Gold Climbs as CPI Cools, Boosting Case for 2026 Fed Rate Cuts
Posted on — Leave a commentGold climbed toward its record high in late December, following news the Consumer Price Index slowed in November. Investors bought gold and silver after the CPI report as cooling inflation gives the Federal Reserve room to cut interest rates more aggressively in 2026 to help the faltering labor market.
Non-yielding assets like gold and silver perform well in low-interest rate environments and this latest report helps sets precious metals up for a strong start to the New Year.
The CPI averaged a 0.1% increase in October and November, according to the Bureau of Labor Statistics. The November annual CPI rate dropped to 2.7% from 3% in September. Economists were expecting a 0.3% increase in CPI inflation and a 3.1% annual reading. Because of the lengthy government shutdown this fall, the October and November CPI reports were combined.
Digging into the CPI report, several categories revealed outright deflation. For example, consumer prices in the lodging away from home, recreation, and apparel categories fell from September to November. This helps set the stage for inflation to ease further in 2026.
For investors, this is a strong signal the Fed will continue to favor boosting the jobs market with lower interest rates in 2026. The tamer CPI reading boosted odds for a Fed interest rate cut at its January meeting.
Big Picture for Precious Metals
Gold and silver are wrapping up an extraordinary year with outsized returns for precious metals investors. Gold climbed over 60% and silver is up 117% this year. Some investors may wonder “is it time to take profits” or “is the top in?” Not even close.
Looking at bull markets in gold going back to the 1970’s, the precious metal only stopped going up when the underlying drivers in the macro environment changed. We haven’t seen that. The drivers pushing precious metals are still firmly in place including a weakening U.S. dollar, strong central bank buying, geopolitical unrest around the globe, economic uncertainty and worries about the growing U.S. national debt.
On the economic front, there is growing evidence of weakness in the U.S. labor market—with over 1.1 million job layoffs announced in the first 11 months of the year. This will force the Fed to throttle back on interest rates in 2026.
A slowing economy and lower interest rates are two key ingredients that will keep the tailwinds blowing strong in the precious metals historic rally into the New Year.
Bank of America forecasts that gold will hit $5,000 an ounce in 2026. J.P. Morgan highlights a scenario that could push gold to $6,000 an ounce. Silver is in the midst of a historic uptrend with Saxo Bank calling for gains toward $70 in 2026, Citigroup sees potential for silver to climb to $72 next year.
How can you take advantage of this inflation news? Precious metals investors can lean into the strong uptrends and use this time to increase your allocations to physical precious metals before the end of the year and before the Fed cuts rates again.
Get ahead of the curve before gold and silver make their next leap higher. Get started by increasing your allocation to precious metals today. And, you can protect and grow your wealth for tomorrow.
The 1795 Flowing Hair Half Dime: America’s First Silver Coinage in Miniature
Posted on — Leave a commentIn the earliest days of the United States, coinage was not simply a matter of commerce. It was a declaration of independence. When the young nation struck the 1795 Flowing Hair Half Dime, it did so with limited resources, immense ambition, and a clear desire to prove that America could stand on its own. Small in size but immense in historical importance, this coin represents the birth of federal silver coinage and the fragile optimism of a country still defining itself.
A Nation Learning to Mint Money
Following the passage of the Coinage Act of 1792, the United States authorized its first official coinage system. The law established denominations, standards of weight and fineness, and the Philadelphia Mint as the center of production. What it did not provide was an easy path forward. Equipment was primitive, skilled engravers were scarce, and bullion supplies were inconsistent. Even so, by 1794 and 1795, the Mint began striking silver coins for circulation.
The half dime held a special role. As the smallest silver denomination authorized by law, it was intended for everyday transactions. In a time when foreign coins circulated freely and barter was still common, a federally issued silver coin signaled stability and trust. The 1795 Flowing Hair Half Dime became one of the earliest tangible expressions of that trust.
