Will Elon Musk’s DOGE Get Rid of the Penny?
Posted onPresident Donald Trump signed an executive order on January 20, 2025 to establish DOGE: the Department of Government Efficiency, led by Elon Musk, with a goal to cut spending.
A number of programs, from diversity, equity, and inclusion (DEI) to Daylight Saving Time to the venerable one-cent piece—yes, the penny—are on the potential chopping block.
In an X post, DOGE wrote that it costs more than 3 cents to make a penny, which cost taxpayers over $179 million through 2023.
It’s true. The cost to make a penny jumped to 3.69 cents, according to the 2024 U.S. Mint annual report. That marks the 19th consecutive year that penny production costs have “remained above face value.” In 2024, the U.S. produced about 3.23 billion new pennies, according to the U.S. Mint. Pennies were the most produced coin in both 2023 and 2024.
In an increasingly cashless world, could Elon Musk be right? Is it time to ditch the penny? Cash usage has been declining due to the prevalence of credit cards, and debit cards, and the rise of mobile payment apps.
But, Americans still carry cash and use it. Forty-four percent of Americans say they use cash for some of their purchases, while 14% say they use it for all their purchases, according to a Pew Research Center study.
3 reasons DOGE may not be able to get rid of the penny
- To make change. For those Americans who do pay in cash, the penny is an essential tool to make change. How would you make change for an $11.97 purchase if you pay with a $20 bill without the penny?
- Getting rid of the penny could make things more expensive. Canada did away with its penny in the early 2010s—and now purchases there are rounded to the nearest nickel. For example, a $11.83 purchase becomes $11.85 in Canada now.
- Congress oversees our money. According to the U.S. Constitution, it is Congress (not DOGE) that is responsible for overseeing our money and coinage.
How much could the U.S. save if it got rid of the penny? Stopping production of the 1-cent piece could save taxpayers up to $100 million annually, according to a 2022 Federal Reserve report. Whether or not DOGE takes action to discontinue it, collectors will always prize and covet many special American 1-cent pieces. Halting future production of the penny could increase numismatic demand for existing rare pennies. Check out Blanchard’s current inventory of small cents here.
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Fed Hits Pause Button on Rate Cuts. Gold Starts January Strong
Posted onJust nine days after President Trump was sworn in as our nation’s new president, the Federal Reserve held interest rates steady at 4.25- 4.50%. Inflation
remains above the Centrals bank’s target and there is widespread uncertainty on how the new administration’s policies will impact the economy and financial markets.
This uncertainty likely played into the Fed’s decision to stand pat. Today’s decision from the Fed comes after three consecutive interest rate cuts in 2024.
For now, Fed chairman Jerome Powell side-stepped President Trump’s demand that the central bank lower interest rates, which the president announced to global business leaders last week at the World Economic Forum in Davos, Switzerland.
Gold Hits 3 Month High in Late January
In the markets, gold came out of the starting gates in January, trading virtually straight up from the $2,628 area in late December to above the $2,775 level in late January, marking a three-month high for the precious metal. The stock market plunged this week on worries of overvalued technology stocks. This triggered concerns that the AI-fueled stock market bubble could be ready to pop.
Inflation Remains above the Fed’s 2% Target
Economic data released since the December Fed meeting reveals that economic growth appears to be expanding at a strong 3% pace and the labor market remains solid, but progress on moving inflation back down to the Fed’s 3% target has stalled.
Looking back, consumer prices increased 2.9% in 2024, an improvement from 4.1% in 2023. However, progress bringing inflation back to its target at 2.0% has run into challenges as American’s are now concerned that tariffs could raise the price on imported goods.
Wall Street gets its next look at inflation on Friday, when the government releases the January personal consumption expenditures price index (PCE), which is widely known as the Fed’s preferred inflation gauge.
Batten down the hatches with gold
The new year is setting up to be a volatile one for the stock market, while the outlook for gold is glittering. After gaining almost 30% last year, January’s strong start for gold signals another big year for the precious metal, with analysts widely targeting the $3,000 an ounce level as the next big upside target.
If you haven’t already, now is the optimal time to increase your allocation to gold to hedge your portfolio against losses in the stock market. If the stock market plunges, your portfolio invested in equities shrinks, while the portion of your portfolio invested in gold grows. Questions? Blanchard is here to help.
