Precious Metals News & Analysis - Gold News, Silver News from Money Metals Exchange

You Ask Mike; Mike Answers!

Wed, 20 May 2026 00:00:00 EST

This week, Mike lets listeners run the show!

It's an "Ask Mike Anything" episode where our intrepid host tackles questions asked by listeners.

Here are the questions covered in this episode.

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At what point do we start trading in metals instead of paper currency? What does that timeline look like, and where are we currently on that timeline?
How will the higher price of oil impact overall consumer price inflation? Higher oil prices cause higher prices in certain goods, but will it also lessen demand and prices in other areas?
I heard an ad for a gold seller that said, "Some experts claim that gold could hit 6 thousand this year." I'm typically dubious of ads that say "some experts", rather than citing specific experts.
1 - Do you know of any reputable experts making this claim?
2 - Do you agree?
3 - Do you think the January peak is likely the highest we'll see this year? Why or why not?
As SHTF scenarios become more likely, metals will be a life-saving alternative to fiat. Dealers put a high premium on rare collectible coins, whereas I only value the metal content of coins. Will these collectibles retain extra value when Mad Max hits town?
Does AI feel like a bubble to you based on the huge valuations of these companies?
Should people consider trading the gold/silver ratio? If so, when? And if the refiners get backed up, will it be even possible?
Silver has been significantly outpacing gold. Do you see this continuing, and should we expect a rate cut with the new Fed Chair, even if inflation rises?
Texas established a precious metals depository with the ability to conduct transactions within the depository. Can you give us an update on how that’s progressing and if any other states have done something similar?
What is a realistic way of making it normal to trade and pay for items in precious metals? Are there good precious metal-backed currencies that you like?
Maybe talk a little bit about the lead time between cause and effect.
Related to the old saying health is wealth, you managed to play goalie and do it well long after younger (and lesser) men have hung up their skates. How do you manage to do this? To be clear, no joking, I'd very much like to hear the answer.
Articles Mentioned During the Show

https://www.moneymetals.com/news/2026/05/12/no-matter-how-you-slice-the-data-it-come-up-inflation-004912";>No Matter How You Slice the Data, It Keeps Coming Up Inflation

https://www.moneymetals.com/news/2026/04/16/how-a-silver-shortage-sparked-a-historic-price-rally-004839";>How a Silver Shortage Sparked a Historic Price Rally

When Did Pennies Stop Being Copper? - 1982 Penny Composition Change Explained - Copper vs Zinc Pennies - Money Metals

Mon, 18 May 2026 00:00:00 EST

When did pennies stop being copper? The quick answer is 1982. Prior to that time, most pennies had a predominantly copper composition. However, the 1982 mint year brought an incredible change. That year, the U.S. Mint changed the penny to a primarily zinc composition.

That shift wasn't just a manufacturing tweak. It marked the moment U.S. coinage quietly moved away from real metal value.

Understanding exactly what changed, and why, can help you spot valuable coins hiding in plain sight. You can find those answers in this guide below.

Quick Answer

When Did Pennies Stop Being Made of Copper?

Pennies stopped being copper in 1982, when the U.S. Mint switched to a zinc core with copper plating due to rising copper costs.

When Did Pennies Stop Being Copper?

Pennies effectively stopped being copper in 1982, when the U.S. Mint changed the coin's composition from 95% copper to a zinc core with a thin copper coating. However, 1982 is not a clean cutoff year. During that transition, the Mint produced both copper and zinc pennies, making it one of the most unusual years in modern U.S. coinage.

Before 1982, Lincoln cents were made primarily of copper. They also included a tiny portion of tin and zinc, an alloy made to give the penny heightened durability. Midway through 1982, rising copper prices required the government to change how it made the coin.

As a result, the penny received a drastic alteration: it now contained 97.5% zinc and just 2.5% copper plating.

For collectors and investors, that distinction mattered. Any penny dated 1981 or before is copper, while most pennies from 1983 onward are zinc. 1982 coins sit in the middle, with both models in circulation.

The 1982 Transition Explained

The shift away from copper pennies did not happen instantly. Instead, 1982 became a split year, with the U.S. Mint producing multiple variations of the Lincoln cent using two different metal compositions.

At the start of 1982, pennies were still struck in the https://www.moneymetals.com/pre-1983-95-percent-copper-pennies/4";>classic 95% copper alloy, the same basic composition used for decades. However, the American economy changed in the late 1970s. The intrinsic metal value of a one cent coin approached its face value. Sometimes, it even exceeded that face value.

That change would be a problem for any government mint. When coin production leads to losses, the process simply cannot be sustainable.

That led to the introduction of new currency. Beginning in mid-1982, pennies were struck with a 97.5% zinc core and a thin 2.5% copper plating, dramatically reducing production costs while maintaining the coin's familiar appearance.

What makes 1982 especially important is that the transition did not happen all at once across all facilities. Instead, the Mint produced seven different varieties of 1982 pennies, including:

Copper and zinc versions
Large date and small date designs
Coins from multiple mint locations

This created a situation where two pennies from the same mint year can have completely different metal content. As a result, they can also have completely different collector value.

For practical purposes, the easiest way to tell them apart is by weight. Copper pennies weigh about 3.11 grams, while zinc pennies weigh around 2.5 grams. That small difference is often the quickest way to determine what you're holding.

For collectors, the 1982 transition is more than a footnote. It marks the exact moment when the U.S. penny quietly shifted from a coin with real metal value to one largely dependent on fiat economics.

Why the U.S. Mint Changed Penny Composition

The U.S. Mint did not abandon copper pennies by choice: basic economics forced its hand. By the early 1980s, the rising price of copper had turned the humble penny into a money-losing proposition for the government.

As inflation surged in the late 1970s, commodity prices followed. Copper, in particular, became much more expensive. At certain points, the metal value of a penny nearly equaled or exceeded one cent. That created a significant problem. If it costs more than a penny to make a penny, taxpayers are effectively subsidizing every coin produced.

There was an additional concern. When the melt value of a coin approaches its face value, it creates an incentive for hoarding. It may even tempt people to illegally melt the coins down for their valuable metal content. People begin pulling their coins out of circulation in the hopes of profiting from the raw metal content.

That disrupts the monetary system and forces the Mint to produce even more coins to meet demand. Switching to zinc solved both problems.

Zinc is far cheaper and more abundant than copper, allowing the Mint to reduce production costs while maintaining the penny's appearance with a thin copper plating. You can see the changes represented in the table below:

Year	Composition	Weight
Pre-1982	95% Copper	3.11g
1982	Copper & Zinc (transition)	3.11g / 2.5g
Post-1982	97.5% Zinc, 2.5% Copper	2.5g

The end result was a coin that looked the same in circulation; the difference was that one was a much cheaper replacement.

In short, the change was not about convenience. It was about the survival of the cent coin. The copper penny had become too valuable as metal to remain practical as money.

Copper vs Zinc Pennies: How to Tell the Difference

At a glance, copper and zinc pennies look nearly identical. However, there are a few simple tests you can use to tell what your cent is made of.

The most reliable method is weight. Prior to 1982, copper pennies weighed about 3.11 grams. Later zinc pennies weigh around 2.5 grams. That difference may seem small, but it's significant enough that even a basic digital scale can tell them apart instantly. For anyone sorting large quantities, this is the fastest and most accurate approach.

Another easy clue is the date. Pennies dated 1981 and earlier are copper, while those from 1983 onward are zinc. The only year that requires closer inspection is 1982, since both compositions were produced during that transition.

You can also look for visual wear. Zinc pennies tend to develop dull spots, corrosion, or even bubbling under the thin copper plating over time. In contrast, solid copper pennies usually wear more evenly and maintain a smoother, more consistent appearance as they age.

Some collectors use a simple “sound test.” Drop the coin gently on a hard surface. Copper pennies produce a clearer, higher-pitched ring. In contrast, zinc coins sound flatter and duller. It's not foolproof, but it can help when sorting quickly.

For investors and collectors, knowing the difference matters. Copper pennies carry intrinsic metal value, while zinc pennies are essentially fiat tokens with minimal material worth.

Are Copper Pennies Worth More?

Yes, copper pennies are worth more than face value, but not always in the way people expect.

Each pre-1982 penny contains about 0.95 grams of copper. That gives it an intrinsic metal value that often exceeds one cent, depending on the https://www.moneymetals.com/copper-prices";>current copper price.

In bulk, this adds up.

That's why some investors quietly accumulate copper pennies as a form of “poor man's bullion,” betting on long-term inflation and commodity prices.

There is a critical caveat though. It is currently illegal in the United States to melt coins for their metal content. That law limits the immediate profit potential of copper pennies. Their value is largely theoretical unless laws change or copper prices rise sufficiently to create a secondary market.

From a collector's point of view, most common-date copper pennies are not rare. The U.S. Mint produced millions, and potentially billions, of these coins. That means typical circulated coins are usually worth only a few cents each when sold in bulk. The real premiums come from:

Uncirculated condition coins
Key dates or low mintage years
Error coins (including certain 1982 varieties)

Even so, copper pennies still hold a distinct advantage over their zinc counterparts. Zinc pennies have practically no intrinsic value. They are also more prone to damage over time.

In contrast, copper coins are more durable. They also have a historical connection tied to real metal value.

For many, the appeal is simple. Copper pennies represent a time when U.S. coinage still had tangible substance. That fact alone makes them worth holding onto.

Should You Save Pre-1982 Pennies?

For many investors and coin enthusiasts, the answer is yes: pre-1982 pennies are worth saving, even if the upside is not immediate.

These coins contain 95% copper, giving them intrinsic value that often exceeds their one-cent face value. While you cannot legally melt these coins, that restriction might change in the future. In fact, it has changed for other coins in the past. If it does, the metal value alone could make large quantities of copper pennies far more valuable.

There is also a practical angle. Copper pennies are more durable than modern zinc cents, which tend to corrode, pit, or degrade over time. That makes older coins more attractive for long-term storage.

That said, this is not a get-rich-quick strategy. Sorting and storing copper pennies takes time, and the gains are typically measured in small increments unless you are dealing in bulk. Still, for those concerned about inflation or the declining purchasing power of fiat currency, stacking copper pennies is a simple, low-risk way to hold a tangible asset.

In short, you are not saving pennies: you are preserving metal value that the modern coin no longer offers.

Frequently Asked Questions

No modern U.S. pennies are 100% copper. However, pennies dated 1909-1981 are made of 95% copper, with small amounts of tin and zinc. These are commonly referred to as “copper pennies” by collectors. Please note there is an exception for 1943, when the U.S. Mint produced the steel penny to conserve copper for war supplies.