The Flowing Hair Design and Its Meaning
The design of the Flowing Hair Half Dime closely mirrors the motifs seen on other early silver coins. Liberty appears facing right, her hair long and loose, flowing freely behind her. This was not accidental. Early American artists avoided rigid or crowned imagery, choosing instead to depict Liberty as natural and unrestrained. The flowing hair symbolized freedom, youth, and a break from Old World traditions.
On the reverse, a simple wreath encircles the denomination. There is no eagle on the half dime at this time, which underscores how experimental early coin designs could be. The emphasis was not on grandeur but on function. This was a coin meant to circulate, to be handled daily by merchants, farmers, and laborers.
A Coin Born of Scarcity
One of the most fascinating aspects of the 1795 Flowing Hair Half Dime is how it was produced. Unlike later issues struck from refined domestic silver, these coins were minted using silver supplied directly by private citizens. Depositors brought silver bullion or foreign coinage to the Mint, which was then melted and struck into United States coinage. In return, depositors received newly minted coins, minus a small fee.
This process meant that production numbers were limited and inconsistent. It also meant that every half dime represented a collaborative effort between the government and its citizens. In a very real sense, Americans were helping to create their own money supply.
Circulation in an Uncertain Economy
The late 1790s were economically volatile. The United States had no central bank for much of this period, and confidence in paper money remained shaky after the inflationary experiences of the Revolutionary War. Silver coins like the half dime were trusted precisely because their value was intrinsic.
These coins circulated alongside Spanish reales, Dutch silver, and other foreign issues. Many were heavily worn through years of use, which is why well preserved examples are especially prized today. Each surviving coin carries the marks of early American commerce, passed from hand to hand in taverns, markets, and general stores.
Rarity and Survival
The 1795 Flowing Hair Half Dime had a relatively small mintage, and survival rates are low. Many examples were lost, melted, or worn beyond recognition. Those that remain offer collectors a rare opportunity to hold a piece of the nation’s earliest monetary history.
Collectors are often drawn to this coin not for its size or flash, but for its authenticity. It is a coin from a time before mass production, before steam presses, and before standardized dies. Every example shows subtle variations that reflect the handmade nature of early Mint operations.
Why the 1795 Half Dime Still Matters
Today, the 1795 Flowing Hair Half Dime stands as more than a numismatic rarity. It is a reminder of how fragile and determined the early United States truly was. This small silver coin helped establish confidence in federal coinage and laid the groundwork for everything that followed.
Holding one is like holding a chapter of American history. It connects the modern collector to a moment when the nation was young, uncertain, and hopeful, striking silver coins not just to facilitate trade, but to prove that the experiment of American independence could endure.
Fast Growing AI Sector to Boost Silver Industrial Demand Over Next Five Years
Posted on — Leave a commentNot long ago, artificial intelligence felt like science fiction—something you read about in a book or saw in a movie. Today, it’s become a part of our daily life.
From asking a voice assistant for the weather, to the way streaming platforms tailor our playlists, or how cars navigate traffic on their own, artificial intelligence is behind the scenes powering these moves.
For precious metals investors, it’s noteworthy to see that as AI technology expands throughout our economy, it is increasing industrial demand for silver—and that’s expected to grow significantly over the next five years, according to a new report by London-based Oxford Economics
Silver: An Essential Component in AI Computing
Today’s new artificial intelligence systems need materials that can handle extreme electrical loads and thermal stress far beyond conventional computing applications—and that’s where silver comes in. Silver is playing a critical role in the AI hardware revolution thanks to its unmatched electrical and thermal conductivity.
Consider silver’s physical attributes:
Electrical conductivity: Silver possesses the highest electrical conductivity of any metal at 63.01 million siemens per meter. That makes it the top choice for high-frequency applications in AI hardware.
Thermal management: AI processors generate thermal loads that far exceed conventional computing, which means advanced heat dissipation capabilities are crucial. Silver’s thermal conductivity rating of 429 W/m·K represents the highest of all metals. Silver provides heat transfer that is 7% better than even copper.
In data centers that run AI models, silver is used in high-performance chips like GPUs and TPUs for internal connections, packaging, and semiconductors, ensuring efficient data processing without overheating. These massive facilities, often consume as much power as small cities, and rely on silver-plated connectors and switchgear to distribute electricity reliably and safely at high voltages.