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Gold Shines as Stocks Plunge on Worries about Chinese AI Tool
Posted onGold is shining—trading just below its record high—as the U.S. stock market tumbles amid concerns that a Chinese artificial intelligence company may provide cheaper and better technology than American tech firms.
Stocks tumbled in overseas trading to start the week and at the New York open, Nvidia crashed nearly 13%, wiping out over $400 billion in market value. In early action, the S&P 500 fell over 1.54%, the Nasdaq tumbled over 2.56% and gold is trading above $2,700 an ounce—not far from its all-time record high.
What you need to know about Chinese AI company: DeepSeek
A small Chinese start-up company called DeepSeek, founded in July 2023, launched a free AI tool that jumped to the top download in the Apple store, just seven days after its release. DeepSeek needs only a fraction of the data compared to U.S. tools to make it run and cost significantly less.
DeepSeek’s AI tool has upended Wall Street because of its low development costs—just over $5 million. By comparison, U.S. technology firms have routinely spent over $100 million to develop similar AI tools.
Is this a Sputnik moment?
The release of DeepSeek’s artificial intelligence tool has been likened to the “Sputnik moment” when the Russians first released a satellite into space in 1957. The United States confronted fears that there could be a technological gap between America and the Soviet Union.
Today, DeepSeek signals that U.S. technology firms, which are on track to invest over $1 trillion in AI over the coming years according to Goldman Sachs, may be behind in the AI race. The Chinese have seemingly discovered a way to produce similar or better results with lower-quality chips and significantly lower start-up costs.
What does this mean for U.S. stocks?
DeepSeek’s successful AI release raises questions over whether investors have overvalued U.S. technology stocks like Nvidia, Oracle, Meta, and Microsoft, which have been fueling the broader stock market’s advance. Some on Wall Street are warning this is the tipping point for the AI-fueled stock market bubble, and more significant losses could lie ahead—like the dot.com crash back in 2001.
How gold can protect your wealth
After two impressive years of gains, gold has cemented its position as an essential tool for portfolio diversification and risk management. Traditionally viewed as a safe-haven asset, gold provides investors the opportunity to protect, preserve, and grow their wealth even during periods of severe stock market volatility or downturn.
Gold has a proven track record of decoupling from stocks and climbing significantly when the stock market crashes. The unique characteristic of gold allows investors to hedge their portfolio against major bear market declines in the stock market and still grow their wealth during periods of crisis.
Whether or not DeepSeek turns out to be the pin that pricks the AI-stock market bubble, investors who own up to 10-15% of gold in their portfolios report better long-term returns with lower drawdowns.
If the stock market plunges, your portfolio invested in equities shrinks, while the portion of your portfolio invested in gold grows. Gold has a proven track record as insurance for your wealth. Take action today to ensure you keep more of the wealth you’ve worked hard to earn with an increased allocation to physical gold.
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Blame it on the Night Shift: The 1955 Lincoln Double Die Penny
Posted onThe 1955 Double Die Lincoln penny is easily the most famous double die coin in U.S. numismatic history. How did this dramatic error come about? Blame it on the night shift.
In the fall of 1955, there was a severe shortage of pennies in America. So, the Philadelphia Mint took extreme measures and struck coins for 24 hours a day, in two 12-hour shifts to help alleviate the penny shortage.
What Exactly Is A Double Die?
A double die error coin is produced during the die making process. Back in the 1950’s, in order to create a die, it required multiple impressions from a working hub to create the detail. If the hub or die shifted during this process, the final die would show two distinct impressions with separation between them.
That’s what happened for the highly prized 1955 Double Die Lincoln Cent. The doubling is seen on every coin that was produced from that specific die.
What makes the 1955 Double Die Lincoln Cent so intriguing to collectors is that the doubling on the obverse is clearly seen by the naked eye. If you ever get your hands on one of these treasures, just take a look and you will see that the date 1955 and the motto LIBERTY and IN GOD WE TRUST appear doubled. The coin’s reverse was made correctly and does not show any doubling.
Before a die was supposed to be used in production, no less than seven employees of the U.S. Mint were expected to review and approve the die. That clearly didn’t happen. And, the imperfect die was placed in the rotation for the midnight to 8 am shift.
Let Them Circulate!
By morning, it was estimated that anywhere from 20,000 to 24,000 of these Double Die Lincoln pennies were struck. The problem? These double die Lincoln pennies were mixed in with millions of other properly produced Lincoln cents produced on the overnight shift.