Some are. Because 1982 was a transition year, certain models, especially small date copper pennies, can carry premiums. Most 1982 coins are still worth only face value or slightly more, but specific combinations of date style and metal content are worth checking.

The easiest method is to check the date. Pennies from 1981 and earlier are copper, while those from 1983 and later are zinc. For 1982 coins, you’ll need a scale or closer inspection, since both types exist.

Many investors think so. While you can’t legally melt them today, copper pennies have higher intrinsic value and may benefit from future changes in metal prices or regulations. Some people save them as a hedge against inflation.

The End of Penny Production

In 2025, the U.S. Mint ended production of the circulating one-cent coin, marking another milestone in the long decline of the penny. The move came down to cost.

https://www.usmint.gov/news/press-releases/united-states-mint-hosts-historic-ceremonial-strike-for-final-production-of-the-circulating-one-cent-coin";>The Treasury said the penny's production cost had climbed to 3.69 cents per coin, far above its face value, making continued mass production increasingly difficult to justify. Even so, pennies remain legal tender, and existing coins are still in circulation.

For collectors, that gives pre-1982 copper cents even more symbolic weight. They already represented the end of one monetary era in 1982. Now they also stand as relics of a denomination the government no longer mints for circulation.

Structural Supply Deficits Forecast to Continue Driving Platinum Group Metal Prices Higher

Mon, 18 May 2026 00:00:00 EST

Platinum group metal prices rose substantially last year, driven by persistent supply deficits and favorable market dynamics, and Metals Focus expects the bull market to continue this year, with significant price upside remaining.

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Platinum joined gold and silver for the wild ride up in 2025, gaining 119 percent, and then continuing to surge through the first three weeks of 2026. Platinum hit an https://www.moneymetals.com/platinum-price";>all-time high of $2,923 an ounce in late January before https://www.moneymetals.com/news/2026/01/31/some-thoughts-on-the-gold-and-silver-sell-off-004652";>selling off along with gold and silver.

Palladium took a similar trajectory, rising 78.7 percent in 2025 from $914.10 before peaking https://www.moneymetals.com/palladium-price";>just below $1,100 in January.

According to Metals Focus, several factors drove PGM prices higher, including tightening physical balances, increasing investor interest, and concerns about the possible impact of trade and strategic access policies on trade flows.

Persistent market deficits have https://www.moneymetals.com/news/2026/01/13/platinum-and-palladium-are-back-why-the-2025-to-2026-supply-squeeze-has-investors-watching-004608";>squeezed both the platinum and palladium markets. In 2025, platinum demand outstripped supply by 951,000 ounces. It was the fourth straight market deficit, with the supply shortfall widening significantly from 559,000 ounces in 2024.

The palladium market deficit nearly doubled from 218,000 ounces in 2024 to 416,000 ounces last year.

https://www.moneymetals.com/uploads/content/pgm-market-deficit-2026.png"; width="600" height="433" class="mx-auto p-3" alt="" />

This is similar to what happened in the silver market, where https://www.moneymetals.com/news/2026/04/16/how-a-silver-shortage-sparked-a-historic-price-rally-004839";>persistent deficits finally reached a critical mass and drove two squeezes that sent prices sharply higher. When production dips below demand, users must source metal from existing above-ground stocks. This generally requires higher prices to incentivize sellers.

Declining mine output is https://www.moneymetals.com/news/2026/02/24/recent-platinum-price-correction-better-aligns-market-with-fundamentals-004715";>squeezing the platinum supply.

Total platinum mine supply fell by 4 percent to 5.6 million ounces last year. Palladium mine output mirrored the percentage decline, contracting to 6.3 million ounces.

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Secondary supply provided a partial offset, with total PGM scrap rising.

According to Metals Focus, several factors impacted PGM mine output, including a disruption in South African production due to flooding at several operations and a sharp decline in North American supply following the placement of Stillwater West on care and maintenance.

On the demand side, automotive offtake for PGMs (platinum, palladium, and https://www.moneymetals.com/rhodium-price";>rhodium) fell modestly by 2 percent to 11.9 million ounces in 2025. Notably, it was the first time auto demand dipped below 12 million ounces since a chip shortage impacted the industry in 2022.

According to Metals Focus, light-duty vehicle production grew 3 percent last year, but gains were skewed towards battery electric vehicles (BEV), which achieved a 16 percent market share.

“The pace of electrification will remain the central question for these three key PGMs. In 2025, ICE and hybrid production still accounted for the vast majority of light vehicles, but BEVs penetration is increasing steadily.”

Increasing demand in other sectors, particularly investment offtake, took up the slack.

“What has changed markedly is the investor story. Platinum’s re-rating last year was driven as much by strategic accumulation and correlation with gold as by physical fundamentals and tighter available stock levels, and that dynamic alongside the risk of protracted U.S.-Iran conflict will likely continue to shape pricing in 2026.”

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Retail investment demand surged by 96 percent to 404,000 ounces. Record Chinese buying accounted for roughly 60 percent of global purchases.

PGM offtake for other industrial applications also rose last year.

Electronics demand rose by 8 percent to 1.3 million ounces across all PGMs, thanks to the AI boom.

Chemical demand grew 3 percent to 1.9 million ounces. Palladium is an important input in plastic precursor production.

Meanwhile, platinum jewelry demand rose 10 percent to a 9-year high of 2.2 million ounces. Surging platinum jewelry sales continued the upward trend that began in 2024, with manufacturers pivoting to platinum as gold prices surged.

Metals Focus expects the PGM market deficits to continue in 2026. However, “price outcomes will increasingly be shaped by investor flows, stock movements and policy intervention rather than supply-demand balances alone.”

“Platinum is forecast to remain in a fourth consecutive deficit of 312,000 ounces, with above-ground stocks declining to 9.0 million ounces. Following a sharp re-rating in 2025, driven by the launch of platinum futures on China’s Guangzhou Futures Exchange (GFEX) and other investment inflows, the metal is expected to consolidate at elevated levels, averaging $2,190 in 2026 (+71% y/y). Palladium, while still in deficit for a fifth consecutive year at 376,000 ounces, faces limited investor appetite, keeping it at a discount to platinum, with a forecast average of $1,570 (+37% y/y).”

Based on its market analysis, Metals Focus expects the price of all the PGMs to rise further in 2026.

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Ghana Central Bank Seeks to Increase Domestic Gold Buying to Boost Reserves

Mon, 18 May 2026 00:00:00 EST

Earlier this year, the Ghanaian government announced https://www.moneymetals.com/news/2026/02/26/ghana-announces-plan-to-buy-artisanal-gold-to-stem-smuggling-004721?srsltid=AfmBOorQQzSgzRxDvWRlJuDstOGemMxUHJq7q2T3Qkio8Dwd87456UEX";>a scheme to buy 127 tonnes of gold from “artisanal” and small-scale mining (ASM) operations to boost reserves and stem smuggling. Now the government is asking large-scale miners in the country to sell 30 percent of their annual output to the Bank of Ghana to boost gold reserves. That’s up from the 20 percent required by an agreement hammered out between miners and the Ghana Chamber of Mines in 2022.

Bank of Ghana gold management program head Paul Bleboo announced the new plan last week.

“This time, we intend to negotiate for 30 percent of annual production [from industrial miners] … with the entire 30 percent to be delivered in doré form.”

Doré is semi-refined ore containing 80 to 90 percent gold.

According to Bleboo, miners fell short of the 20 percent commitment by about half last year, as industrial miners delivered roughly 10 tonnes against declared production of about 100 tonnes.

Miners are required to sell to the central bank at a “less than 1 percent” discount. Bleboo said the discount was “necessary,” reflecting refining, freight, and purity costs. He said it should be “treated as the cost of building reserves.”

However, Ghana Chamber of Mines CEO Kenneth Ashigbey said negotiations regarding pricing and discounts are “not straightforward,” adding that they have not reached any agreement with the central bank

Ghana ranks as Africa's top gold producer and the world's sixth largest. In 2024, the country produced around 4.9 million ounces of the yellow metal, and early data indicate production set a record of over 6 million ounces last year.

Based on the most recent data available from the Ghanaian central bank, the country’s gold reserves had climbed to 19.2 tonnes as of February. According to a CNBC report, the expanding gold reserves have helped “stabilize the Ghanaian cedi and rebuild external buffers as the economy recovers from its worst crisis in a generation.”

Ghana has targeted reserves of up to 157 tons, the equivalent of 15 months of import cover, by 2028.

Ghana’s efforts to expand its gold holdings are part of a broader global trend toward https://www.moneymetals.com/news/2026/05/05/central-banks-added-more-gold-in-march-but-big-sales-sent-net-purchases-negative-004891";>larger gold reserves, and many countries seek to https://www.moneymetals.com/news/2026/05/12/de-dollarization-has-the-end-of-history-ended-004911";>diversify away from the dollar.

While central bank gold buying moderated in 2025, it remained far above the recent historical average. Official net full-year buying came in at 863.3 tonnes. That was down 21 percent year-on-year, charting the lowest level since 2021.

However, while central bank gold purchases declined last year, they were still well above the 2010-2021 annual average of 473 tonnes.

Last year was the fourth-largest expansion of central bank gold reserves on record. The all-time high was set in 2022 (1,136 tonnes). It was the highest level of net purchases on record, dating back to 1950, including since the suspension of dollar convertibility into gold in 1971.

Gold Demand in Tech and Industry Up Modestly in Q1

Mon, 18 May 2026 00:00:00 EST

Gold primarily functions as a financial asset; however, it has other practical uses, despite the ignorant assertion by some that it is a “useless metal.”

In the first quarter, 81.6 tonnes of gold were used in tech and industrial applications. That was a 1 percent increase from the first quarter last year.

The electronics sector uses the most gold, gobbling up 69.3 tonnes in Q1, a 3 percent year-on-year increase.

Meanwhile, gold used in other industrial applications fell 8 percent to 10.4 tonnes.

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The World Gold Council described gold usage in the electronics sector as “on a two-speed setting.” There is sluggishness in consumer electronics demand due to higher prices. That is being balanced by surging demand in AI applications.

“Rapidly expanding AI infrastructure boosted demand for high-reliability and high-performance chips - technical specifications override cost considerations in these applications. Meanwhile, manufacturers in the price-sensitive consumer electronics market continued their efforts to reduce or replace gold in the face of record-breaking prices.”

Gold demand for electronics grew by 5 percent in mainland China due to the expansion of its domestic supply chain.

South Korea also reported unexpectedly strong demand (up 7 percent) with high memory output and strong fab utilization rates.