AI Data Centers are Driving New Industrial Silver Demand
Global electricity demand from data centers is expected to more than double by 2030, largely because of AI workloads, according to the International Energy Agency (IEA).
Looking forward, the acceleration of digitalization and the widespread adoption of AI are expected to continue gathering pace, placing growing demands on both digital and physical infrastructure. As AI applications diversify into media production, design, and simulation, demand for servers’ processing power and, by extension, data center infrastructure is expected to continue growing, the Silver Institute said.
As the world pivots toward the adoption of AI into nearly every industry, silver is poised to play a critical role as a “next generation metal.”
Is It Time to Increase Your Allocation to Silver?
Silver is in high demand as a monetary metal and for its extensive industrial uses. That demand is forecast to grow in the years ahead. With silver poised to climb in 2026 as high as $65 or even $70 an ounce according to forecasts from Bank of America and a bullish forecast from Citi—the question becomes do you own enough?
How much silver you should allocate to your portfolio depends on your risk tolerance, time horizon and your existing exposure to physical metals.
If you allocate 15% of your portfolio to precious metals, most mainstream portfolio modeling suggests that silver could comprise 40-60% of that slice with the remainder in gold. None of these are hard rules and it’s always worth exploring your personal situation with a Blanchard portfolio manager who can provide unique guidance tailored to your financial goals. But the evidence is clear. It’s prudent to treat silver as an important component of your diversified portfolio plan.
Ready to get started today? Explore silver investment options here.
Fed cuts rates to 3-year low, Gold climbs above $4,200
Posted on — Leave a commentFed Cuts Rates as Dissent Grows Inside the Central Bank
For the third time in 2025, the Federal Reserve slashed interest rates by a quarter point, bringing the benchmark rate down to 3.50-3.75%, a 3-year low. The dissents on the Fed board continues to grow as two members voted to keep rates steady and a third voted to cut rates by a half of a percentage point in a 9-3 vote on Wednesday. 
Market Reacts
Gold traded above $4,200 an ounce after the Fed’s decision and silver trades near its new all-time high at $61.31. Stocks gained modestly and Treasury yields declined on the news.
Big picture? The Fed remains between a rock and hard place. Board members made today’s decision despite big blind spots about the state of the economy in the wake of government-shutdown delayed economic reports. And the Fed board is torn between the conflicting forces of stubbornly high inflation and a weakening labor market.
Tough Choices: Jobs and Inflation
The Fed has been trying to walk a tight walk this year. Why? Because interest rate cuts can help strengthen a weakening jobs market, but rate cuts also increase inflation.
Fed Chairman Jerome Powell admitted today in typical Fed-speak understatement that the two goals of the Fed (to promote maximum employment and stable prices) are “a bit in tension.”
Future Rate Cuts Are Cloudy
Looking into the crystal ball for 2026, given the current uncertainty over the actual state of the jobs market and inflation given the delayed government data, Powell also said that he doesn’t think a rate hike is anybody’s base case for the next policy move. The Fed Board’s median projection for 2026 includes just one quarter-point rate cut.
Gold and Silver: Top Performing Assets in 2025
In the midst of the uncertainty, gold and silver stand out as two of the best-performing assets of the year. Gold has chalked up gains of over 60% and silver has nearly doubled in value with a 97% gain. Precious metals are still climbing with new record highs forecast at $5,000 in 2026 for gold and at $65 for silver.
Investors are turning to gold amid a world filled with geopolitical instability, macroeconomic uncertainty, upside risks to inflation, runaway government debt, a weakening U.S. dollar, and concerns that an unsustainable AI-bubble is fueling recent stock market gains.
In the third quarter of this year, Harvard, the world’s largest endowment fund, increased its exposure to gold, totaling over $235 million now. In the midst of rising prices, major institutional investors, hedge funds, high net worth individuals, and everyday Americans are still increasing their allocation to the safety of both gold and silver.