The Chief Coiner of the Philadelphia Mint, Sydney C. Engel, had to decide between letting the double die pennies go into circulation, or melt down about 10 million pennies. He decided to let the error coins circulate!
In the months that followed, 1955 Double Die Lincoln pennies began to pop up, especially in Boston, western Massachusetts and upstate New York. The majority of the Lincoln Double Die pennies were discovered in cigarette packs as change. Back then, vending machines were not able to dispense change like they can today. The vending machines only accepted quarters.
Since the pack of cigarettes cost 23 cents, two pennies were slipped inside the cellophane packaging of the cigarette pack to serve as the change to the customer.
An Exciting Piece of Numismatic History
Today, the 1955 Double Die Lincoln Cent is one of the most sought after coins in all of numismatics. Even though as many as 24,000 of these dramatic error coins were struck, survival estimates for grade 60 or better total a mere 1,200. You can see it here.
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Peace Dollar Symbolizes America’s Hope for Lasting Peace After WWI
Posted onPresident Woodrow Wilson famously described World War I as the war to end all wars.
After a bloody four-year conflict, from 1914-1918, in which over 8 million soldiers and sailors died, the Allied Forces and the Germans signed an armistice ending World War I on November 11, 1918.
After the war ended, the American numismatic community advocated for an official coin to celebrate the peace. Soon after, a design competition for the new coin was announced. A 34-year old Italian sculptor named Anthony de Francisci won the honor of designing this important coin.
The coin’s design elements were carefully chosen to represent peace, harmony and optimism and are treasured by collectors everywhere today as a tribute to WWI and the restoration of peacetime that followed.
The inspirational Peace dollar features a portrait of Miss Liberty facing left with a serene expression on her face, with flowing hair and a radiating crown. The word LIBERTY encircles her crown, and IN GOD WE TRUST and the date lie below. The image represented Americans desire to look ahead.
The reverse of the silver Peace Dollar features a bald eagle, resting on a rock, clutching an olive branch above the word “PEACE.” Rays of sunlight brighten the background. This was one of two designs considered, with the first being a more aggressive representation of the eagle, holding a broken sword. Ultimately, the sword remained but was place beneath the eagle. However, the response to the broken sword was swift and loud. “A sword is broken when its owner has disgraced himself. It is broken when a battle is lost and breaking is the alternative to surrendering. A sword is broken when the man who wears it can no longer render allegiance to his sovereign. But America has not broken its sword. It has not been cashiered or beaten; it has not lost allegiance to itself. The blade is bright and keen and wholly dependable.”
The silver Peace Dollar minted between 1921 and 1935 represents one of the most celebrated and lasting designs in numismatics. It’s calming beauty and its symbolic message along with its unique status as our country’s last circulating silver dollar make it a highly sought after coin series among collectors.
The Peace dollar was issued under the terms of the Pittman Act. That act required the U.S. Mint to strike millions of silver dollars, which began in 1921 initially using the Morgan dollar design. Treasury Secretary Andrew Mellon approved the Peace dollar in December 1921.
While just over one million 1921 $1 High Relief Peace dollars were minted in Philadelphia, the majority met their fate in the melting pot. The high relief was deemed impractical for coinage and was quickly modified to “low relief” in 1922.
Today, the first-year 1921 is one of the scarcest Peace dollars in both circulated and mint state condition. This coin is considered a very important one-year-only silver type coin.
The Peace Dollar series also boasts some intrigue notably around the 1964-D Peace Dollar. U.S. Mint records show that 316,076 silver Peace dollars were struck at the Denver Mint in May of 1965 (though they were backdated to 1964).
At the time, a massive silver shortage meant these Peace dollars were significantly more valuable for their silver content than their $1 face value. Indeed before these coins were even released to the public, private collectors were advertising offers of $7.50 each to buy the coins!
The government was concerned about the potential for public hoarding and the silver Peace dollar program was cancelled. What about those 1964-D Peace Dollars? They were never released to the public and condemned to the melting pot.
What’s more, today, it is illegal to possess a 1964-dated Peace dollar! So do any still exist today? According the official story, at the time, all but two of the 1964 Peace Dollars were melted down for their silver content. The two survivors were reportedly sent to Washington, D.C., where they remained until 1970 when Mint records say they too were melted in the presence of a destruction committee.
However, within the numismatic community there are stories.