Gold demand in the Taiwanese electronics sector surged by 9 percent thanks to a big boost in AI-related demand.

The U.S. also saw solid growth in demand (6 percent) on the strength of domestic AI buildouts and EV demand.

Japan (-1 percent) and Europe (-3 percent) lagged due to weak manufacturing growth and stagnant consumer demand.

According to the World Gold Council, ongoing technical upgrades are increasing gold usage in devices.

“For example, AI servers and automotive power modules require more gold to dissipate large amounts of generated heat and to guarantee reliability and longevity. As a result, the growing share of advanced applications is strengthening and diversifying demand while increasing the sector’s resilience to demand fluctuations in traditional consumer electronics.”

Gold demand in the memory and semiconductor sectors rose sharply in Q1. According to the World Gold Council, AI server shipments are driving strong demand for DRAM and NAND. Significantly higher memory requirements per server, coupled with the increasing adoption of AI-enabled PCs and mobile devices, are juicing gold demand.

The use of gold in wireless and compound semiconductors also grew in Q1 with the rollout of Wi-Fi 7 and the expansion of power amps. The automotive sector and AI data centers are using more advanced power modules, supporting gold demand.

Demand for gold in the LED sector fell modestly by 1 percent in Q1. Price pressures and structural shifts in traditional markets such as general lighting were offset by growth in “high-end applications” such as micro-LED, automotive lighting, and UV LED.

According to WGC analysts, there seems to be a rotation in tech gold demand, with many older applications using less metal, with innovations taking up the slack.

“While traditional gold wire faces substitution pressures in lower-end applications, the AI boom continues to ramp up the need for high-purity gold in advanced applications. Overall, this is more than offsetting the decline in legacy uses, reinforcing gold’s critical role in the growing high-performance semiconductor manufacturing space.”

Meanwhile, gold is essentially being phased out of dentistry with the evolution of ceramic technology. Gold used in dentistry fell below 2 tonnes for the first time in the first quarter.

Useless? Really?

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Warren Buffett once said, “Gold gets dug out of the ground in Africa or someplace. Then we melt it down, dig another hole, bury it again, and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”

I even once heard a commentator on a major financial network claim gold is a "useless rock."

As you can see by the substantial demand for gold in technology and electronics, this is just silly.

In fact, gold is one of the most useful metals in the world. Due to its utility, coupled with its scarcity, gold is also one of the most valuable metals in the world.

In the first place, gold is strikingly beautiful. It has captured people's eyes for thousands of years. That’s why people all over the world love to wear gold. About 44 percent of gold demand is for jewelry production. About 300 tonnes of gold were used in jewelry fabrication in Q1.

But gold isn’t just pretty. As already mentioned, the metal’s inherent physical and chemical properties make it useful in many industrial and technological applications.

This is why we see gold increasingly used in the tech sector. In fact, gold would probably be used even more if it weren’t so rare and expensive.

Gold is also important in the medical field. Its inherent stability and unique optical properties make it perfect for use in diagnostic testing. The World Gold Council said that gold is “at the heart of the hundreds of millions of Rapid Diagnostic Tests (RDTs) that are used globally every year."

“This well-established and critically important technology has changed the face of disease diagnosis in the developing world over the last decade.”

Gold nanoparticles are used in testing for malaria, HIV, hepatitis, and other illnesses.

Gold has even been used in some exotic applications. In 2018, a team of Chinese researchers partially restored the sight of blind mice by replacing their deteriorated photoreceptors – sensory structures inside the eye that respond to light – with nanowires made of gold and titanium.

Meanwhile, gold serves as https://www.moneymetals.com/news/2026/04/10/astronauts-looking-through-gold-colored-visors-004828";>an integral part of U.S. efforts to land people on the moon.

The point is that gold is far from useless.

Central Bank Gold Buying Was Up in Q1

Mon, 18 May 2026 00:00:00 EST

Despite record-high prices early in the quarter and an uptick in selling at the end, central bank gold buying was up modestly in the first quarter.

Based on the World Gold Council’s number crunching of IMF and other data, central bank gold purchases were up a net 3 percent year-on-year, coming in at 243.7 tonnes.

That represented a 17 percent increase over Q4 2025 and was above the 5-year average. The World Gold Council said this underscored a “continued commitment to strengthening reserves with gold,” along with “the broadly strategic nature of their purchases and continued confidence in gold’s role as a store of value during periods of uncertainty.”

https://www.moneymetals.com/uploads/content/central-bank-gold-buying-q126.png"; width="750" height="456" class="mx-auto p-3" alt="" />

The Gold Buyers

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Despite rumors that Poland might sell gold to fund defense spending, the National Bank of Poland was the top gold buyer in Q1, adding another 31 tonnes to its reserves. The Polish central bank was also the biggest gold purchaser last year.

The Polish central bank now holds 582 tonnes of the yellow metal, accounting for around 31 percent of its official reserves.

Late last year, the https://www.moneymetals.com/news/2026/01/23/poland-announces-plans-for-another-expansion-in-gold-reserves-004631";>National Bank of Poland issued a statement saying it plans to purchase up to 150 more tonnes of gold, raising its holdings to a maximum of 700 tonnes.

NBP Governor Adam Glapiński said the increase in gold reserves would elevate Poland to an “elite” status.

“This will place Poland among the elite 10 countries with the largest gold reserves in the world.”

https://www.moneymetals.com/news/2025/05/19/poland-has-more-gold-than-the-european-central-bank-004053";>The Polish central bank already holds more gold than the European Central Bank. To put the country's gold reserves in context, the NBP held just 14 tonnes of gold in 1996.

The Central Bank of Uzbekistan was the number two gold buyer last quarter, adding 25 tonnes to its gold reserves. The latest buying lifts its gold holdings to 416 tonnes, representing 87 percent of the country’s total reserves.

It is not uncommon for banks that buy from domestic production – such as Uzbekistan and Kazakhstan – to flip-flop between buying and selling.

Speaking of Kazakhstan, its central bank was also in a buying mood in Q1, expanding its reserves by 12 tonnes.

The People’s Bank of China continued adding gold to its official reserves and quickened its buying pace with a 5-tonne purchase as prices fell in March, pushing its Q1 total to 7 tonnes.

The Chinese central bank has reported an increase in official reserves for 17 straight months.

It's reported that gold reserves now stand at 2,313 tonnes, making up about 9 percent of total official reserves.

Notice the emphasis on "official."

China is among the central banks that are likely to hold significantly more gold than they publicly disclose. As Jan Nieuwenhuijs has reported, the People's Bank of China is secretly buying large amounts of gold off the books. According to https://www.moneymetals.com/news/2025/04/02/chinas-gold-reserves-going-through-the-roof-003956";>data parsed by the renowned Money Metals researcher, the Chinese central bank is currently sitting on more than 5,000 tonnes of monetary gold located in Beijing – more than TWICE what has been publicly admitted.

Mainstream reporting has https://financialpost.com/financial-times/chinas-secretive-gold-purchases-fuel-rally";>finally picked up on this.

Notably, the World Gold Council reported, “Unreported buying remained elevated in the quarter.”

The Czech Republic has been one of the most consistent buyers over the last few years. The trend continued in Q1, as the Czech central bank expanded its reserves by another 5 tonnes. The Czechs have adopted a slow, steady approach, buying gold for 37 straight months.

The country added 20 tonnes to its holdings last year. It now holds 78 tonnes of gold. Czech officials say they plan to increase gold reserves to 100 tonnes by 2028.

There were several other buyers during the quarter.

Malaysia(5 tonnes)
Guatemala(2 tonnes)
Cambodia(2 tonnes)
Indonesia(2 tonnes)
Serbia(1 tonne)
The UAE (1 tonne)

The Gold Sellers

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Net gold sales increased dramatically in the first quarter, totalling around 115 tonnes.

Turkey’s reserves fell by about 70 tonnes in the first quarter as https://www.moneymetals.com/news/2026/03/27/turkey-sells-60-tonnes-of-gold-to-backstop-lira-004792";>the central bank sold metal to backstop its currency and cover rising energy costs.

Central Bank of Turkey Governor Fatih Karahan noted that “a significant part of these transactions are in the nature of gold-currency swap futures. In other words, when it matures, the gold in question will return to our reserves.”

Russia was also a seller last quarter, reducing its reserves by 22 tonnes. https://www.moneymetals.com/news/2026/04/30/russia-selling-gold-to-fill-budget-hole-004882";>The Russian government is tapping into gold reserves to fill budget holes created by the ongoing war with Ukraine and the ongoing economic sanctions.

While not a central bank, the State Oil Fund of Azerbaijan holds a significant amount of gold. However, its reserves fell by 22 tonnes in Q1 as it divested about half of the 53 tonnes it purchased last year.

The National Bank of the Kyrgyz Republic sold 1 tonne of gold, and the Bulgarian central bank transferred 2 tonnes of metal to the European Central Bank as part of its inclusion in the eurozone.

The Big Picture

Q1 gold buying continues a trend that’s been in place for several years.

The pace of purchases moderated in 2025 but remained far above the recent historical average. Official net full-year buying came in at 863.3 tonnes. That was down 21 percent year-on-year, charting the lowest level since 2021.

However, while central bank gold purchases declined last year, they were still well above the 2010-2021 annual average of 473 tonnes.

The surging gold price was likely a factor in slowing central bank gold accumulation. As the World Gold Council put it, the higher price prompted “a more cautious approach.”

“This highlights that central banks are not insensitive to price dynamics, even as their long-term strategic interest in gold remains firmly intact.”

Michael Oliver Warns of a Historic Gold and Silver Breakout as Debt Crisis Brews

Sat, 16 May 2026 00:00:00 EST

In a recent episode of the Money Metals Podcast, host Mike Maharrey sat down with veteran https://share.google/s4T76ZPgMTKz4nqk2"; target="_blank" rel="noopener">market analyst J. Michael Oliver, founder of https://www.olivermsa.com/"; target="_blank" rel="noopener">Momentum Structural Analysis (MSA), for a sweeping discussion on precious metals, government debt, the stock market, and what Oliver believes could become a historic turning point for gold and silver investors.

Oliver, who launched MSA in 1992 after beginning his career in futures brokerage with E.F. Hutton in 1975, explained that his analytical approach differs sharply from conventional technical analysis. Rather than relying on price charts or moving averages alone, MSA focuses on momentum structures that often reveal market turning points before they become obvious in price action. According to Oliver, momentum frequently signals tops and bottoms long before traditional analysts recognize them.

That framework has led him to one of the most bullish outlooks on precious metals he has ever held.