Navigating 2026 Headwinds: Gold and Silver Provide Safety
As we move into a New Year, take the time to explore if your current allocations match your risk tolerance levels. Indeed, today’s risk for investors may be that you are not holding enough precious metals. In a world filled with instability, gold and silver provide the certainty and security of a 5,000-year track record of building wealth. If you’d like a personalized recommendation for your portfolio, Blanchard stands ready to assist. Give us a call today.
ADP Report Reveals Job Losses, Manufacturing Contracts for Ninth Month
Posted on — Leave a commentImagine if you could be a fly on the wall at the next Federal Reserve meeting. From a new round of job losses in November to a lengthy contraction in the U.S. manufacturing sector, when the Fed meets Dec. 9-10, there will be plenty for the Fed governors to talk about.
Gold in A Holding Pattern
Since notching a fresh record high in October, gold trade has turned consolidative and sideways as the market takes a breather after its 50%+ gain this year. The long-term uptrend in gold remains intact and these latest signs of renewed economic weakness are positive for the precious metal. Dips toward the $4,000 level have been quickly bought by long-term investors and any weakness in gold is short-lived.
Fresh Look at Labor Market – Small Businesses Lead Decline
In November, private-sector ADP payrolls tumbled by 32,000, while companies with less than 50 employees shed 120,000 jobs—that’s the biggest one-month decline since May 2020. The new ADP report, coming just ahead of the December Fed meeting, shines a spotlight on weakness in the jobs market and gives more ammunition for Fed governors who are pushing for an interest rate cut before the end of the year. Policymakers have been divided on another rate cut given that inflation still remains high and above the Fed’s 2% target rate, but the odds appear to be tipping in favor of a rate cut.
Manufacturing Sector Slows Amid Increased Costs for Materials from Tariffs
Also in November, U.S. manufacturing activity slowed for the ninth consecutive month, according to the Institute for Supply Management. The ISM’s PMI report came in at 48.2, a decline from 48.7 in October. Any reading under 50 is a signal the manufacturing sector is contracting, not expanding. The November contraction was widespread and included the apparel, textiles, paper products, chemicals and transportation equipment industries. Manufacturers point to tariffs as the main factor causing the contraction. In many cases, it now more expensive for U.S. producers to source materials from abroad that are needed in their manufacturing processes. The ISM survey also found that manufacturers were holding back on hiring as they tried to manage the higher production input costs and slowdown in orders.
What It Means for Gold
Gold prices jumped following the news of the ADP jobs losses as it boosted expectations the Fed will cut rates at its December meeting. Lower rates are positive for non-interest bearing precious metals. Meanwhile, weakness in the manufacturing sector supports demand for gold as a safe-haven asset. Spot gold is trading just above $4,200 an ounce with bullish momentum growing. Prices are likely to remain range-bound into the Fed meeting, and a breakout above $4,373.20 would signal gold is extending into a new bullish phase, with a target at $5,000 in 2026.
Quiet markets like we are seeing today are ideal for orderly accumulation and fractional gold like 1/10 ounce American Gold Eagles, priced at $499.80 (market prices fluctuate) offer the same level of future upside as a 1 ounce gold coin. Act today with an increased allocation to physical gold and watch your wealth grow in all the tomorrows that follow.
The Story Behind the 1936-S Bay Bridge Silver Half Dollar
Posted on — Leave a commentThe 1936-S Bay Bridge Silver Half Dollar is one of the most beloved classic commemoratives in U.S. coinage. With its bold design, regional pride, and limited production, it captures a moment in California
history when the West was rising in national importance. More than just a collectible coin, it is a silver time capsule that celebrates one of the greatest engineering achievements of its age: the San Francisco–Oakland Bay Bridge. This is the story of how it came to be, why it became such a standout in the commemorative series, and what continues to draw collectors to it today.
Honoring a Modern Marvel
The early to mid-1930s saw a wave of commemorative coin programs, many tied to local celebrations and anniversaries. The completion of the Bay Bridge in 1936 was a perfect candidate for a coin issue. It had taken more than three years of round-the-clock labor to complete the massive structure connecting San Francisco and Oakland. At the time of its opening, it was one of the longest steel bridges in the world and a visible symbol of American optimism during the Great Depression.