It was said that every Denver Mint employee received two coins each. But even if a 1964 Peace Dollar were found today, it would be illegal to own since the coin was never officially monetized.
Today the Peace Dollar is a tangible piece of American history that represents America’s desire for healing and renewal after the Great War. The Peace Dollar has become a powerful and enduring symbol of America’s post-war spirit and America’s desire for lasting peace. Curious? We have just one example of a certified 1921 MS-64 Peace dollar, see it here.
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Gold Jumps to A Four Week High After December Jobs Report
Posted onU.S. stocks plunged and gold climbed to a four-week high after a blow-out December jobs report on January 10. The Dow sank nearly 700 points as investors fled the equity markets following news that the U.S. economy added 256,000 new jobs in December, far outpacing estimates of around 165,000 jobs.
Investors once again turned to the safety of gold as expectations the Federal Reserve will not reduce interest rates as much as previously expected took the wind out of the stock market’s sails.
Overall, investors dumped stocks amid concerns that the job market would add more inflation to the economy at a time when the Fed has failed to get prices under control. The December jobs report reinforced expectations that the central bank will keep interest rates unchanged when it meets next at the Jan. 28-20 meeting. The markets are pricing in a 94% chance that the Fed holds rates steady when it meets in late January, according to the CME Fedwatch Tool.
The unexpected strength in the jobs report spooked stocks on a couple of fronts and reveals how the equity market is on weak footing. Stock investors are worried both about inflation and that higher interest rates are here to stay for longer, which weighs on stocks.
Stock investors may want to prepare for increased stock volatility in the weeks and months ahead as the Fed has fewer reasons to cut interest rates this year.
Meanwhile, gold is flexing its strength and racing out of the starting gates in 2025 trading near $2,700 an ounce, following the precious metals’ stunning 26% gain last year. Gold settled at their highest level in four weeks in the week ending January 10, despite gains in the U.S. dollar and Treasury yields.
The great gold rally of 2024 is continuing at full speed ahead as worries about the U.S. fiscal situation continue to support inflows into safe-haven, tangible assets like precious metals. With the U.S. debt levels climbing to $36.3 trillion and as a percentage of our gross domestic product is nearly 125%. Worries about the rising debt and the potential for a debt crisis are resulting in higher Treasury yields as bond investors demand higher returns relative to the risk that government bonds represent.
In today’s uncertain world, gold continues to tower among other asset classes in terms of safety and security. Gold ownership provides peace of mind as it allows you to preserve, protect and grow your wealth just it has for the past 5,000 years.
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California Territorial Gold: Prized By Collectors around the World
Posted onIt was January 24, 1848. At Sutter’s Mill in California, James Marshall was doing his daily inspection for the sawmill he was building. He found shining flecks of metal amid loose dirt and gravel after he diverted water to clean up the construction site. Marshall showed it to his crew and everyone was fairly certain it was gold. However, Marshall unaware of the significance of his discovery was focused on completing the sawmill on schedule.
Marshall had no idea what his discovery was about to unleash.
Today, historians consider the California gold rush to be one of the most significant events of the first half of the 19th century. Marshall’s discovery of gold triggered the largest migration in United States history as over 300,000 flocked to the California territory in search of riches and wealth.
These were exciting and rough and tumble times in the California territory. While miners pulled gold nuggets out of rivers and the ground, the raw gold was not effective as a medium of exchange. And, there was no way to turn that into coins in the west at that time. The first California branch of the U.S. Mint didn’t open until 1854.
The fortune hunters who flocked to the California territory desperately needed coins to pay for everyday goods and services. At that time, people used pinches of gold dust to pay for merchandise and services. However, this method lacked uniformity and an extra big pinch from a merchant could be costly.
There were proposals to use paper currency to ease the coin shortage. But, the people who had journeyed to the West had a deep distrust of paper money. They wanted gold coins. Indeed, Article IV section 34 of the 1849 California Constitution outlawed the right for any bank to “make, issue, or put in circulation, any bill, check, ticket, certificate, promissory note, or other paper, or the paper of any bank, to circulate as money.” Simply put, the people wanted hard currency.
So, entrepreneurs of the day seized the opportunity and opened private mints. Private gold was circulated out of necessity in the rural West due to the coin shortages.
