News
Blanchard in the News
The following articles provide Blanchard and Company, Inc. experts’ opinions on issues affecting gold investors and the gold market.
Silver coin sales hit record pace, outshine gold
Jan. 30, 2012
Blanchard and Company said it was selling now more 500 one-ounce Silver American Eagle "Monster Boxes" than ever. Last week, one client bought 17 of the $18,500 boxes at once — a more than $300,000 purchase, said vice president David Beahm. ... Blanchard and Company, one of the top retail coin dealers based in New Orleans, said it is now selling more of those 500-coin monster boxes than ever. "Not only do we have new silver investors coming in, we also have gold investors coming back to put more money in silver," said Beahm.
Gold prices at 4-week high on China demand
Jan. 11, 2012
"We predict that $2,400 is a reasonable target for this year," says Donald Doyle, Chairman & CEO at Blanchard & Co. — the largest retail metals dealer in the U.S. "The principle factors that are pushing gold higher now have really been in place for some time." Doyle points to global economic uncertainty, a concerted effort for currency devaluation around the world, strong supply & demand fundamentals, and growing global central bank holdings. "We think that it's inevitable that we're going to see significantly higher prices," says Doyle.
An exceedingly rare 1787 gold Brasher Doubloon has been sold for $7.4 million, one of the highest prices ever paid for a gold coin.
Blanchard and Company, the New Orleans-based coin and precious metals company that brokered the deal, said the doubloon was purchased by a Wall Street investment firm. Identities of the buyer and seller were not disclosed.
Minted by Ephraim Brasher, a goldsmith and neighbor of George Washington, the coin contains 26.66 grams of gold – slightly less than an ounce. Worth about $15 when it was minted, the gold value today would be more than $1,500.
The Brasher doubloon is considered the first American-made gold coin denominated in dollars; the U.S. Mint in Philadelphia didn't begin striking coins until the 1790s.
Gold: The hedge against political stupidity
Nov. 3, 2011
Gold is said to be a hedge against inflation, deflation and all other nasty sorts of economic bugaboos. It looks like it may be a hedge against political incompetence too. …
"What's driving gold right now is that investors don't know what to do. All the rumors in Europe are making people worried," said David Beahm, vice president of economic research with Blanchard and Company, Inc., a New Orleans-based investing firm that specializes in gold and other precious metals.
"Gold may be volatile, but I can't see a reason why it would go down much. I think a price of $2,000 by the end of the year is still possible," Beahm added.
Gold, silver bullion coins' 'fondle factor'
Sept. 30, 2011
If you're looking for a safer place to park your money these days, gold and silver bullion coins may be it, but don't expect to make a quick buck. …
Accumulating "normal" gold bullion coins is referred to as "stacking" by the current crop of gold aficionados, and the gold bugs who amass such bullion coins aim to buy them, regardless of price, on bets that gold itself can only go higher. …
To insure the gold, it would be cost roughly 20 cents per $100 value, according to David Beahm, vice president of precious metals investment firm Blanchard and Company, Inc., so insuring $1,000,000 of gold would cost $2,000. …
It may cost a bit more to own coins rather than bars, but to many, coins are worth it.
At Blanchard, you can buy a one-ounce gold American eagle coin for as low as 4% above spot prices and a one-ounce gold bar would be as low as 2.5% above spot, according to Beahm.
Rising gold price prods pawn competition
Sept. 21, 2011
Among more traditional investors, the erratic stock market is leading the wary to seek solace in gold, said David Beahm, vice president of economic research and marketing at Blanchard and Company, a New Orleans-based coin and precious metals dealer.
"I think that since 2008 when we saw the financial crisis hit, investors are looking more and more at this," he said.
Beahm said revenues for the privately owned company have risen 25 percent to 30 percent so far this year, although he would not disclose specific figures. While adding that gold is "just a fraction" of what Blanchard does, he said that is "certainly driving" the increase in revenues. August was the best month in the company's history, he said.
