Wednesday, October 13, 2010

20101013 PM, gold eagle coin premium

Dow 11,096.08 +75.68
Nasdaq 2,441.23 +23.31
SP500 1,178.10 +8.33
10-YrBond 2.4310% +0.09

Apparently US Mint gold eagle coins premiums have collapsed from $60 per coin to nearly nothing. This is supposedly because there is so much retail customer coin selling that dealers are not offering the premiums to their selling customers. If the gold price goes down, it is likely the premium will be restored which will effectively buffer any price decline. In other words, when retail customers are selling their gold coins and premiums disappear, it can be a good time to take the other side of the trade and buy those coins.
Gold spot is 1372.40. US Mint gold eagle coin offer is 1427.30 and bid is 1402. Let's keep an eye on the premium.

GLD 134.07 +2.11
SLV 23.49 +0.65
PTM 20.15 +0.30

XLE 59.14 +0.71
XLF 14.86 +0.01

VXX 14.20 -0.30

Potential longs: gold, silver, RBY, TRE.

MDW 0.645 +0.021. Bought at .65. 52 week range 0.38 - 1.04. Used funds from small closed position (today) to put into this exploration firm.

ANO 1.49 +0.15 (11.19%)

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