The First Private Gold Mint in California
At that time, in New York City, a firm called Norris, Gregg & Norris specialized in manufacturing items like metal pipes, fittings, and boilers that were used in plumbing and steam-heating of buildings. Following the 1848 discovery of gold at Sutter’s Mill, the enterprising partners— Thomas H. Norris, Hiram A. Norris, and Charles Gregg—relocated to California and formed a private mint.
In the spring of 1849 Norris, Gregg & Norris began minting the first private gold ever in the region, including several varieties of $5 gold pieces with both plain and reeded edges.
It made the local news. The Alta California newspaper reported: “We have in our possession a Five Dollar gold coin, struck at Benicia City, although the imprint is San Francisco. In general appearance it resembles the United States coin of the same value.”
Moffat & Co. Was Known for Meticulous Production of Its Gold Coins
In 1850, California became the 31st state to join the Union in September and at that time private minting was legal. Not only was the private issuance of money was common – indeed it was essential.
Moffat & Co. was founded by New York metallurgist John Little Moffat. His firm developed an assay office, which was semi-official in appearance and character, despite having no official connection to the United States government.
Moffat used U.S. American gold coins as a model for some of his coins. He employed Albrecht Kuner, a skilled Bavarian to create the dies for the five and ten dollar pieces. The dies were every bit as elaborate as official government coins. On the coronet of Liberty, the words Moffat & Co. replace the word LIBERTY, which was seen on official United States government coins.
Many of Moffat’s coins, including the 1850 $5 Gold Moffat coin are enduring pieces of numismatic history. Moffat & Co. was the considered most reputable and influential private gold minter of the California Gold Rush period.
Moffat $5 coins were heavily used in the gold camps. Later, many were melted down for the gold content. Today an 1850 $5 Gold Moffat in mint condition is considered very rare and a highly coveted prize for collectors.
Once the federal government decided to open a mint in California it leaned heavily on Moffat for guidance, support and advice. In fact, the successors of the firm eventually sold their minting facility to the U.S. Treasury department.
Eight-Sided Humbert Gold Piece Represents the Best of Gold Rush History
The significance of the 1851 Humbert $50 coin can hardly be exaggerated. This iconic eight-sided gold piece represents the best of the legendary California Gold Rush period.
The hugely popular $50 “slug” was designed by Augustus Humbert, a New York watchmaker. Humbert developed the obverse and reverse dies for his proposed $50 ingots and transported them across the country to California along with other necessary equipment. In 1851, he joined up with Moffat & Co. to produce these remarkable coins under government contract as the United States Assay Office of Gold.
The survival rate of the Humbert fifties is low, especially in a high grade. Once the U.S. Mint finally opened in California, many of these gold pieces ended up in the melting pots due to their high intrinsic value.
The Humbert $50 ingot’s memorable octagonal design features an eagle with a U.S. shield and three arrows in the right talon on the reverse. A scroll inscribed LIBERTY sits in the beak and UNITED STATES OF AMERICA and FIFTY DOLLS surrounds the eagle. Around the edge it reads AUGUSTUS HUMBERT UNITED STATES ASSAYER OF GOLD CALIFORNIA 1851. A unique “Target” pattern fills the reverse.
Wass and Molitor Gold Pieces
Samuel C. Wass and Agoston P. Molitor, Hungarian immigrants who had studied metallurgy in Germany, saw the private minting opportunity and they jumped on it. The team opened an assay office on Montgomery Street in San Francisco in October, 1851. It didn’t take long before the hardworking pair developed an extensive smelting operation and assay laboratory that was publicly lauded in the local newspapers for its modernity.
In 1852, Wass, Molitor & Co opened for business and began minting ore into small denominations like $5 and $10 gold pieces. The public quickly embraced Wass and Molitor’s coinage. Their coins were considered good quality and miners who brought in nuggets and gold dust received fast service – their ore was turned into coins within 48 hours! Eventually, their gold pieces demanded a premium in circulation and were eagerly accepted in trade.
By 1855 Wass and Molitor began coining $20 and $50 gold pieces. The 1855 $50 Wass and Molitor gold piece is the largest coin their firm it had ever made – indeed a weighty, round $50 gold coin. The round $50 gold pieces remained popular and widely circulated until the San Francisco Mint began striking federal coins in a consistent fashion. By the end of 1855, the private coin firms were no longer needed and Wass, Molitor & Co. shut down.
Due to their hefty gold content, many of Wass Molitor coins were melted by the San Francisco branch mint to turn into federal coinage, which makes survivors especially in high grades extremely rare.
