Video: Junior market dominated by ‘the lame, the halt and the blind,’ says Rule
Over two-thirds of today’s junior miners are essentially worthless, says resource speculator Rick Rule.
According to figures from the US Mint website sales of American Eagle gold coins – a good indicator of overall gold demand in the US – this month already add up to 85,500 ounces.
That surpasses the 76,000 ounces for the whole of December.
127,000 ounces were sold during January last year and 133,000 ounces during the same month in 2011, the only times sales had reached triple digits since 2000.
With three more weeks to go, at the current rate sales of the popular coins should easily surpass those tallies.
You have to go back to 1999 to top the likely ounces to be sold this month.
January 1999 – the best overall sales month in that blockbuster year – the Mint moved 281,000 ounces, no doubt because the approaching millennial change inspired collectors.
Of course 281,000 ounces in January 1999 in terms of value is not close to today’s g0ld price.
At the start of 1999 an ounce of gold could be had for $291 which translates to roughly $82 million worth of coins sold.
The value of the 85,500 ounces sold over the first 10 days of 2013 already top $140 million.
