is a precipitous sell-off in the bond markets once the US Federal Reserve and the other major central banks begin to tighten in earnest. Mr Debelle cited the US bond crash in 1994, but warned that it could be even more violent this time with a “fair chance that volatility will feed on itself”.

    The picture is further complicated by a fall in the depth and inventory of market makers, the side-effect of new regulations that have raised costs and caused firms to exit this specialist business. “Market liquidity is structurally lower now than it was in the past. The question today is whether there is too little capacity. When volatility returns, it may well rise quite rapidly,” he said.

    Mr Debelle may be especially sensitive to the risks, given his ring-side seat in Australia where authorities are grappling with a housing bubble and a commodity shock from China. Yet his warning is global: investors have taken on too much risk, and the illusion of liquidity can vanish almost overnight. “That strikes me as a dangerous combination and unlikely to be resolved smoothly,” he said.”

    The above is typical of commentary coming out today regarding Europe. Too much debt, no real changes in the old guard, dependence on quantitative easing – all of which begs the question: have we learned anything from the big financial meltdown of 2008?

    But if there is a blow up in Europe it does not mean gold will necessarily benefit immediately. Any real financial blowup will eventually attract the physical gold buyer but the real winner if someone pushes the panic button is usually the US dollar. Yep, you can’t lose on the short term if you choose the good old American buck.

    That’s why it’s so popular and as a consequence interest rates remain low.

    And gold could also be hurt in the big blow up scenario because it is the best form of instant cash – that being needed to cover all the leverage and derivative junk floating around and passing as “good investments” these days.

    But after the fires die down gold will benefit – especially when the world wakes up to the financial inconsistencies and bubbles created when governments simply print money which is not connected in some way to their gross domestic product.

    So a word to the wise – establishing the gold “fire wall” is way better and less costly before the dam cracks – afterwards is much more expensive.

    The walk-in cash trade was surprisingly quiet today and so were the phones.   

    The GoldDealer.com Unscientific Activity Scale is a “4” for Thursday. The CNI Activity Scale takes into consideration volume and the hedge book: (last Friday – 4) (Monday – 4) (Tuesday – 4) (Wednesday – 3). The scale (1 through 10) is a reliable way to understand our volume numbers. The Activity Scale is weighted and is not necessarily real time – meaning we could be very busy and see a low number – or be very slow and see a high number. This is true because of the way our computer runs what we call the “book”. Our “activity” is better understood from a wider point of view – perhaps a week or two. If the numbers are generally increasing – it would indicate things are busier – decreasing numbers over a longer period would indicate volume is moving lower.  

    Email confirmation using a PDF File when buying or selling is functional. It also includes the various forms of payment and includes bank wire instructions. And you can now see your actual invoice or purchase order on your computer screen.

    When you buy or sell please check to see if we have your current email on file and that your computer will accept our email (no spam).

    About shipping information – when buying or selling your rep will walk you through your current mailing information. Thanks for keeping us up to date if you have moved.

    Our four flat screens downstairs with live independent pricing (BullionDesk.com) are a big hit with the cash trade. Live pricing moves all the buy/sell product prices on a real time basis. Yes - you can visit the store with cash and walk away with your product. Or you can bring product to the store and walk away with cash. When buying from us remember if you exceed $10,000 in cash (the real green kind) a Federal Form is necessary.

    In addition to our freshly ground organic coffee offered visitors throughout the day we have added cold bottled water, cokes and Snapple. We have also added fresh fruit in a transparent attempt to disguise our regular junk food habits.

    Like us on Facebook and follow us on Twitter @CNI_golddealer.

    Thanks for reading - your friends at GoldDealer.com. Enjoy your evening and we appreciate your business.

    Disclaimer – The content in this newsletter and on the GoldDealer.com website is provided for informational purposes only and our employees are not registered financial advisers. The precious metals and rare coin market is random and highly volatile so it may not be suitable for some individuals. We suggest before deciding on a course of action that you talk with an independent financial professional. While due care has been exercised in development and dissemination of our web site, the Almost Famous Gold Newsletter, or other promotional material, there is no guarantee of correctness so this corporation and its employees shall be held harmless in all cases. GoldDealer.com (California Numismatic Investments, Inc.) and its employees do not render legal, tax, or investment advice.

    Famous Canadian Pennies Sell at Auction

    Last updated 4 days ago

    Much like American pennies, Canadian cents were considered by most Canadians to be impractical pocket weights. In fact, the Canadian penny was withdrawn from circulation in 2012. While modern small-denomination coins may be worth less than their weight in metal, there are a handful of pennies out there valued at a quarter of a million dollars or more. Continue reading to learn about Canada’s most valuable pennies, one of which sold for $253,000 at a 2013 Heritage Auction.

    A Three-Penny Show
    Called “dot cents” because of the dot stamped into their design to distinguish them from pennies that were minted under the reign of George V without a dot, only three of these famous 1936 Canadian pennies produced under the brief reign of Edward VIII are known to exist. While some experts suspect many more were minted and simply melted down after George VI took the throne, there is no evidence of this.

    Why So Valuable?
    Like most valuable coins, the rarity of the dot cents certainly boosts their value. The mystique behind what happened and why only three of these copper pennies exist certainly does not hurt. The mystique surrounding the pennies extends beyond their initial stamping to the hands that have possessed them over the years.

    Stolen and Returned
    Avid American coin collector John Jay Pittman held possession of all three dot cents for quite some time. In 1964, however, one of the pennies was stolen alongside other rare coins by thieves who broke into his home. It was returned years later, anonymously, alongside other rare coins that were stolen from the collector.

    California Numismatic Investments may not be in possession of any of the three Canadian “dot cents” discussed in this article, but we do have some of the rarest and most valuable coins and precious metals in existence. To speak with a coin dealer about our inventory or the processes of buying and selling rare coins with us, call us toll-free at (888) 612-2679.

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