AMERICAN EAGLE GOLD COIN SALES QUADRUPLE FROM A YEAR EARLIER

Yet U.S. bullion dealers noted that rising prices are actually prompting Americans to buy more in what is now seen as a “coin buying frenzy”; these people are betting on volatile currencies and global economic concerns lifting prices even higher. 

The U.S. Mint is a notable beneficiary of gold’s latest rally, with Newsmax reporting that the Mint sold 83,500 ounces of American Eagle gold coins in February alone. This means that gold coin sales quadrupled on a year-on-year basis. Likewise, American Eagle silver coin sales reached 4.78 million ounces in February, translating to a 58% increase compared to a year ago.

Some believe that this is part of Russia’s concentrated plan to undermine the U.S. dollar and the West in general. Prominent German newspaper Die Welt is one proponent of this theory, with the paper’s economists speculating that gold is being used to stand in the way of Western currencies, and going as far as to say that Russia’s acquisitions are a part of Putin’s plan for world domination. 

DYI Quick Comment:  Russia's plan for world domination?  Russia is attempting to bolster the sagging Ruble as their economy is mired in a steep recession due to low oil and gas prices.  Russia's problems are staggering; early death especially for Russian males due to massive alcoholism, birth rate significantly below replacement, an unbalanced economy tilted to natural resources.  The list is endless.  If Putin has plans for world domination it will only be a fantasy.

Deutsche Bank also mentioned holding costs as a reason to store value in gold. Even though it’s sometimes looked down upon as a non-yielding asset that costs money to store, the yellow metal is quickly becoming appreciated in a world of negative interest rates.    

DYI Comments:  With fractional lending banks loan money out of thin air which predominately goes into the private markets.  Currently world wide there has been an increase in bankruptcies causing this once bank money creation(debt) to disappear causing deflation.  Central banks are money printing in an attempt to reflate the system.  Short term they will fail as the forces currently are far stronger for deflation as private sector debt continues to implode.  As governments continue to deficit spend to fill the economic gap these borrowings will have to be paid.  Once the private sector is finished deflating governments will need to pay off their borrowings. They rarely go bankrupt as happens in the private sector they will raise taxes and the remainder will be inflated away.  I anticipate the 2020's being noted for high taxes, labor shortage(Boomers retiring) and HIGH INFLATION.

DYI