(Interview Starts Around 6:42 Mark)

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Geopolitical Headlines Are a Distraction

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Despite ongoing geopolitical turmoil, including the Iran conflict and lingering fallout from the Ukraine war, Oliver argued that global headlines are largely irrelevant to the deeper forces driving markets.

He pointed to the fact that gold, oil, and commodities peaked shortly after the Ukraine war began and noted that silver and oil had already been declining before the latest Middle East tensions escalated. Likewise, fears surrounding tariffs sparked a stock market selloff during the first quarter of 2025, yet markets later recovered and pushed to new highs even though tariffs themselves never disappeared.

To Oliver, these events are temporary emotional catalysts rather than primary market drivers.

Instead, he believes the real story lies underneath the surface: a structural crisis forming in the U.S. government bond market combined with a massive revaluation of gold and silver.

According to Oliver, the stock market is in the process of forming a major long-term top while the U.S. Treasury market is nearing a dangerous breaking point. He predicts gold and silver are preparing for what he described as an unprecedented upside explosion that could unfold within the next three to four months.

Why Oliver Thinks Silver Could Reach Triple Digits — Or Higher

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One of the interview’s most striking moments came when Oliver discussed silver’s upside potential.

He argued that silver has been historically mispriced for decades, trapped in a range between roughly $5 and $50 per ounce for nearly half a century. While gold repeatedly broke into new bull market highs during previous cycles, silver consistently failed to sustain major breakouts.

Oliver believes that imbalance is now correcting violently.

He compared silver’s current setup to copper in the late 2005 breakout period. Copper had traded lethargically between roughly 50 cents and $1.50 per pound throughout the 1980s and 1990s before suddenly exploding higher without any major headline catalyst. Within several quarters, copper surged to approximately $4.10 per pound.

Oliver also referenced the lead market’s sharp move in 2007 as another example of long-dormant commodities suddenly repricing upward after years of suppression.

In his view, https://www.moneymetals.com/news/2026/05/11/silver-rings-the-bell-004909";>silver is now poised for a similar catch-up phase.

He suggested silver could eventually reach between $300 and $500 per ounce, acknowledging that such targets sound extreme but arguing that markets frequently overshoot when correcting long-term pricing distortions. He noted that silver remains “insanely cheap” relative to gold and believes the gold-silver ratio is beginning to reverse decisively in silver’s favor.

Industrial Demand Is Colliding With Investment Demand

Oliver emphasized that https://www.moneymetals.com/news/2026/05/10/the-anatomy-of-a-silver-bull-run-and-other-silver-news-004906";>silver’s bullish setup is not merely technical.

He pointed out that the global silver market has operated in a supply deficit for approximately five consecutive years, with annual demand consistently exceeding available supply. Yet higher prices have failed to stimulate sufficient new production because most silver is mined as a byproduct of base metal operations rather than from primary silver mines.

That means rising silver prices alone do not necessarily encourage substantial increases in output.

At the same time, industrial demand continues to accelerate.

Oliver highlighted the rapid global expansion of solar power, particularly Chinese solar panel manufacturing. Photovoltaic cells rely heavily on silver, and China currently accounts for roughly 80% to 90% of global solar panel production demand. As renewable energy adoption expands worldwide, Oliver sees silver consumption continuing to rise sharply.

Layered on top of that industrial demand is silver’s historic role as money.

For thousands of years, silver served alongside gold as a trusted store of value, and Oliver believes investors are beginning to rediscover that reality as confidence in fiat systems weakens.

Gold’s Bull Market May Be Far From Finished

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Although Oliver expects silver to outperform gold on a percentage basis, he https://www.moneymetals.com/news/2026/05/14/the-dollar-is-shrinking-and-gold-could-explode-higher-004915";>remains strongly bullish on gold itself.

He noted that gold’s previous two major bull markets — from 1976 to 1980 and from 2001 to 2011 — both generated roughly eightfold gains from bear-market lows to cycle highs.

Starting from gold’s 2015 low near $1,050 per ounce, Oliver argued that the current move has only achieved approximately a fourfold increase so far. If gold merely replicated its historical performance, he suggested prices could approach $8,500 per ounce.

He also referenced a recent JPMorgan projection calling for gold prices around $9,200, noting that such targets align surprisingly well with his broader structural outlook.

Still, Oliver stressed that he does not believe gold would necessarily stop there because the monetary backdrop today is fundamentally different from prior cycles.

The Real Crisis Is Government Debt

Throughout the interview, Oliver repeatedly returned to what he sees as the central issue confronting global markets: government debt.

He contrasted today’s environment with the 2007-2009 financial crisis, which revolved around mortgage debt and private sector leverage. This time, he said, the danger lies in sovereign debt itself.

Oliver warned that the U.S. Treasury market, particularly long-duration bonds, is approaching a crisis stage. He believes 30-year Treasury bonds are on the verge of breaking down to new lows in price while yields move sharply higher.

Even Federal Reserve intervention may not be enough to stop it.

He cited comments from JPMorgan CEO Jamie Dimon, who recently warned about an approaching government debt crisis. Oliver agreed with that assessment completely, arguing that the Fed’s ultimate response will be aggressive money creation.

In his words, “Gold knows this.”

Oliver believes gold has already been pricing in the coming debt emergency long before the broader public recognizes it.

Inflation Is Money Supply Growth

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The conversation also touched heavily on https://www.moneymetals.com/news/2026/05/10/inflation-is-americans-biggest-financial-worry-and-its-not-even-close-004905";>inflation and Federal Reserve policy.

Mike Maharrey argued that many investors focus too narrowly on CPI data while ignoring money supply growth, and Oliver strongly agreed.

According to Oliver, money supply expansion itself is inflation, while rising consumer prices merely reflect that inflation later in the process. He noted that the S&P 500’s enormous gains since the 2000 dot-com peak largely mirror the expansion of the M2 money supply rather than representing genuine increases in real value.

Oliver also criticized the Federal Reserve’s long period of artificially cheap money. He pointed out that for roughly 10 of the last 15 years, Fed funds rates remained near zero, creating what he described as a massive liquidity-driven bubble in financial assets.

Now, he believes that bubble is beginning to crack.

Warning Signs Are Emerging Beneath the Surface

Although major stock indexes continue hovering near highs, Oliver sees deterioration occurring underneath the surface of the financial system.

He specifically highlighted weakness within the financial sector, noting that Visa, Mastercard, banks, insurers, and broker-dealers have all started underperforming the broader S&P 500.

According to Oliver, the XLF financial sector ETF is collapsing relative to the S&P in a manner similar to the pattern that emerged before the 2007 financial crisis.

He warned that investors remain focused on the wrong stories — Iran, tariffs, artificial intelligence, and short-term market moves — while missing the far more important structural deterioration taking place in credit markets and financial institutions.

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Oliver also suggested that recent vertical moves in semiconductor stocks and companies like NVIDIA resemble classic late-stage bubble behavior rather than healthy long-term market leadership.

Why Oliver Prefers Silver Over Cash

Toward the end of the interview, Maharrey asked Oliver about his own investment positioning.

Oliver revealed that his personal portfolio is heavily concentrated in silver bullion ETFs and silver mining stocks, along with some exposure to gold miners and commodity-related assets.

Of course, we also know the https://www.moneymetals.com/investment/silver-etf-vs-physical-silver";>many risks and issues that arise from paper ETFs when compared with physical precious metals (e.g., physical silver and physical gold). Physical precious metals carry far less counterparty risk than paper investments and provide final settlement because they are non-liability monetary assets.

Importantly, however, Michael Oliver said he has little interest in eventually rotating profits back into fiat cash because he views paper currencies as rapidly depreciating stores of value.

Instead, once silver experiences the explosive upside move he anticipates, Oliver expects to https://www.moneymetals.com/buy/gold";>rotate substantial gains into physical gold bullion, treating gold not as an investment but as true savings and real money.

For Oliver, the coming years are not simply another commodity cycle. They represent a broader reckoning with debt, fiat currency, and confidence in financial institutions themselves.

Michael Oliver: Silver Resilient Despite Iran Headwinds -- Here’s What’s Next…

Fri, 15 May 2026 00:00:00 EST

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.

Coming up don’t miss another tremendous interview with Michael Oliver of Momentum Structural Analysis. Michael has decades of experience in the financial industry and is especially in tune with the silver market, having called the rally that started back in the fall to a T, and was repeatedly calling for $100+ silver well before it happened, a number we saw back in January.

Find out what Mr. Oliver has to say now given the backdrop of the Iran War, which many have blamed on keeping a lid of silver here in recent months since that big run up and subsequent correction earlier this year. He has some things that may surprise you about what he deems as noise in the market, and exactly how much stock he is putting into the current headwind coming from the Iran War, a situation that many have perhaps overblown when it comes to the short-term effect on the silver price.

This is certainly a man you want to listen to when it comes to the direction of the silver market, so be sure to stick around for Mike Maharrey’s conversation with Michael Oliver, coming up after this week’s market update. And if you enjoy this material, please do us a favor and like and subscribe to this podcast wherever you consume this content.

The inflation dragon is alive and well.

Last November, Donald Trump called himself “https://truthsocial.com/@realDonaldTrump/posts/115633174669225455"; target="_blank" rel="noopener">the affordability president.” However, it appears that the message is falling flat with your average American.

Based on https://news.gallup.com/poll/708905/affordability-dominates-americans-financial-worries.aspx"; target="_blank" rel="noopener">a recent Gallup poll, affordability tops the list of Americans’ most pressing financial problems. In total, 65 percent of the respondents mentioned rising costs as their biggest economic concern. The survey was conducted between April 1st and April 15th.

Of those surveyed using open-ended questions, 31 percent mentioned persistently high inflation and rising prices as their biggest financial worry. According to Gallup, general inflation worries are among the highest in its more than 20-year trend.

On top of the nearly third of Americans worried about inflation generally, many more pointed to increasing prices in specific categories as their biggest concern.

“Overall, affordability concerns dominate this year’s list, with combined mentions of inflation, energy, housing, and healthcare costs — along with college expenses, transportation costs, and childcare — far exceeding all other types of financial concerns” the report said.

Meanwhile, worries about rapidly increasing energy prices were up 10 percent from last year and at the highest level since 2008.

In a separate Gallup Panel survey, 55 percent of those surveyed said recent price increases have created hardships.

Less than half of Americans view their financial situation as excellent or good. Around 35 percent described it as “fair,” with 19 percent calling their overall financial position “poor.”

And inflation isn’t just a figment of our imagination. It is supported by the data.