To mark this achievement, Congress authorized a commemorative half dollar to be struck at the San Francisco Mint. The coins would be sold to the public at a small premium, with proceeds supporting civic celebrations around the new bridge. The result was the 1936-S Bay Bridge Silver Half Dollar, a coin as bold and striking as the bridge itself.
A Design That Captured the Spirit of California
One reason the Bay Bridge Half Dollar remains so popular is its stunning artwork. The designer, Jacques Schnier, was a San Francisco sculptor known for his modern style. He delivered a design that felt fresh and forward-leaning, breaking from the more classical motifs that had dominated commemorative coinage.
The obverse features a powerful California grizzly bear, standing tall with a quiet sense of strength. This was not simply a regional mascot. The bear symbolized resilience, independence, and the rugged identity of California. Collectors have long admired the depth, texture, and visual weight Schnier brought to the image.
The reverse is a beautifully balanced view of the Bay Bridge stretching across the bay, with Yerba Buena Island and the San Francisco skyline rising in the background. The architectural detail is crisp, and the scene conveys the blend of artistry and engineering that defined the era. Few commemorative coins of the 1930s feel as modern or as cleanly executed as this one.
Mintage, Distribution, and Collector Appeal
The 1936-S Bay Bridge Half Dollar was struck exclusively at the San Francisco Mint, with a mintage of 100,000 coins for distribution. Another 2,000 pieces were produced for assay purposes. While most sold quickly through local committees and distributors, a portion went unsold and were returned to the Mint for melting.
This combination of limited mintage, strong regional interest, and exceptional design gave the coin a strong foothold in the commemorative market. Unlike some other 1930s issues that struggled to find an audience, the Bay Bridge Half Dollar maintained steady demand. Today, collectors appreciate its bright luster, the bold bear motif, and the artistry of its engraving. High-grade examples, especially those with strong mint luster and clean surfaces, remain particularly desirable.
A Legacy That Endures
The Bay Bridge Silver Half Dollar stands as a testament to a defining moment in California history. It honors a landmark that reshaped the region’s transportation and economy. It showcases one of the most memorable bear designs in American numismatics. And it represents the spirit of innovation that marked the 1930s United States, even during challenging economic times.
For modern collectors, the 1936-S Bay Bridge Half Dollar offers the chance to hold a piece of that history in hand. It is a classic commemorative that continues to shine, bridging the past with the present and reminding us of the bold ambitions that helped shape the American West.
Retail Sales, ADP Report, Confidence Survey Reveals Economy Remains Sluggish
Posted on — Leave a commentGold climbed and stocks slumped as private ADP jobs report revealed accelerating job losses, a confidence survey showed a downturn in sentiment and new retail sales data disappointed. Gold hit a 10-day high following the news and stocks turned lower.
Digging Deeper into the Economic Outlook
Payroll processing firm ADP reported that job losses averaged 13,500 per week for the four weeks ending November 8, which pushed stocks lower as “risk-off” trading sentiment increased. The ADP report reveals bigger questions about how weak the U.S. labor market truly is.
Wall Street economists remain in catch up mode following the government shutdown on Oct. 1 that lasted to mid-November. Government statistics agencies are still compiling reports from several months ago, leaving investors and economists with an incomplete picture on the economy today.
Consumer Spending Grows, But Less Than Expected
Retail sales rose by 0.2% in September, the Commerce Department said. That fell short of Wall Street’s forecasts for a 0.3% rise. Americans pulled back on purchases in a number of categories that were affected by tariffs, including cars, electronics and clothing.
Also, the Conference Board just released its latest consumer confidence survey for November, which fell to 88.7 from 95.5 in October, again below consensus expectations for a 93.2 reading.
Another shutdown delayed report revealed that the producer price index showed goods and services moved higher in September. PPI rose 0.3% in September, following a 0.1% increase in August.
Putting It All Together
All in all, the new economic data reveals that heading into the holiday season, Americans see a job market losing steam, still-rising inflation, and falling consumer confidence, which is leading some people to rein in their spending.
