October 21, 2009 - Gold bullion prices and US stock indexes rose this morning, after a handful of our nation's large banks released better-than-expected third quarter earnings reports. Morgan Stanley, US Bancorp, and Wells Fargo outperformed their second quarter performances in total transaction volume, but these same banks did suffer from higher loan losses as well. Representatives for other banks like JP Morgan-Chase and Goldman-Sachs have stated that loan losses will likely continue to rise for an extended time. Even though there has been much discussion of economic recovery, the lack of concrete, clay, or even sand evidence has frustrated many US investors. Cost-cutting is behind many of the quarterly profits that have recently been posted by corporations, and the next few months will reveal whether companies can sustain their frugal profits. Some sectors of our economy have hinted at signs of life, but the volatility in the bulk of our markets has perplexed many investors. Many investors have diversified with gold bullion recently, because they view the physical metal as a back-up plan for their other investments that could potentially underperform-or worse.
Gold bullion mined in the United States is minted into Gold Eagle coins, or formed into bars by reputable companies like Johnson-Matthey and Engelhard. The US Mint has announced that it will not produce the one ounce Gold Eagle coin this season, but 1/2oz, 1/4oz, and 1/10oz varieties are tentatively scheduled for release on December 3, 2009. Investors often use the gold bullion coins for a short-term hold, since they are eligible for government confiscation. The Silver Eagle gold bullion coin has been discontinued as well, and the US Mint will no longer produce Proof versions of the American Eagle in gold or silver. Household investors who would like to buy gold bullion should contact a reputable gold exchange that is licensed to sell modern-day and pre-1933 US coinage.