We’re all painfully aware of rising fuel prices due to the Iran conflict. The energy index rose 10.9 percent month-to-month in March. That was driven by a 21.2 percent monthly increase in gasoline prices.

But other prices continue to creep higher as well. Annual core inflation, stripping out those fuel prices, nudged up slightly, from 2.5 percent in February to 2.6 percent in March. It’s important to point out that core CPI remains above the Fed’s stated 2 percent target and has been mired in this range for well over a year.

Also, keep in mind that the CPI formula intentionally understates price inflation. The https://www.moneymetals.com/news/2024/01/15/the-cpi-lie-price-inflation-is-even-worse-than-advertised-002930";>government revised the CPI formula in the 1990s so that it understated the actual rise in prices. Based on the formula used in the 1970s, CPI is closer to double the official numbers. So, if the BLS used the old formula, we’d be looking at CPI closer to 6 percent. And using an honest formula, it would probably be worse than that.

And there is no relief in sight. The Federal Reserve is creating more inflation as we speak.

Consumer price inflation is just one symptom of monetary inflation (what economists https://www.moneymetals.com/news/2024/01/12/common-definition-of-inflation-you-hear-today-is-wrong-government-propaganda-002925";>historically defined as inflation). The Fed has been ratcheting that up for well over a year.

Based on https://fred.stlouisfed.org/series/M2SL"; target="_blank" rel="noopener">the Fed’s M2 data, the money supply increased from $21.6 trillion in February of 2025 to nearly $22.7 trillion in February of this year, a 4.9 percent increase.

In other words, we have an actual inflation rate of nearly 5 percent.

Ultimately, this monetary inflation will work its way through the economy. It will either manifest in rising asset prices or rising consumer prices. Ultimately, it is devaluing your money… by design.

So, if you’re hoping inflation will cool, don’t hold your breath. In fact, you should do everything you can to position yourself to weather more inflationary pressure.

Well, before we get to this week’s interview let’s review the market action in the metals here. And we’re recording this on Thursday evening, so these numbers are based on the Thursday closes.

Gold closed Thursday at $4,664 an ounce, showing a 1.4% decline since last Friday’s close.

Silver was making another run at $90 an ounce after a big rally early in the week, only to see it pull back a good bit on Thursday. The white metal was still up over $3 on the week and came in at $84.26 as of the Thursday afternoon close, registering a 3.9% gain with a day of trading left to go in the week.

Platinum was essentially unchanged when the market closed on Thursday, coming in at $2,069. And finally, palladium was off 2.7% to check in at $1,464 an ounce.

Well now, for more on the metals markets, and specifically silver, let’s get right to our exclusive interview.

Mike Maharrey: Greetings, I'm Mike Maharrey and I'm joined today by J. Michael Oliver. Michael is the brains behind Momentum Structural Analysis. Welcome to the show, Michael. How are you today?

Michael Oliver: I'm good to hear. Good to be here.

Mike Maharrey: Well, it's always a pleasure to have you and you've been on the show before, but I don't want to assume that everybody knows who you are. So, before we really dig into the meat of things, I would like for you to just kind of talk about what is momentum structural analysis and how does it differ from more traditional forms of analysis that we find out there?

Michael Oliver: Well, I started this in 1992, so 30 some years ago. I used to be on the futures brokerage side of the business that started in ‘75 with Hutton in New York. But we provide research that is not based on just looking at price charts like most technicians and looking at overlays of moving averages and things like that. What we do is we take price, we oscillate it versus certain moving averages and create what we call a momentum oscillator. And quite often it'll look sometimes like the price chart and then other times it'll deviate where you might look at the momentum chart and say, "My gosh, that's a topping pattern." And you look at the price chart and say, "Hey, everything looks great." Usually momentum's right. And so that's what we do and we examine all four major asset categories, not just the stock market, not just commodities, gold, silver, but T-bonds as well, foreign exchange, et cetera.

And anyway, that's what we do.

Mike Maharrey: Yeah, that makes sense to me. So basically, you're kind of capturing the trends that may not be visible just looking at the price itself, right?

Michael Oliver: That's correct. Yeah. Usually when price becomes obvious that it's broken its trend, gone somewhere new direction, it's well off the higher, well off the low, whereas momentum tends to act often before it even turns.

Mike Maharrey: Yeah, that makes sense. So with that in mind, how do you analyze something like this crazy environment we're in now where we have this war that's kind of putting an outsized hand print on everything in the markets right now? What are you seeing in terms of precious metals and the impact of the war? And has it changed your overall outlook at all?

Michael Oliver: Not at all. In fact, it's irrelevant is what I would say. Most people, when they talk about monetary metals, for instance, the phrase is often used of global uncertainty helps drive gold. Well, it doesn't. Okay. Go back and look at the start of the Ukraine war. Gold peaked several weeks later. So did commodities, so did oil. Okay. Then the start of this war, oil and silver had already sold off, but they had another wave of selling after that. These factors that come and go are essentially to be ignored. Take, for example, stock market, tariffs. Tariffs wasn't even a term that was used until Trump came in. And so in January, February, March, and part of April last year, 2025, there was a sharp selloff in the stock market based on what? Tariffs, spook people. Okay. Tariffs haven't gone away and yet we V-bottomed out of there and made new highs.

Okay. Now the stock market also sold off recently, so did gold and silver based on the Iran thing. Well, it's going to come and go. And it's irrelevant to the underlying larger fundamentals that I think our conclusion is the stock market is making a major top. The bond market is in deep crisis trouble, US government bond market and monetary metals are about to explode in a way that you have not seen before in the history of the monetary metals. And I think it's going to occur largely in the next three to four months. So anyway, and these have nothing to do with Iran. Okay.

Mike Maharrey: We've seen both silver and gold trading in this range bound fashion over the last couple of months really. I saw a video that you did the other day that you expect silver to once again be back in those triple digit range. So, I'm curious as to what you're seeing, what's the basis. How you see the silver market moving right now?

Michael Oliver: Okay. We saw this last year and think about this for a minute. If silver goes crazy like we say it's going to, and it's not really going crazy, it's catching up for errors that it's committed for decades underpricing. If it goes to three to $500 an ounce, that looks like off the page lunatic assumption. But there are many historical examples that's not common, I'll admit. For a market that has been artificially or for some reason underpriced for a long time suddenly wakes up and says, "Oh my gosh, I made a mistake." And it zooms. Example, copper. Okay, copper back 1980s, 1990s, 2000, up through late 2005, copper was in a boring range from 50 cents a pound to a buck 50 back and forth then back and forth, just like silver was up to 50 bucks down, 50 bucks down for 50 years. Okay.

Copper decided in late 2005 to move out of that range. There was no headline event. It was not sympathetic to other base metals. It was just on its own. It broke out and within several quarters it had tripled in price and got up to $4.10 versus the prior range averaged a buck and it did it without headlines, but when it did it, it did it rapidly. The same thing happened to the lead market in 2007. Very exciting markets.

In a matter of several quarters, they left behind decades of prior price lethargy. How come silver has been caught between 50 bucks and five bucks for 50 years, whereas the other monetary metal, gold, every time it had a bull trend would blast out its old prior bull market peak. It wasn't contained or copper wasn't contained or lead wasn't contained. Silver made a mistake. Now there's arguments that, well, it's manipulated. Okay. Maybe that's the reason, maybe that's part of the reason. But the point is it said, "I'm out of here." And often when a market makes a mistake like a overblown stock market on the upside, for example, when they go down, they often go down even more than they might otherwise do to overcompensate for their error. Silver's doing the opposite from below. Not to mention- Yeah, go ahead. No, you go ahead. No, not to mention we have an ongoing bull market in the monetary metals anyway.

So, it's not like Silvers doing something that's out of sync with its overall trend anyway. It's merely going to accelerate its upward trend and it's going to beat gold and get back to values that make sense historically of silver divided into gold. It's extremely cheap right now relative to gold abnormally insanely cheap. It's going to compensate for that and I think it's going to do it in a tantrum.

Mike Maharrey: Do you think really the fundamental issue with silver is that there's just not enough metal and we've got all of this paper silver floating around out there that kind of muddies the waters? But ultimately doesn't it come down to just how much metal is there and how much metal do people want?

Michael Oliver: Well, silver again, people forget it is an industrial metal, a precious industrial metal, but it's also a monetary metal. But let's go look on the industrial side. We know for the last five years or so, the supply has not matched demand at a deficit year by year by year. And even though the price has increased, it is not enticed that much more production primarily because silver production doesn't mainly come from silver miners. It comes from base metal miners. And so their primary incentive for getting silver out of the ground is not silver. It's to get the copper out or whatever other base metal they're going in. So its higher price doesn't necessarily spark increased production. But also, the Chinese, for example, are producing solar panels around the world and the photovoltaic cells are in the solar panels. There's silvers in there. Okay. They constitute about 80 to 90% of global demand for solar power, which is exploding across the world, demand for solar power as a competition to the price of oil, for example.

That means more demand for silver ongoing. It's not going away. And in order to compensate for that, you finally have to, maybe you have to go overboard in price to absolutely wake up all the producers and get them going. Then you have the monetary metal aspect as well. It is for thousands of years been money. Never forget that.

Mike Maharrey: So you've talked about this, the kind of dichotomy between the gold and silver price and we see that in the gold silver ratio. Are you equally bullish on gold as well? Do you see more momentum behind it?

Michael Oliver: Oh yeah. The gold's going up, but it's just not going to match on a percentage basis, especially from this point forward what silver does. Silver is likely to triple or more the gains that we see coming in gold. So for example, I use this all the time as an example and it's just a ho-hum statement, meaning gold's done this before. It's two prior bull markets were both eight fold moves from bare low to bull high, 76 to 1980, 2001 to 2011, different time spans, but both were eight fold gains. Okay. We started from 1,050 in December to ... We're only fourfold right now in gold. Okay. If it goes eightfold, it'll be like $8,500 just to match the percent gain it saw twice before in the past 50 years. Okay, let's say gold goes to 8,000. Actually, JP Morgan, I think a couple months ago came out with a fundamental projection of 9,200.

So, they're in line with that ho-hum target. I don't know that gold's going to stop there. In fact, I don't think it will because there's certain monetary factors underway that are crisis events and they're not headlines and they should be. But silver, when we plot the relationship between silver and gold on a technical basis, it has broken out last November versus gold from very cheap levels. And I think silver could easily triple or more in relative value to gold and do so very quickly. The same is true with silver miners versus the gold miners. They will likely beat the gold miners.