Beahm said he's confident the rise will continue, though one way for it to ebb would be if the Federal Reserve were to sell some of its gold stock to shore up uncertainty in the American dollar, he said.
"While we certainly don't think people should liquidate their entire investment portfolio, we do think investors should have 10 percent to 20 percent in gold," he said. "It's just smart. It's an insurance policy. It's a hedge."
40 years on from gold standard, bugs crow
Aug. 11, 2011
Gold, and only gold, will be our salvation when the value of companies, banks, countries and even money itself melts away. Gold, not shifting currencies, is the foundation of wealth and security. Gold is back, for good.
This is the song of the "gold bugs" - the fervent fans of the precious metal who have clung to its investment value for three generations and now glow in the reflected luster of a record price approaching $2,000 for just one ounce. …
Long-term gold bull David Beahm, vice president of marketing and economic research at New Orleans bullion dealer Blanchard and Co., says worries over the stability of the stock markets will be a key driver of higher gold prices.
"The best investment right now is gold," he said. "By diversifying one's portfolio with a negatively-correlated gold, investors can protect themselves from deep plunges in the equity market."
"There is no news in the market today or over the coming few months that is likely to stop the current gold bull market, as the fundamentals are firmly in place for gold to continue its rise," he says.
Investors turn to gold amid wall of worries
Aug. 10, 2011
With all the ups and downs on Wall Street, demand remains strong for safer investments, especially gold. But is it the right investment for everyone? …
"We're seeing investors flock to it for a safe haven and right now, investors feel like it's prudent to have 15 to 20 percent of their portfolio in gold," explained David Beahm, vice president of economic research with precious metals dealer Blanchard & Company.
Gold at all-time high. Thanks, Washington!
July 25, 2011
Paul R. La Monica talked to Blanchard and Company executive David Beahm for his CNNMoney column, "The Buzz": "The biggest factor driving gold is the debt ceiling news – or lack thereof. Nobody wants risk right now," said David Beahm, vice president of economic research with Blanchard & Company Inc., a New Orleans-based investing firm that specializes in tangible assets like gold and other precious metals.
Beahm said that if (or more hopefully when) there is an agreement to raise the debt limit, gold prices should pull back a bit because the dreaded cloud of "uncertainty" will finally be lifted.
But even if a deal is reached soon, gold could continue to climb higher once the euphoria about avoiding Default-ageddon subsides. …
Gold isn't just rallying because of the problems in the U.S. either. Beahm still thinks gold could go higher because it's not as if Europe's debt problems are completely solved. …
Beahm … said he thinks gold may have room to run until it gets close to the all-time inflation-adjusted highs for the metal from the early 1980s. And that's between $2,200 and $2,300 an ounce.
Even though that may sound high -- it's another 40% higher from current levels -- Beahm notes that people who have been doubting gold and calling it a bubble have been wrong for a while now.
"Sure, a lot of people have been saying they don't want to buy gold at what they think are the highs," he said. "But many have been saying that since gold was at $800 an ounce."
Gold vaulted past $1,600 an ounce Monday, driven by worries about the federal debt limit and ongoing problems in Europe. …
At Blanchard & Co., a New Orleans precious metals dealer, business was brisk. "Looking at the numbers coming in, I'd suspect that this will be the best July ever" for gold sales, says David Beahm, vice president of economic research.
One-ounce gold U.S. Eagles are the hottest seller, Beahm says, but smaller coins in 1/10th of an ounce are popular, too, partly because they're more affordable. "People want any kind of gold they can get their hands on," Beahm says.
"Gold investing: what to do and how to do it"
April 15, 2011
April 15 – Investors can still make a lot of money in the gold market – or prevent losing it, if they do their homework before they wade through a sea of investment choices. …
David Beahm, a vice president at precious-metals retailer Blanchard and Company, says gold and silver bullion coins are "sold for only a small margin above the spot price."
