Gold sells off for fifth straight day as summer market malaise continues
Royal Canadian Mint reports robust demand for bullion coins in first quarter

(USAGOLD – 7/22/2021) – Gold sold off for the fifth straight day in early trading reflecting the general sense of malaise wafting through financial markets this summer. It is down $8 at $1797. Silver is down 19¢ at $25.14. The July slowdown reflects a considerable and perhaps justifiable pause in investor interest coming off the torrid pace in physical metal purchases during the first half of the year. Along these lines, the Royal Canadian Mint reports robust sales of bullion coins in the first quarter of 2021, according to a report published at Wealth Professional Canada.

“Whether it’s inflation fears or investors simply adding diversification to portfolios given the nerve-shredding ride of 2020,” it reads, “Royal Canadian Mint has reported a strong performance in Q1…Revenue from precious metal businesses increased to $852 million in Q1 compared to 2020 Q1 performance of $465.2 million. Gold bullion volumes increased more than 65% quarter over quarter and were 328.5 thousand ounces (Q1 2020 – 198.1 thousand ounces) while silver bullion volumes increased 52% and were 9.9 million ounces (Q1 2020 – 6.6 million ounces).”

Chart of the Day

The inflation-adjusted price of silver
(Based on the Bureau of Labor Consumer Price Index, 1970 to present)

line chart showing the inflation adjusted price of silver 1970 to preset

Chart courtesy of Macrotrends.net 

Chart note:  “If we account for inflation,” writes analyst Peter Krauth in a piece posted in May at the FXEmpire website, “and that’s massively understated ‘official inflation,’ then silver prices peaked at $120 in 1980 and around $57 in 2011. Today’s price near $24 is still well below those levels, suggesting a lot of upside remains ahead. In fact, at $24 today versus the inflation-adjusted $120 in 1980, silver is currently about 80% below that peak.” He believes “$100 silver is well within reach.” (Silver is now trading well over the $26 level.)

 

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