The End of an Era
The San Francisco Mint began operations in 1854. This stopped private gold coinage and marked the end of an extraordinary era for California territorial gold. The surviving private gold coins are bursting with history of a dramatic and exciting era in Western gold rush history.
Today, these highly sought after large Territorial coins are hard to come by and it can be decades before high quality specimens surface. Once these legendary and iconic coins change hands, collectors tend to hold onto them for years or even a lifetime. Wouldn’t you?
How You Can Protect Yourself Before The Next Stock Bubble Bursts
Posted onThroughout history, bubbles have formed in stocks, real estate and even tulip markets. Indeed, financial history keeps repeating itself. Bubbles form, grow and then burst with disastrous consequences over and over again.
Investors who are participating in the market run-up typically believe that if anything goes wrong, they can be safely one of the first people out the door. But, since bubbles are fueled by psychology—the fear of missing out—and also greed, getting out at the right time is a challenging maneuver that few succeed at.
There’s an old saying in the stock market, bull markets climbing higher take the stairs, but bear markets that are tanking take the elevator down. When stocks plunge, panic selling drives prices down fast. That makes it hard to get out.
The outcome of a bubble is always the same. Bubbles end badly, with financial losses far exceeding what investors thought could be possible.
Why are some experts sounding the alarm bell right now on stocks? Simply put, market valuations are historically overpriced and overstretched.
At the recent S&P 500 peak, Nobel prize winning economist Robert Shiller’s price/earnings ratio (CAPE) was the second highest ever—going all the way back to 1870.
These are the type of signals that occurred before major stock market plunges, which saw the market dive 50% or more in 1973-1974, 2000-2002 and 2007-2009.
If you have a $1 million stock portfolio—how would you feel if that were cut in half to $500,000 by December 2025?
There is a way that you can decrease your risk before the next bubble bursts.
Increase your allocation to gold right now.
Book some of those profits in your stock market portfolio and use those proceeds to purchase a tangible asset like gold or silver.
Precious metals act as an insurance policy, a hedge against equity market declines and as a vehicle to protect and grow wealth. This paid off for gold investors after the 2008 global financial crisis when gold went from $700 to $1,900 an ounce.
Gold and silver have stood the test of time, providing people for thousands of years with a store of value that not only protects and preserves wealth, but helps to grow it. The great gold rally is far from over. Gold broke records last year and is expected to set new records in 2025.
How much is gold enough? That is a personal question based on your risk tolerance level and there are a range of answers:
- Billionaire investor Ray Dalio recommends investors to own up to 15% of their wealth in gold saying: “if you don’t own gold, you know neither history or economics.”
- Research from the well-respected CPM Group stated that over the past 50 years, the best return of a portfolio including stocks, bonds, and gold was for portfolios that had around 25% – 30% of their value in gold.
As the calendar flips to 2025, the stock market rally is frothy and living on fumes. If you take action now, you can protect your wealth before the next stock market bubble bursts. Now’s the time to buy if you’ve been waiting to increase your allocation to gold, with $3,000 an ounce as the next big target on the upside.
Gold’s role as currency and as an asset to protect, preserve and grow your wealth has lasted for centuries and shows no signs of losing its appeal. If you have been thinking about increasing your allocation to gold, there’s never been a better time. It’s easy to increase your wealth protection, why not do it today? When the stock market begins to tank, you’ll be glad you did.
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2024: An Extraordinary Year for Precious Metals
Posted onGold and silver delivered extraordinary performances in 2024. It was a record-breaking year as gold climbed to multiple new all-time highs throughout the
year. Gold’s remarkable ascent to a new record above $2,700 an ounce was driven by multiple factors including central bank buying, geopolitical tensions, monetary policy easing, persistent inflation, and increased safe-haven demand from investors.
Precious metals outpaced returns in most other asset classes. Gold climbed as much as 33% annually through the fourth quarter, while silver gained 29%.
Key Bullion Trends in 2024
Several factors contributed to gold’s stellar performance in 2024 including aggressive central bank buying, geopolitical tensions around the globe, stubborn inflation and monetary easing.
- De-Dollarization: The geopolitical landscape, particularly actions such as the freezing of Russia’s dollar assets by the Biden administration, prompted countries to reconsider the amount of their reserves held in dollars. This contributed to the increased demand for gold as a secure, long-term reserve internationally.