Some dealers, however, advertise new bullion products as numismatic investments – in other words, they have special value to collectors – and so charge a much higher premium than is typically charged for a bullion product, he said.
"The reality is that these new mint products should have a value that correlates close to their precious metal content."
US Mint's silver Eagles hit record 4.6 mln oz in Jan
Jan 19, 2011
NEW YORK, Jan 19 (Reuters) – Sales of the U.S. Mint's American Eagle silver coins have already hit a monthly record in January as prices have declined enough to attract buyers seeking exposure in precious metals and those who expect industrial demand for silver to grow.
Sales of the popular one-ounce silver American Eagles rose to 4.6 million coins so far in January, the Mint's website showed on Wednesday. That makes for an all-time monthly high since the coin's introduction in 1986, with more than 10 days left in the month.
The previous record was 4.3 million in November.
David Beahm, vice president of U.S. retail gold coins dealer Blanchard & Co, said sales of silver products are close to the level they hit in the fourth quarter of 2008 during the worst financial crisis since the Great Depression.
But he said that while demand in 2008 was prompted by the search for a safe haven from collapsing financial markets, now demand is being fed by hopes for a strong recovery.
"People are generally thinking that the economy is improving. Since silver has such a higher use than gold from an industrial standpoint, if you are going to be exposed to precious metals right now, silver is the way to go," Beahm said...
Commodities: The bull that just won't die
January 3, 2011
NEW YORK (CNNMoney) -- Gold, oil and other commodities enjoyed a stellar run in 2010. The party may not be over just yet ... but investors have to be wary.
Several experts say that the main forces behind the bull run in commodities last year, namely strong economies in emerging markets coupled with worries about the health of the U.S. and Europe, are likely to remain in place this year. ...
$1,300? Some say gold will hit $2,300!
September 24, 2010
NEW YORK (CNNMoney.com) -- Gold finally traded above $1,300 an ounce Friday morning. So is that the peak or can the precious metal actually head even higher?
As tempting as it is to say that gold is an absurdly overvalued yellow bubble, several pretty savvy people say there are compelling reasons for gold to keep climbing.
Some investors are worried that the Federal Reserve's commitment to buying more Treasurys could mean higher inflation down the road. So far, inflation has not been a near-term problem. And the chart at the top of this page clearly shows that gold can go up without inflation pressures. ...
US gold coin sales surge as investors flee risk
May 7, 2010
NEW YORK, May 7 (Reuters) -- U.S. gold coin sales surged this week as the anxiety over a euro-zone debt crisis spilled over into the United States and as Thursday's sudden Wall Street collapse shook investors.
The U.S. Mint sold gold coins this week at twice its normal pace, and a leading retailer said Thursday was a record day.
Physical gold products such as coins and bars are traditionally a safe haven for anxious investors in times of economic and geopolitical crises. On Friday, U.S. stocks turned negative for the year on fears of another credit crisis. ...
Sales of gold coins by the U.S. Mint have risen to their highest levels since December 2008, with coin dealers reporting that business is booming thanks to demand from investors unnerved by Europe's sovereign-debt problems and a sharp decline in stock markets.
So far in May, the U.S. Mint has sold 158,000 one-ounce 2010 American Eagle bullion coins, according to the agency's website. This is already more than double the full-month total of 65,000 for May 2009.
Gold, trading at about $1,200 an ounce, has hit record highs in recent weeks, even as other commodities have fallen sharply, as investors seek assets that are thought to retain their value during volatile times. The increased demand for gold coins, which tend to be purchased by private investors who want to hold physical metal, indicates that the concerns about the deepening financial problems in Europe are weighing on an increasingly wide swath of investors.
"We've seen a tremendous uptick in investors looking toward gold for their portfolio," said David Beahm, vice president for marketing and economic research with New Orleans-based coin dealer Blanchard and Co. "It's been like that for a couple of years now. But just over the last two or three weeks, it has exploded."