Mike Maharrey: So, you just piqued my curiosity and monetary policy is kind of one of my pet interests. And so I'm curious what you're seeing that you just mentioned that folks are missing. I'm always curious because we get so caught up in the headlines of the day and I know that there's all kinds of things that go on under the surface that your average guy that's watching CNBC misses. So what do you see going on in the monetary markets that is troubling?

Michael Oliver: Well, the last major stock market decline we had in economic downturn was in 2007, eight and nine, and that was mortgages, mortgage crisis. This time we have government debt crisis. We know we have it in Japan. They've been having a crisis trying to put that fire out and they printed, printed, printed. The US government deficit of the debt problem is increasing, increasing. Excuse me. Jamie Diamond last week said we're facing a debt crisis, government debt crisis. Our timing says he's right. We think the US government bond market, 30-year bonds, are about to slip into new lows in price, new highs and yields regardless of Fed manipulating short end of the market. That is a crisis event that they have to prevent. Only one way to do that. Get the hoses out and print the money. Gold knows this. That's why it's been going up. It knows this crisis is coming and Jamie Dimon is dead on this time, technically speaking.

I know he's not speaking technically. Anyway, that's where we are and that's the major headline that is not out there.

Mike Maharrey: Yeah. Our friend Greg Weldon calls it a “debt black hole” and I love that analogy because a black hole impacts everything around it. And we have this and that's why I'm always flummoxed by this absolute certainty that people seem to have that the Federal Reserve is not going to lower interest rates. We've got this inflation. And I've always said that when push comes to sub, they always pick inflation and printing the money as opposed to allowing the stock market to follow economy collapse.

Michael Oliver: If it gets on fire, this is not one of their mandates, see. Unemployment is one okay and that supposedly looks good. We ran studies of unemployment in our weekend report just showing what did unemployment look like back around the dotcom top. Did it warn you that the market was going into a bear trend? Did it warn you in 2007 when the market was topping? No, unemployment looked great. It was very low. It was sideways. No concerns mate. It was not till about six months later when the market had already topped and headed down hard before unemployment showed itself. So, that mandate at the Fed is meaningless. And the other one is, of course, the inflation issue, which is going to bother them because it's not going to stop. This is not just oil. This is the commodity complex turning up because the money flows that are created by central governments are now starting to go into that cheap asset category, underpriced commodities and stocks related there too.

I don't just mean the gold sector. That's leading. But the commodity complex itself by our studies turned up last October, the Bloomberg Commodity Index. It was then at 10650. Right now we're trading 142 and yet there are no headlines other than the oil recently. It's the broad ... So anyway, so when the Fed's going to have that problem, they can't shrug it off, but they have to because they got to print anyway. Otherwise, the house burns down.

Mike Maharrey: I don't think a lot of people realize that if you look at the Fed balance sheet, they're actually printing now. It's kind of a dirty little secret that you don't hear talking about a whole lot out there in the mainstream. And I've argued for a long time that quit watching the CPI for your inflation indicator, watch that money supply.

Michael Oliver: Money supply is the inflation.

Mike Maharrey: Yeah, exactly!

Michael Oliver: CPI is merely a reflection of it.

Mike Maharrey: Thank you!

Michael Oliver: Yeah. And so are commodity prices right. So it's the stock market rising. In fact, if you look at the S&P in the year 2000 at the dotcom top and look where this price is now and then go look at an M2 chart and calculate where it was in 2000 versus now, the S&P has merely matched the growth in the money supply. So it is not really gained in value in real spendable terms. So yeah, money growth is inflation. You're quite right.

Mike Maharrey: Yeah. It's interesting though, because when you talk about the stock market, a lot of people seem to think, well, it's going up and people have been saying it's in a bubble for years. I mean, is it inevitable that it's eventually going to deflate…

Michael Oliver: Well, yes, it is because it always does, but the question is when.

And this one happens to be the oldest bull market US history. The most gain on the upside since 2009 of any bull market, S&P's up 10, 11 fold, NASDAQ's up 20 plus fold. And you compare that to 23 to 29 in the Dow or any of the bull markets in history, the dotcom bull market, which is like a tripling quadrupling or the real estate bubble in 2007, which was only like a doubling and a half in the 2000 lows. It's 2002 lows. There's no comparison. We have a bubble and when it breaks, many of the errors that are embedded in it, the decisions that were made wrongly by institutions, by industry, by family planning, based on one factor that was artificially created, the cost of money. The Fed made it cheap over the last 15 years. If you look at a Fed funds chart, 10 of those 15 years, it was zero, free money, Cheech and Chong time.

And even when they up-ticked it, like the 5% or something briefly during that 15-year period, you go back and look 75 years back on the Fed funds chart, even that is in the lower third of the normal interest rate levels that the Fed governs. So, money was free. So you drugged up the stock market, plenty of money flow to go into there. The problem is that whenever a bloated market that has been stimulated by money growth gets excessive, there's finally a point where reality takes over and says, "Hey, I'm going somewhere else." And when that money starts to flow and it's already begun to, you can see it in the gold miners and gold, silver. Somebody's putting money in there, not the average Joe, but some big asset managers are starting to do it. Even the CIO of Morgan Stanley about three months ago, he said, "Hey, 60 / 40 rule out the window. Gold should be a component." So, the issue isn't that they keep printing money and the stock market goes up because usually when they start printing to save the stock market, it never goes there. It goes somewhere else and we know where it goes. Two places used to be bonds and gold would work. Now it's only gold. T-bonds aren't working.

Mike Maharrey: Would you agree that we never really paid the piper for the malfeasance of the 2008 financial crisis?

Michael Oliver: Yep, yep.

Mike Maharrey: Yeah, because basically COVID kind of gave them an out to double down. And so now we have 2008 plus pandemic all sitting out there waiting to be

Michael Oliver: Corrected. No, it created errors. Yeah, you're right. They blew the bubble up twice. There's no question and you'll pay the dues for it. And that is what gold knows, but it also knows now it's not just a bloated stock market. We've got a government debt market that can't be pushed down the road again. This time, like Jamie Diamond said, it's a crisis now and we're going to have to deal with it and it ain't going to be pretty. He didn't say that. I say that. But technically we assess the bond market is now about to become the headline. It should have been already, but everybody's chattering about Iran, which will come and go. Everybody's chattering about AI, which by the way, if you look at NVIDIA and go anywhere in about a year. And also we've just had a bubble blow off verticality in the semis recently, which is not a good sign for the stock market because you don't want a structure that's so strong it goes vertical.

Okay. Now in the case of monetary metals, they can do it because likely when they get up there where they're going, let's say within this year, most likely much of it by this summer, certain other facts of reality will change. This is not just another cycle, quote unquote. Too many institutions and assumptions will come into question and doubt because the pain will be terrific here elsewhere. Average guys, layoffs, commodity price inflation, not just oil going up, not based just on the Iran situation. People will be pulling their ... And when they lose money in their retirement account, which is the only thing they can smile about right now, all of a sudden it drops 30%. Can you imagine the emotion and doubt that will cause institutions to come into question like fiat money or central banks? It could be tabula rasa out there, but we're going to see that this year in the markets, the beginning of that in terms of the fundamentals.

Mike Maharrey: I'm in agreement with you. I think there's still a lot of people that it's still 2007 in their head and they're ... I heard Larry Kudlow not too long ago talking about how there's no problems out there. Everything's fine. Everything looks great.

Michael Oliver: Yeah. Yeah. Right. Yeah.

Mike Maharrey: No problem in the private credit market. Nothing to worry about. And he was saying that in 2007 too about subprime.

Michael Oliver: Oh, he was good. Yeah. No, we've studied the relative performance between the financial sector and the S&P. Most people aren't focused on the financial sector, but we are. And late last October, a couple quarters ago, we said, uh-oh, watch Bank of America ... Not bank marker. It should be Visa and MasterCard. And sure enough, you punch up those charts and you'll see, hey, they're not doing what the stock market's doing. They're not collapsing, but they're steadily going down. Something's going on there. And then when you look at the broader financial sector, XLF is a good ETF to look at. It includes banks, large banks, insurance companies, broker dealers. It is in a collapse mode versus the S&P. When you plot the difference between XLF and S&P, it's making multi-decade lows as we speak relative valuation to the S&P. It started to do this back in 2007 before the top occurred.

The same thing happened. Suddenly the financials got anemic. S&P made a new high in October of 2007. Financials didn't. Spread was collapsing. We're getting the same thing right now. So everybody's looking at the wrong headlines is what the point be.

Mike Maharrey: Yeah. I think that's very common in this day and age too, especially with the advent of social media where every headline is splashed across the entire world. It's crazy. All right. I've got one more question for you, just kind of a fun one before I get you out of here. Do you have a favorite gold or silver coin around or even a bar that do you really like?

Michael Oliver: No.

Mike Maharrey: No?

Michael Oliver: No, no. I have no preference on that. I just say that, and this is my own personal investment position as well. I have to declare that at the end of our reports, what I own, et cetera. What I own in my portfolio is highly concentrated in silver bullion ETFs and silver miners. I do own some GDX. I own some commodity assets as well, but primarily silver and silver miners. Now, once I see this move occur that I think is going to occur in a wet bar of soap manner being squeezed, okay, between now when we come up out of here, and by the way, we see enough technical evidence right now to say even before price of gold and silver, take out this range high, we see enough action within that range that momentum tells us this rally is going to take hold, this particular rally we're seeing now, it's going to get us up out of here.

But once on the other side of that, once we get that explosive effect where they price themselves probably beyond where they might otherwise be, what do I do? Do I take profits and put it in quote cash? But what's cash? A piece of paper that's being depreciated so rapidly that when you look at an M2 chart, you think, "God, we're in the Weimar Republic." Or, "I'm going to move it over to gold bullion and take my silver profits and move most of it over into gold bullion and not regard it as an investment. I'm putting it in cash."

Mike Maharrey: You're saving in real money.

Michael Oliver: Real money. Yeah.

Mike Maharrey: Absolutely. That's a great answer. All right. So where can folks go to find you and avail themselves of your immense knowledge and wisdom?

Michael Oliver: Olivermsa.com. OliverMSA for momentum structural analysis dot-com. Take your time. We have a part on the site where we explain our methodology in a laborious but explanatory way and request some sample copies of our reports.

Mike Maharrey: Yeah, absolutely. It's fantastic. It is a different approach and I really appreciate that. And I think you're digging into a lot of things that are a lot deeper than maybe gets spotted in other places. So I really appreciate you. I appreciate you taking a little time out of your day to hang out with me. I know you're a busy man, so I'm going to let you go.

Michael Oliver: Thank you, Michael.

Mike Maharrey: Thank you. Well, I'd definitely love to have you back again at some point and thanks a lot.