- Long-term Position Building: Central banks are buying and stockpiling gold, and these are long term positions. This trend emerged amid a fundamental shift in how central banks manage the composition of their reserves. Notably, they are decreasing their U.S. dollar reserves and increasing their gold reserves. Central banks like Russia, along with emerging markets like China, India, and Turkey, have been significant buyers of gold recently. This increase in central bank gold holdings has created a strong stable base for gold prices at these higher prices levels. Central banks are the ultimate buy and hold investors, and tend to hold their assets for decades.
- Geopolitical Tensions: Ongoing conflicts in Ukraine and the Middle East, coupled with broader global uncertainties, heightened gold’s appeal as a safe-haven asset.
- Monetary Policy Shifts: Federal Reserve and other central bank’s interest rate cuts in 2024 boosted gold’s attractiveness. As interest rates decrease, non-yielding assets like gold become more appealing to investors.
- Inflation Concerns: Persistent inflationary pressures in many economies, including the United States, increased investor interest in gold as a method to protect and preserve the purchasing power of their wealth.
- Strong Investor Demand: The record-breaking performance of gold in 2024 attracted more investors into bullion, creating a self-reinforcing cycle of demand. As prices climbed, more investors entered the market, further driving up prices.
Investor Behavior: Fractional Gold Emerged As a Popular Bullion Strategy in 2024
Over the past year, new and seasoned investors actively accumulated fractional gold in a long-term wealth building strategy. There has been significant focus on fractional gold, which is seen as a practical, affordable, and the perfect emergency-use currency.
These smaller denominations of gold, typically weighing less than one ounce, provide a more accessible entry point into the precious metals market. One of the benefits of fractional gold is its affordability. With options like 1/10 oz, 1/4 oz, and 1/2 oz coins investors can build their bullion portfolios on an on-going basis, over time, using a strategy known as dollar-cost averaging.
Another benefit to fractional gold is increased liquidity—as smaller denominations are seen as easier to sell or trade compared to larger coins or bars. This liquidity is a valuable hedge against periods of economic uncertainty or panic—especially as a number of American states advance legislation to recognize gold and silver as legal tender. Already, 12 states have laws on the books that make gold and silver legal tender. Additionally, other states are exploring similar initiatives.
The push for legalizing gold and silver as currency is driven by several factors. Advocates argue that precious metals offer stability in value compared to fiat currencies, which are subject to inflation and economic fluctuations. The growing interest among states suggests that this trend could expand in the coming years as more lawmakers consider alternatives to traditional fiat systems amid economic uncertainties.
Investor Confidence and Wealth Building
Successful wealth building includes taking a long-term view to your investments. As Wall Street legend Ben Graham advised: “The individual investor should act consistently as an investor and not as a speculator.”
Investors are increasingly confident in the stability, peace of mind and wealth preservation opportunities that precious metals offer. Investors view these investments as part of a steady, long-term wealth-building strategy, adding to their portfolios whenever possible. Steady accumulation of bullion has proven to be the most successful approach to building wealth over the long term.
Precious metals have stood the test of time, providing people for thousands of years a store of value that not only protects and preserves wealth, but helps to grow it. The great gold rally is far from over. Gold broke records this year and is expected to set new records in 2025.
If you desire to build wealth for yourself and future generations, Blanchard can help you achieve your goals. Over the past 50 years, we have helped clients invest in American numismatic rarities and investment grade silver, gold, platinum and palladium bullion to protect and grow their wealth. We can help you too.
2024: An Extraordinary Year for U.S. Rare Coins
Posted onThe U.S. rare coin market is closing out a memorable year that will go down in the record books. In 2024, the numismatic market surpassed $6 billion in annual total volume. On a global scale, the coin collecting market was valued at $18.1 billion and is projected to climb to $43.9 billion by 2034, with an 8.5% annual growth rate.
In 2024, the American numismatic market registered a significant pick-up, as overall demand for rare coins rose steadily.
Looking ahead, the rare coin market is poised for continued growth, with supply and demand fundamentals signaling an upward trend in value. As the market expands towards $40+ billion annually in the next ten years, rare coins already in the marketplace are expected to increase in value, driven by the limited supply inherent in the numismatic market. Collecting rare coins has been, and remains, a timeless passion and a prudent investment strategy.
Key Numismatic Trends in 2024
Several notable themes emerged in the numismatic market over the past year.