Gold Is Rangebound in Pre-Holiday Trade
Since touching a record high above $4,300 an ounce in October, gold trade has turned consolidative and sideways. For the past two months, gold has traded in range between roughly $4,200 on the upside and $4,020/$4,000 on the downside. Dips have been short-lived as buyers entered the market to accumulate gold under the $4,020 level.
The long-term trend for gold points higher and the major fundamental drivers for uptrend remain intact. Central banks remain large buyers of physical gold, investors and funds are diversifying into precious metals to hedge against rising government debt levels, falling U.S. dollar values, still-high inflation and to protect portfolios against stock market volatility. Major Wall Street firms project a fresh climb to a new record high at $5,000 in 2026.
The Importance of Managing Risk In Your Portfolio
Given today’s heightened macroeconomic uncertainty, it’s time to consider an increase in allocation to physical gold and silver as a core portfolio risk-management tool. A higher strategic allocation to precious metals can help you preserve purchasing power, reduce portfolio volatility, and act as a vehicle to grow your wealth even when assets like stocks and bonds fall.
Beyond wealth preservation, the investment case for gold and silver extends to proven portfolio diversification benefits. Physical metals consistently deliver low correlation to major paper asset classes such as stocks and bonds. During market drawdowns triggered by geopolitical disruptions or stock market declines, gold in particular has historically demonstrated positive performance. Silver, with its hybrid industrial and monetary characteristics, offers both a defensive hedge and exposure to long-term manufacturing trends in renewable energy and electronics.
How to Safely Add Precious Metals to Your Portfolio
Consider increasing your allocation to gold and silver with physical bars and coins held with reputable custodians or in direct personal custody, rather than unbacked or highly leveraged paper substitutes.
How large should your precious metals allocation be? We can help tailor a position size appropriate for your personalized liquidity needs, risk tolerance, and existing exposure to real assets. If you have questions on how to best position your portfolio for safety and growth, please call Blanchard today. We stand ready to assist you in these uncertain times.
Jobs Data Puts December Rate Cut in Question: Gold Trades In Holding Pattern
Posted on — Leave a commentThe September jobs report, which arrived seven weeks late, due to the U.S. government shutdown revealed that 119,000 new jobs were created that month. That far outpaced expectations for a 50,000 job gain. The better-than-expected September jobs report called into question whether or not the Federal Reserve will pull the trigger on a third interest rate cut when it meets in December.
U.S. stocks initially gained on the news, but quickly reversed lower and wiped out earlier gains as concerns about an AI bubble continue to press equities lower. Gold largely traded sideways and is consolidating in a sideways holding pattern between $4,000 and $4,212 an ounce.
The long-term trend for gold points higher and the precious metal has gained over 50% since the start of the year. The neutral sideways phase is a temporary holding pattern as the metal takes a much needed breather.
While the fresh jobs data is a look in the economy’s rearview mirror back to September, it is the last major piece of labor market data the Fed officials will see before they meet next on December 9-10.
The stronger than expected payrolls number could provide cover for those Fed officials who want to take a break from easing and hold interest rates steady at the December gathering. However, Fed officials appear deeply divided over the path of monetary policy, according to the minutes from the latest meeting.
“In discussing the near-term course of monetary policy, participants expressed strongly differing views about what policy decision would most likely be appropriate at the Committee’s December meeting,” the minutes read.
What does this mean for gold? What does this mean for stocks?
Gold benefits from Fed interest rate cuts, so a pause in the Fed’s recent rate cuts would be a neutral signal for the precious metal. For stocks, it is a different picture. The stock market has in part been climbing amid expectations of a series of rate cuts this year and if the Fed fails to deliver, it will create additional downside momentum for an already fragile stock market.
For investors this is a pivotal moment.
The stock market is getting hammered as the S&P 500 sank below its 50-day moving average for the first time in 138 days. As stocks slid lower, bitcoin also fell sharply trading below $87,000. All in all, it was an ugly day on Wall Street for stock investors following the jobs report and the near-term trend for stocks points down. The stock market may well be on the precipice of a larger and sustained collapse that has been months in the making driven by a few large-cap technology stocks.