Michael Oliver: Thank you. Bye, Michael.

Mike Maharrey: Bye.

Another great conversation there with Michael Oliver and we will look to have him back on throughout the year. Remember this man was all over the big rally in silver back in the fall and earlier this year that saw it finally eclipse $50 for the first time ever and then run up to over $100. It’ll certainly be worth getting his insights as we see things progress, so we’ll be sure to check in with him from time to time.

Well, that will do it for this week. Be sure to check back next Friday for our next Weekly Market Wrap Podcast. And to check out any of our audio programs, including our second podcast, the Money Metals Midweek Memo, just visit https://www.moneymetals.com/podcasts"; target="_blank" rel="noopener">MoneyMetals.com/podcasts or find them wherever you listen to your favorite podcasts. And as a big help to us we would ask you to please like, subscribe, download and rate our podcasts. Doing so helps us extend the reach of this material.

Until next time, this has been Mike Gleason with https://www.moneymetals.com/"; target="_blank" rel="noopener">Money Metals Exchange, thanks for listening and have a wonderful weekend everybody.

What Is Gold Bullion? Definition, Types, and Why Investors Buy It - Money Metals

Thu, 14 May 2026 00:00:00 EST

Gold bullion is physical gold in the form of bars, coins, or rounds that is valued based on its weight and purity rather than its collectible or face value. It is typically at least .995 fine and trades closely with the global spot price of gold, making it a standard form of investment-grade precious metal.

Bullion represents investment-grade metal that trades closely with the global spot price of gold. In contrast to jewelry or numismatic coins, investors buy gold bullion for its intrinsic metal content.

Investors can choose from government-issued bullion coins like the American Gold Eagle, or they can find privately minted gold rounds and bars. Each of these assets provides different advantages when it comes to liquidity, prices, and storage.

In today's uncertain financial environment, many Americans turn to physical gold bullion as a way to protect purchasing power and reduce reliance on paper assets. This guide will explain what gold bullion is, how it's priced, the types available, and what you need to know before buying.

How Gold Bullion Works

Now, let's get a little more technical. Gold bullion typically meets a standard purity of .995 fine or higher. Most modern products actually exceed the .995 threshold, now reaching purity levels of .999 or .9999 fine. These standards are recognized globally and generally fit the specifications of major market authorities like the London Bullion Market Association.

That standardization is the thing that allows investors to trade bullion globally and efficiently.

It's also good to know a crucial distinction between legal definitions and market definitions. Some governments classify legal tender gold coins as bullion, despite their face value. One example of this is the American Gold Eagle. In the market, however, bullion refers to any gold product that is priced primarily by its metal value. That applies to coins, bars, and rounds.

Gold bullion should not be confused with other assets that might contain gold, such as jewelry or numismatic coins. Jewelry carries added costs for craftsmanship and design, often making it inefficient as an investment.

Numismatic coins derive value from rarity, age, and condition, which can fluctuate independently of gold prices. In contrast, bullion is much more straightforward. It simply tracks the gold spot price, a fact that makes it more transparent and trusted by investors.

Types of Gold Bullion

Gold bullion comes in three primary forms: bars, coins, and rounds. All of these items are measured in troy ounces, though bars in particular can greatly exceed that amount. Despite their shared gold purity, though, these three serve a different purpose depending on an investor's goals, budget, and exit strategy.

Type	Form	Typical Purity	Best For
Gold Bars	Cast or minted bars	.999–.9999	Low premiums, bulk investment
Gold Coins	Sovereign mint coins	.9167–.9999	Liquidity, recognizability
Gold Rounds	Private mint discs	.999+	Lower-cost alternatives

Gold bars are perhaps the most simple form of bullion. Bars are produced primarily by private refiners, though some government mints also produce bars. The Royal Canadian Mint is the most prominent example.

Bars range from small 1-gram pieces to large 400-ounce institutional bars. Investors generally choose bars for one reason: lower premiums per ounce. If you want to accumulate the most gold content for the smallest premiums, bars might be your best bet. They come with a tradeoff though; these bars come with less flexibility and liquidity, especially when it comes to larger sizes.

Gold coins offer a balance between investment efficiency and liquidity. Coins like the American Gold Eagle or Canadian Maple Leaf have high trust and global recognition because they come from sovereign mints like the U.S. Mint or Royal Canadian Mint.

That recognition makes them easier to sell quickly, often at competitive prices. Investors who value divisibility and global acceptance tend to favor coins, even if they carry slightly higher premiums.

Gold rounds look similar to coins but are produced by private mints and carry no face value. They typically offer lower premiums than coins while still being easy to store and handle. Their biggest disadvantage is that they do not have the same level of recognition and trust as government-issued bullion. That can matter in certain resale situations.

Does that mean you have to choose just one to invest in? In practice, no. Many investors hold a mix of the three: bars for efficiency, coins for liquidity, and rounds as a cost-effective middle ground.

How Gold Bullion Is Valued

The value of gold bullion starts with the spot price of gold. The spot price is the current market price for one troy ounce of pure gold traded globally. The price changes by the minute based on supply and demand in major financial markets. The two most common include futures exchanges and over-the-counter bullion markets.

However, investors do not buy bullion at its spot price. Instead, they pay premiums over the spot price on any bullion product. Premiums cover the real-world costs of turning raw gold into a finished product. Some of those costs include:

Refining
Minting
Transportation
Dealer margins
Distribution

For example, a one ounce gold coin might sell for $50 to $150 over spot, depending on current market conditions and the demand for that coin.

Premiums are not fixed, however. Like the spot price, they rise and fall based on demand, supply constraints, and market stress. During periods of economic uncertainty, the demand for physical gold often spikes. At such times, mints can struggle to keep up their production, which in turn causes premiums to spike. That can happen even if the spot price does not rise.

Conversely, calmer markets often produce lower retail demand for bullion. When that happens, premiums may also shrink. Supply chains often normalize and dealers compete more aggressively on their bullion prices.

Understanding this divide between spot price and premiums can give investors an edge. It can help you understand how it is that two gold products with the same weight and purity can have vastly different prices. Spotting such distinctions can help reduce your chances at overpaying on premiums and preserve your long-term returns.

Gold Bullion vs Numismatic Gold Coins

This distinction often trips up newcomers to the precious metal market. It is possible to find gold numismatic coins that resemble gold bullion and have high gold purity. However, there are core distinctions to know about these products.

Bullion coins are investment-grade products priced primarily based on their gold content. Examples include the American Gold Eagle, Canadian Maple Leaf, and Austrian Philharmonic. They do carry small premiums, but overall, their value rises and falls with the gold spot price. These coins are easy to verify and highly liquid, making them worthwhile investments.

By contrast, numismatic coins derive much of their value from several factors. Some of these include:

Rarity
Age
Condition
Collector demand

Two coins with the same gold content can have significantly different prices depending on their historical significance or grading. Some of these rare coins appreciate significantly, and a few even reach million-dollar highs. However, these factors are complex, and evaluating these coins requires specialized knowledge.

Liquidity is another significant difference. Bullion coins are generally easier to sell quickly at transparent prices, especially with reputable dealers. Collectible coins, however, often require finding the right buyer or auction environment to realize full value.

A common mistake is overpaying for coins marketed as “rare” or “exclusive” when the investor's real goal is exposure to gold itself. Most investors do better to stick with widely traded bullion coins. They offer a simpler, more reliable way to own physical gold without speculation.

Why Investors Buy Gold Bullion

Investors buy gold bullion for one simple reason: they do not fully trust the long-term stability of paper money. While stocks, bonds, and currencies depend on governments and financial institutions, physical gold stands apart as a tangible asset with no issuer and no promise attached to it.

One of the most common motivations is inflation protection. However, too many guides are too vague about this concept. Gold does not always move in lockstep with short-term inflation data.

The reason so many investors trust its hedge capacities is because gold performs well over longer cycles when confidence in fiat currency declines. Gold has historically been an excellent counterbalance when purchasing power erodes or central banks expand the money supply.

Many value gold bullion as a store of wealth outside the financial system. Unlike other assets, such as digital dollars in your bank account or stocks, physical gold does not have a counterparty risk. There is no institution that you have to trust to ensure the gold retains value.

Another factor is monetary history. Modern currencies run on a fiat system, in which money derives its value from governmental trust. Under this system, the financial system and monetary supply is managed by central banks. In contrast, gold functioned as money for millennia; some investors see gold bullion as a way to anchor part of their wealth in something that cannot be printed or digitally created.

That said, gold is not a growth asset. Unlike stocks, physical gold will not generate income or dividends. Investors typically hold bullion to preserve purchasing power and diversify risk from their existent wealth. It is not a “get rich quick” commodity. Rather, it serves as a form of financial insurance, and becomes most valuable when other assets come under pressure.

Risks of Gold Bullion

Gold bullion is often viewed as a safe haven asset, but that does not mean it has no drawbacks. Investors should pay attention to these drawbacks so as not to overestimate what gold can do for a portfolio.

First, gold produces no income. Stocks produce dividends, and bonds generate interest. In contrast, bullion simply sits in your portfolio. Its value depends entirely on price appreciation over time, and that can be a slow process for long periods.

Storage and security also require consideration. Physical gold must be protected, which requires secure storage. Several options exist, including home safes, private vaults, and bank deposit boxes. Each choice comes with advantages and disadvantages in cost, accessibility, and potential risk. Poor storage decisions can lead to theft or loss.

Another factor is the buy/sell spread. When you buy bullion, you pay a premium over spot. When you sell, you may receive a sum that falls slightly below spot. The results largely depend on your chosen exchange and market conditions. That spread creates a hurdle, but you need prices to rise enough just to break even.

Finally, there is the issue of counterfeit bullion. Counterfeits are rare, especially when dealing with reputable dealers. However, fake bars and coins do exist in secondary markets. It is essential that you verify your seller's trustworthiness before you purchase their products. It helps to look for gold bars that come in assay.

Gold can play an important role in a portfolio, but it works best when investors understand both its strengths and its limitations.

How to Buy Gold Bullion

Buying gold bullion is not complicated, but it does require discipline. Even little mistakes can cost you, especially if it involves premiums or dealer selection.

So, start your purchasing process by figuring out what form of bullion fits your goals. Coins are typically easier to sell and widely recognized. Bars, however, offer lower premiums for larger purchases. Many investors begin with one ounce coins to ensure flexibility.

Next, choose a reputable dealer. Look for established companies that have transparent pricing, strong customer reviews, and a long track record in the industry. Avoid high-pressure sales tactics or “exclusive” deals that sound too good to be true.