Tangible Assets Go Mainstream: An influx of new U.S. investors flocked to the numismatic and bullion markets in 2024. Young professionals, in particular, entered the precious metals and numismatic markets, many participating for the first-time. Many of these new investors heard about precious metals and rare coins through conversations with their business associates and friends, as more Americans became comfortable discussing the importance of owning tangible assets.
Increased Inventory Post Covid: A pick-up in transaction activity in the numismatic market occurred in 2024. More rare coins surfaced over the past year after limited inventory during the pandemic and post-pandemic years. In 2024, high-end rarities that emerged from collections for sale, after sitting decades with one owner, were quickly snapped up. As always, when true rarities become available for sale they are placed swiftly and then not seen again for many, many years.
Investors Seeking Diversification and Safety: Investor sentiment focused on economic and political uncertainties, particularly related to the election and long-term financial stability. The recognition that there is no quick fix for the prolonged dollar debasement created the need for sound investment strategies in rare coins and gold.
Generational Wealth Building: A major theme driving investors into coins and precious metals is a desire for a long-term, generational wealth building strategy.
Our Favorite Numismatic Placements in 2024
In the midst of an active year, Blanchard helped thousands of clients put in place investment strategies to preserve, protect and grow their wealth. Here are just a few of our top placements in 2024, including many ultra-rare, capstone coins that rarely surface for sale in the numismatic community.
1.1907 $10 Indian Rolled Edge MS65: This coin represents President Theodore Roosevelt’s initiative to beautify American currency, designed by Augustus Saint-Gaudens. It’s historically significant as the first year of issue for this design and valuable due to its rarity and high grade.
2. 1830 $5 Capped Bust MS65: Produced during a period of technological advancement at the U.S. Mint, its rarity and high grade contribute significantly to its value.
3. 1879 $4 Flowing Hair Stella PR66: This dazzling pattern coin was produced as a potential international trade coin. However, the illustrious $4 gold Stella was never authorized for official use in circulation. Its unique $4 denomination and limited mintage make it highly valuable and iconic for collectors.
4. 1863 $10 Liberty Ultra Cameo No Motto PR65: Minted during the Civil War, this coin is an extreme rarity, as only nine or ten are known to exist. Its historical context and high-quality Ultra Cameo finish contribute to its desirability.
5. 1797 $5 Draped Bust 15 Stars AU58: This ultra-rarity is one of the first gold coins ever struck at the Philadelphia Mint for the United States. Today, only a handful of these pieces of American history are known to exist.
6. 1863 $10 Liberty Deep Cameo PR64: This coin is one of the most elusive American rarities in all grades. Civil War era gold proof coins represent a trophy that only a fortunate few are able to claim ownership of. Owning such a coin is indeed a triumph for a collector that now owns a piece of important American history.
7. 1808 $2.50 Capped Bust AU58: This Quarter Eagle is a stunningly beautiful example of early American coinage and is considered one of the most important pieces of early American numismatic history.
8. $5 Bechtler 128 Grain AU58: This legendary, privately minted coin carries with it a rich history of the North Carolina gold rush in the 1820’s, featuring inherent rarity and precious metal value.
9. 1805 $5 Draped Bust MS65: The memorable design, created by Robert Scot, highlights the essence of our young nation’s aspirations and ideals. Its rarity, historical significance and elegant design make it a prized addition to any collection.
10. 1796 $10 Draped Bust AU58: This gold piece is highly prized, due in large part to its original mintage of just over 4,100 pieces. Today, survival estimates for all grades total a mere 150.
Investor Confidence and Wealth Building
Investors are increasingly confident in the stability, peace of mind and wealth preservation opportunities that precious metals and rare coins offer. Investors view these investments as part of a steady, long-term wealth-building strategy, adding to their portfolios whenever possible. Steady accumulation of rare coins and bullion has proven to be the most successful approach to building wealth over the long term.
The rare coin and the bullion markets continues to thrive, driven by increasing demand, limited supply, and a shift in global financial strategies. Investors and collectors alike can find confidence in the historical and financial value that rare coins and gold bring to their portfolios.
If you desire to build wealth for yourself and future generations, Blanchard can help you achieve your goals. Over the past 40 years, we have helped clients invest in American numismatic rarities and investment grade silver, gold, platinum and palladium bullion to protect and grow their wealth. We can help you too.
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