Market Recap 12/10/10


This week was a time where recent news like the Fed QE2 , the European debt crisis, tax cuts, Chinese monetary policy and the US dollar are all nearly digested and losing their steam in the minds of investors. As the news cycles slow down, markets typically see a dip and then sideways trading until the next news event. Since precious metal prices react favorably to unexpected events that cause negative consequences, it is hard to predict the next big move.

Supply is flat at best, as mines struggle with rising costs and labor issues. Central banks who traditionally are net sellers of Gold, thus increasing supply, are now net buyers, so they compete for supply and raise demand. Even if China’s demand for iron ore goes down, if their construction industry slides, do not underestimate their appetite for Gold. The amount of Gold they hold in their foreign reserves is less than 3% and they have stated their intentions to bring this up to the level of Germany, who is over 50%.

Gold:
Spot Gold prices opened this week at $1,416.00. The high during the week was on Tuesday, December 7th, at $1,432.50, while the low for the week occurred on Wednesday, December 8th, at $1,372.10. Gold ended the week down $30.50 at $1,385.50. This week, the most popular Gold bullion products were 2010 1 oz. Gold American Eagles, 1 oz. Gold Maple Leafs and 1 gram Sunshine Minting Gold Bars.

Silver:
Spot Silver prices opened this week at $29.43. Silver reached a high of $30.74 on Tuesday, December 7th, while this week’s low for Silver occurred on Wednesday, December 8th, at $28.01. Silver ended the week down $0.73 at $28.70. The most popular Silver products on APMEX.com this week were 2010 Silver American Eagles, 1 oz. Silver Buffalo Rounds and 1 oz. APMEX Silver Rounds.

Platinum:
Spot Platinum prices opened this week at $1,732.30 and ended the week down $48.30 at $1,684.00. 1 oz. Pamp Suisse Platinum Bars, 1 oz. Platinum American Eagles and 1/2 oz. Platinum American Eagles continue their popularity with investors.

Palladium:
Spot Palladium prices opened this week at $769.80 and ended the week down $36.50 at $733.30. Palladium investors preferred 1 oz. Pamp Suisse Palladium Bars and Palladium Canadian Maple Leafs this week at APMEX.com.

Featured Bullion Product:
Each week, APMEX features a different bullion product for the benefit of our readers. This week, we are featuring Silver Mexican Libertads.

Silver Mexican Libertads are 1 ounce bullion coins minted in .999 fine Silver and are some of the most beautiful Silver coins in the world. The obverse of the Silver Mexican Libertad features the National Emblem of Mexico surrounded by the legend “Estados Unidos Mexicanos.” Outlining this inscription, along the contour of the frame of the coin is the reproduction of various emblems used throughout Mexico’s rich cultural history.

Silver Libertads are available in 1, 2 and 5 Troy Ounce coins and have been minted every year since 1982. They are also minted in a proof (collector’s) version.

 

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