Now’s your chance to take action to protect your portfolio.
If you’ve been sitting on the sidelines, take a look at your portfolio today. We’ve seen many investors rebalancing their portfolios in recent weeks, cashing in on overstretched stock positions and funneling those assets into the safety of gold and silver.
Wall Street traders like to say: stocks take the stairs higher and the elevator down. Use today’s sideways consolidation in gold to increase your exposure to precious metals. With forecasts at $5,000 for gold in 2026–the gold trade is a one-way trade higher. Over the next few weeks or months, stocks could be a one-way trade lower.
When stocks crash, precious metals climb. Take advantage of this brief moment in time before the stock market is down 20% or 30% and make your portfolio shift today. Do you have questions or want to talk through what investment moves are best for you and your unique financial situation? Blanchard stands ready to assist–call us today!
The Story Behind the 1851 $50 Humbert 880 Reeded Edge
Posted on — Leave a commentFew coins capture the raw urgency, ambition, and chaos of the American Gold Rush the way the 1851 $50 Humbert 880 Reeded Edge does. Today, this octagonal “fifty-dollar slug” stands among the most legendary issues in American numismatics, but its story begins in the dusty, makeshift streets of
early San Francisco—where gold was plentiful, coinage was scarce, and commerce was held together with luck, grit, and a handshake.
The California Gold Rush and a Desperate Need for Coinage
When waves of prospectors began pouring into California in 1848 and 1849, they brought a hunger for wealth but very little in the way of practical currency. Gold dust was everywhere, but federal mint strikes were thousands of miles away. Business owners quickly discovered that gold dust was nearly impossible to standardize. One man’s teaspoon of dust never quite matched another’s. Even when weighed, purity varied wildly.
Merchants needed something stable—something trustworthy—to conduct daily commerce. That gap between chaotic gold dust and trustworthy hard money created a unique opportunity, and one man in particular stepped forward to meet it: Augustus Humbert.
Augustus Humbert and the U.S. Assay Office in San Francisco
Augustus Humbert was a New York watchmaker who gained a reputation for precision and integrity. His skill earned the attention of federal officials in Washington, and in 1851 he was appointed United States Assayer for California. The newly established U.S. Assay Office in San Francisco opened its doors with a single purpose—convert raw California gold into a reliable, federally sanctioned medium of exchange.
Enter the massive, unmistakable gold “slugs.” These fifty-dollar pieces were unlike anything the official U.S. Mint had ever produced. Octagonal in shape, stamped with Humbert’s name and the weight and fineness of their gold, they were large enough to be noticed across a saloon and heavy enough to anchor a ledger. The most famous of these is the 1851 $50 Humbert 880 Reeded Edge.
The 880 Thous. Fineness and the Reeded Edge
The inscription “880 THOUS.” refers to the coin’s 88 percent gold purity—slightly lower than the later standard of .900 but consistent with the natural composition of much California placer gold. What made these slugs invaluable was not a perfect fineness standard but consistency. An 880-fine Humbert piece carried the same trust as a banknote in the East. Business owners accepted them readily because they finally had a unit of value that was predictable and federally approved.
The Reeded Edge variety, in particular, represents a transitional and historically fascinating moment. While many Humbert slugs bore a lettered edge, the reeded version signaled a push toward more standardized production. Reeded edges were harder to tamper with and showed a more refined level of craftsmanship—an early hint that California coinage was inching its way toward formal U.S. Mint operations.
A Coin Born of Necessity—and Carried Through Adventure
Holding an 1851 Humbert slug today feels like holding a piece of frontier life. These coins traveled in saddlebags, strongboxes, coat pockets, and bank vaults across the West. Miners bought tools with them. Merchants used them to settle large accounts. Some were carried through treacherous overland journeys. Others sat behind saloon bars as payment for debts men promised to settle “come spring.”
One of the great ironies is that despite their massive size and weight—over two and a half ounces—these coins circulated actively. In a world where every gold shipment risked robbery, storm, or loss at sea, a large denomination piece was practical. A man could settle a major transaction without carrying a bag of dust or a pouch of smaller coins.
