How to Not Own Precious Metals but Profit from Them

By Moe Zulfiqar for Daily Gains Letter | Feb 25, 2013

After the financial crisis, precious metals have gained a lot of attention. Investors are running to precious metals because governments are spending extensively and central banks around the world just keep on printing more and more money.

Take a look at the demand:

Demand for Silver Coins

To say the least, there seems to be a “silver rush” currently happening around the world. In January, the U.S. Mint halted sales of silver coins. It sent a letter to coin dealers stating that the U.S. Mint was sold out of its stock of silver Eagle coins (Source: Schortgen, K., “U.S. Mint halts sales of silver eagles as agency runs out of the precious metal,” Examiner, January 17, 2013, last accessed February 22, 2013.)

Later in the month, the U.S. Mint reported that silver American Eagle coin sales rose to an all-time monthly high in January, with 7.1 million ounces of silver sold, compared to 6.1 million ounces sold in January of 2012. (Source: Tang, F., “U.S. silver coin sales set record in January after halt,” Mineweb, January 30.)

Similarly, the demand for silver in other regions in the global economy is also unprecedented. Take the Royal Canadian Mint (RCM), for example. It announced that it’s rationing the supplies of Silver Maple Leaf (SML) coins due to high demand. In fiscal year 2012, the RCM sold 3.9 million SML in the first quarter, four million in the second quarter, and 4.8 million in the third quarter. (Source: Unser, D.L., “Canadian Mint Limits Sales of 2013 Silver Maple Leaf Bullion Coins,” CoinNews, January 25, 2013.)

Demand for Gold Coins

As investors ran toward … Read More