The precious metal markets, gold in particular, are looking eerily similar to the markets of the late 1960's when the central banks were desperately trying to keep the price of gold firm at $35.20 an ounce. But the forces of the market, backed by an unprecedented desire by investors big and small for the security of gold, was pressing the walls of the banks to the breaking point.
Typically, the market turnover for gold was about 5 tonnes a day, but that rapidly escalated during 1967 when the London gold market had to sell gold faster than it could be replenished from the mines. In a last ditch effort to keep a lid on prices and project a false aura of surplus, gold was flown from the United States to replenish the gold vaults in London. But no matter how much they brought in, from whatever sources, it wasn't enough.
Volume began to rapidly spike and out going gold went from 5 tonnes a day to 20, 30 and then 50 tonnes! But the thirst for the security of gold was just beginning. On Friday March 8th 1968, 100 tonnes of gold was distributed in a single day. On Wednesday the following week, 175 tonnes of gold were sucked out of the vaults and that was followed by Thursday when 225 tonnes was gobbled up!
The Queen of England was forced to intercede, and a “banking holiday” was declared closing the London gold market for 2 weeks. When it reopened, the banks gave up trying to hold back the tide of rising gold prices, and by February of 1980 market forces had driven the price from $35.20 per ounce to $850.00 per ounce. The rise was only halted when the US Federal Reserve instituted punishingly tight fiscal policy driving interest rates to 20%.
Once again, in 2010, gold has risen over $800 per ounce and the wise are buying gold and silver right now, as fast as they can, before the price rises still higher.
To go live to the current auctions for both gold and silver coins and bullion, go to our Gold Silver Source website. In one place, you'll find auctions for every type of gold, silver and precious metals and be able to find some outstanding bargains as you seek to increase your own gold and precious metal portfolio.
Don't overlook the “Other” categories where some of the best bargains can be found when auction sellers unfamiliar with the selling format list items here rather than in a more specific category. This results in less bidders and typically, lower final bid prices. Bad for the seller but good for the buyers.
Happy hunting!