The Decline of the Humbert Slug
When the San Francisco Mint opened in 1854, the era of private and semi-official Gold Rush coinage began to fade. Standardized federal coinage replaced Humbert’s hefty slugs, and over time many were melted for their gold. Survivors became numismatic treasures, their history preserved not by circulation but by collectors who recognized their significance.
Today, the 1851 $50 Humbert 880 Reeded Edge is a centerpiece rarity—admired for its size, its artistry, and its unmistakable place in American history. It represents a moment when California needed money fast, and one man’s precision and leadership helped stabilize an entire regional economy.
Why Collectors Still Pursue This Icon
For numismatists, the 1851 Humbert slug offers a blend of rarity, origin story, and sheer presence. Its octagonal shape, bold inscriptions, and official U.S. Assay Office pedigree make it one of the most visually compelling coins ever produced on American soil. Combined with low survival rates and strong demand among Gold Rush collectors, it stands as a bucket-list piece—whether found in high grade or in a well-worn example that clearly lived a full life on the western frontier.
Final Thoughts
The 1851 $50 Humbert 880 Reeded Edge is more than a coin. It is a relic of human ambition—the kind that sends people into mountains, rivers, and unknown territory chasing the promise of a better life. It is a reminder of how quickly a nation can grow, improvise, and adapt. And for collectors today, it remains one of the most compelling artifacts of the American West ever struck in gold.
Four Countries Dominate Investment Demand for Silver Bars and Coins
Posted on — Leave a comment2025 has been a bellwether year for precious metals and not just gold. As investors around the world turn to the safety of precious metals, demand for
silver bars and coins has shot sharply higher. Notably, investment demand from the United States, India, Germany, and Australia accounts for nearly 80% of global demand for silver bars and coins, according to a new report from precious metals consultancy Metals Focus.
Why are investors turning to silver bullion?
Rising government debt, heightened global political tensions and historical evidence that shows silver is undervalued compared to gold has increased investor appetite for silver in 2025.
This year’s silver gains have been eye-catching. Spot silver hit a new record high at $54.56 an ounce in October and has soared 65% since the start of 2025. Record gold prices have also boosted silver’s appeal as the white metal delivers many of the same safe-haven properties, but at a less expensive price point.
Wondering what lies ahead? Silver is rising in a long-term historic uptrend, and the metal is still climbing.
In October, Bank of America raised its 2026 silver forecast to $65. This year, the global silver supply forecast is expected to come up short for the fifth year in a row. Big picture, a persistent supply/demand imbalance, driven by strong investment and industrial demand keeps Wall Street focused on higher levels for silver in the years ahead.
Digging deeper into the four major countries driving gold demand, investors in the United States lead the pack, according to the Silver Institute.
United States: The scale of U.S. buying has been astounding, with a combined total of 1.5 billion ounces (Boz) of silver purchased by retail investors between 2010 and 2024.
India: India is the second-largest physical silver investment market in the world, but has occasionally eclipsed the U.S. There is a long-standing tradition for India’s citizens to own physical silver, typically in the form of silver bars, which in 2024 comprised 70% of total retail demand.
Germany: Germany has long held stood as the world’s third-largest market for silver bar and coin investment. Germans have a particular affinity to own silver bullion coins, which accounts for roughly 80% of total silver demand there.
Australia: In recent years Australia emerged as the world’s fourth-largest physical silver market. While in 2019, Australian silver coin and bar demand stood at just under 3.5 million ounces, by 2022, that number surged to a record high of 20.7 Moz.
Precious metals investors have witnessed a historic run in 2025. The uptrend is still strong and the factors which created robust demand for gold and silver remain in place. Looking into 2026, forecasts stand at $5,000 for gold and $65 for silver. For many precious metals investors today, the question is not when to get into the market, but how much should you buy?
No matter whether you prefer silver bars or silver coins, Blanchard has a large selection of bullion inventory available to ship today. Explore your options. If you are unsure about how much gold or silver is optimal for your portfolio, call Blanchard today. We stand ready to assist.