It's also good to pay close attention to premiums over spot price. Two products with identical gold content can have very different prices. Comparing prices across dealers helps ensure you are not overpaying for essentially the same metal.

When you are ready to buy, place your order and lock in that price. Most dealers offer several payment options, including bank wire, check, or card. Note, however, that card use often leads to higher fees.

Once your payment clears, the dealer will ship your bullion or else have it stored according to your preference.

How to Store Gold Bullion Safely

Once you own gold bullion, storage becomes an essential decision. There is no one-size-fits-all solution for storage. Each option can work for investors, but each has tradeoffs regarding security, access, and cost.

Home storage offers immediate access and privacy. A high-quality safe, properly installed and concealed, can be effective. However, it also places full responsibility for security and insurance on you, the investor.

Bank safe deposit boxes provide an added layer of protection for investments and are often reasonably priced. However, they also provide limited access to your metals. You can only access them at the bank during their business hours. Moreover, you also have to pay for your metal insurance in this scenario.

Private vault storage is generally the most secure option. Professional vaults offer immense security and provide insurance coverage. Sometimes, they even allocate storage for your specific metals, all of which are held in your name. However, these provide the least access to your metals, and these vaults require ongoing storage fees.

The best decision depends on your priorities. It also depends on how much gold you own and how you plan to use it. Many investors split their holdings across multiple locations to balance security and accessibility.

Frequently Asked Questions

What is gold bullion?

Gold bullion is physical gold that is valued based on its weight and purity, not its collectible value. It comes in three forms: bars, coins, and rounds. It is typically at least .995 fine and trades closely with the global spot price of gold.

Is gold bullion a good investment?

Gold bullion is best used as a long-term store of value and portfolio diversifier. It does not generate income, but it can help preserve purchasing power during inflation, currency devaluation, or financial instability.

What purity of gold bullion is best?

The best gold bullion purity is typically .999 or .9999 fine, which is considered investment-grade. Higher purity helps provide transparent pricing and aligns with global standards. However, some coins, like the American Gold Eagle, use slightly lower purity for durability.

Is bullion taxable?

In the United States, gold bullion is taxed as a collectible. This means profits may be subject to higher capital gains rates than stocks when they sell for a profit. Tax rules can vary due to location, so ensure you consult a qualified tax professional.

How do you sell it?

You can sell gold bullion through dealers, coin shops, and online platforms at prices based on the current spot price (minus a small spread). Widely recognized bullion products typically sell faster and command more competitive pricing.

Is Gold Bullion Right For You?

The answer to ‘What is gold bullion?' is straightforward. The tricky part is making that knowledge work to your advantage.

So, what's next? First, assess your financial goals. How does gold fit into your strategy?

Once you have decided on that, you can determine what type of gold bullion will best fit your needs. Then, you can find an exchange that offers the bullion asset you need.

Inflation does not have to devalue your wealth or assets. Finding the right gold holdings can help you preserve your assets in bad economic conditions. Use this guide to find the best products to protect your portfolio.

Tax Revenues Drive April Budget Surplus Even as Spending Keeps Going Up

Thu, 14 May 2026 00:00:00 EST

As is typical in April, the federal government ran a budget surplus last month thanks to the influx of income tax revenue. But despite this seemingly good news, every metric reveals further deterioration in America’s fiscal situation.

The surplus of $215.02 billion was 16.8 percent lower than last year, as revenues dropped and spending increased.

Through the first seven months of fiscal 2026, the deficit stands at $953.56 billion, about 9 percent lower than through the same period in 2025. The lower deficit is primarily a function of increased tariff revenue, as spending is up.

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For context, the biggest deficit run by the Obama administration was $1.41 trillion in 2009.

The relentless monthly budget deficits keep https://www.moneymetals.com/news/2026/02/19/no-the-national-debt-problem-isnt-getting-better-004701";>pushing the national debt higher. After eclipsing $38 trillion in October, it https://www.moneymetals.com/news/2026/03/19/national-debt-quietly-eclipses-39-trillion-004774";>blasted through the $39 trillion mark in March.

Rolling in the Dough

Total federal receipts came in at $837.34 billion in April. That was up over 117 percent from last month, reflecting April income tax receipts. But total revenues were down 1.7 percent compared to April 2025.

Through the first seven months of fiscal 2026, the federal government has collected $3.3 trillion. That is up 7 percent compared to the same period in fiscal 2025.

Tariff receipts totaled $22.1 billion last month. This includes $2 billion in tariff refunds.

So far in fiscal 2026, the federal government has collected $195 billion in customs duties.

Tariff revenue appears to be softening. Customs receipts last month were roughly the same as March, but down from $26.6 billion in February and from an average of $30 billion per month late last year.

Spending It All and More

Meanwhile, the Trump administration continues to spend money hand over fist.

The government blew through another $622.32 billion last month. That was up 5.2 percent over the same period last year.

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That drove total spending to $4.27 trillion through the first seven months of fiscal 2026. That’s up 3 percent from the same period last year.

A 3 percent increase in spending might not sound significant. But weren't we told there would be spending cuts?

In fact, there were some cuts in the Big Beautiful Bill (along with spending increases).

The increased spending comes despite cuts to the EPA and the Department of Education budget, along with staffing reductions that are now showing up in the data. Lower disaster spending also helped moderate spending levels through the first two months of fiscal ’26.

However, looking at the big picture, the spending trajectory is up. Even with all the hype about DOGE and some lip service to cutting spending during the early days of the Trump administration, the U.S. government spent just over $7 trillion last year. That’s an average of $583.3 billion per month or $19.2 billion per day.

And now there's a war.

That cost is starting to show up in the data. Military spending was up by $6 billion or 10 percent year-on-year. However, a Treasury official told Reuters that while the increase reflected some war spending, the costs of the Iran conflict were spread across several categories, including personnel and maintenance costs, research and development operations, and procurement.

A Pentagon official recently estimated the federal government had spent $29 billion on the war as of mid-May.

Despite some non-specific talk about “spending cuts,” there seems to be little to no commitment to dealing with the runaway spending substantially.

The Big Beautiful Bill trimmed some spending but increased it in other areas. Furthermore, those “cuts” were from projected spending increases. Actual expenditures will still go up, just not as fast as originally planned. The bottom line is that even with the Big Beautiful Bill, spending will increase on an absolute basis. We’re seeing it now.

And all that waste uncovered by DOGE? Virtually none of it was removed from the budget.

This is par for the course. It’s a lot easier to talk about spending cuts than it is to actually cut spending.

You might recall that President Biden promised that the [pretend] spending cuts would save “hundreds of billions” with the debt ceiling deal (aka the [misnamed] Fiscal Responsibility Act).

That never happened.

Supporters of the Big Beautiful Bill expect economic growth stimulated by tax cuts to boost revenue and narrow the deficit. However, https://www.moneymetals.com/news/2025/06/07/will-tax-cuts-pay-for-themselves-004111";>history casts significant doubt on this claim.

The ugly truth is the government isn't committed to cutting spending in any meaningful way, and it always finds new reasons to spend even more, whether for "crises" at home or wars overseas.

The Cost of the Debt

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Uncle Sam must pay interest on the nearly $40 trillion debt. Interest expense has grown into the second-largest spending category in the federal budget behind only Social Security.

In April, the Treasury forked out $111.6 billion on interest payments alone. That was a new monthly record.

April interest payments pushed total interest expense to $734.2 billion through the first seven months of fiscal 2026. That was up 7.3 percent compared to the same period in fiscal ’25.

Interest on the national debt cost $1.2 trillion in fiscal 2025. That was up 7.3 percent over 2024.

Net interest (interest expense – interest receipts) was $97 billion in April.

Through the first half of the fiscal year, the federal government spent more on interest on the debt than it did on national defense ($558 billion) or Medicare ($590 billion). The only higher spending category is Social Security ($957 billion).

Much of the debt currently on the books was financed at very low rates before the Federal Reserve started its hiking cycle. Every month, some of that super-low-yielding paper matures and must be replaced by bonds yielding much higher rates.

When people say the spending is unsustainable, it feels like an understatement. In fact, it’s fair to call https://www.moneymetals.com/news/2026/03/26/the-us-government-is-insolvent-yes-that-matters-004791";>the federal government insolvent.

However, very few people in the political class seem the least bit interested in tackling the problem. The bad news is that at some point, the problem is going to tackle them.

Precious Metals News & Analysis - Gold News, Silver News from Money Metals Exchange

You Ask Mike; Mike Answers!

When Did Pennies Stop Being Copper? - 1982 Penny Composition Change Explained - Copper vs Zinc Pennies - Money Metals

When Did Pennies Stop Being Made of Copper?

When Did Pennies Stop Being Copper?

The 1982 Transition Explained

Why the U.S. Mint Changed Penny Composition

Copper vs Zinc Pennies: How to Tell the Difference

Are Copper Pennies Worth More?

Should You Save Pre-1982 Pennies?

Frequently Asked Questions

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The End of Penny Production

Structural Supply Deficits Forecast to Continue Driving Platinum Group Metal Prices Higher

Ghana Central Bank Seeks to Increase Domestic Gold Buying to Boost Reserves

Gold Demand in Tech and Industry Up Modestly in Q1

Useless? Really?

Central Bank Gold Buying Was Up in Q1

The Gold Buyers

The Gold Sellers

The Big Picture

Michael Oliver Warns of a Historic Gold and Silver Breakout as Debt Crisis Brews

Geopolitical Headlines Are a Distraction

Why Oliver Thinks Silver Could Reach Triple Digits — Or Higher

Industrial Demand Is Colliding With Investment Demand

Gold’s Bull Market May Be Far From Finished

The Real Crisis Is Government Debt

Inflation Is Money Supply Growth

Warning Signs Are Emerging Beneath the Surface

Why Oliver Prefers Silver Over Cash

Michael Oliver: Silver Resilient Despite Iran Headwinds -- Here’s What’s Next…

What Is Gold Bullion? Definition, Types, and Why Investors Buy It - Money Metals

How Gold Bullion Works

Types of Gold Bullion

How Gold Bullion Is Valued

Gold Bullion vs Numismatic Gold Coins

Why Investors Buy Gold Bullion

Risks of Gold Bullion

How to Buy Gold Bullion

How to Store Gold Bullion Safely

Frequently Asked Questions

What is gold bullion?

Is gold bullion a good investment?

What purity of gold bullion is best?

Is bullion taxable?

How do you sell it?

Is Gold Bullion Right For You?

Tax Revenues Drive April Budget Surplus Even as Spending Keeps Going Up

Rolling in the Dough

Spending It All and More

The Cost of the Debt