Market recap 4/15/11


This week was one of significant gains for both Gold and Silver prices. However, on Monday it was only Silver going up as Gold retreated on the news that a budget deal had been struck and that Libyan President Gaddafi was going to accept a peace plan brokered by the African Union. Of course, President Gaddafi made it clear he would not step down, which killed this proposal by the next day.

On Tuesday, Japan raised its nuclear crisis to the highest possible level, which is level seven. This puts this radioactive disaster on par with what occurred in Chernobyl back in 1986. The Japanese government, already under scrutiny for what appears to be a campaign of miscommunication tried to make the world feel better by letting us know, that there has been no real change, it has been level 7 the whole time. The government further states that although there is radioactive contamination in the air, water, soil, fish and vegetables, there are no immediate health risks. Comforting indeed!

Wednesday, Gold and Silver began to drift up as President Obama came out with his budget-cutting plan that chops $4 trillion off in the next 12 years. Apparently, many investors felt the need for a safe haven after seeing the details (or lack thereof). An interesting article written by Julian Phillips gave his view on why Silver has been rising faster than Gold. In a nutshell, Gold has been seen as an investment metal by high net worth individuals, central banks and institutions for a very long time. Silver did not take on this aspect until 2009. As Silver becomes the poor man’s Gold and as Silver gets the attention of high net worth individuals and institutions, it is starting to catch up in appeal.

Thursday’s jobs report was an unexpected negative surprise. New jobless claims rose last week rising once again above the 400,000 level. Economist polled by Reuters projected claims to fall to 380,000. The four week moving average, which is considered the best measurement, went up 5,500 to 395,750. Inflation fears grow as US core prices rose faster than projected in March, and the increase from one year ago was the largest since August of 2009. By the end of the day, Gold advanced more than 1% as it nears record highs. Fear of inflation, a weakening US dollar and more problems in Europe continue to drive investors to Gold (and perhaps Silver, which established a31-year high today.)

Friday’s news was that in the US, consumer prices rose 0.5% in March, which is 6% annualized. Also, a separate report shows that real average hourly earnings of US workers fell by .6% in March, and have declined 1.0% in the past 12 months. On the European front, Moody’s has again cut Ireland’s debt rating, which puts it on the verge of becoming junk status. Moody’s is keeping their view of this situation negative, thus pushing the Euro lower and putting added pressure on the Euro Zone’s weaker countries.

Gold:
Spot Gold prices opened this week at $1,476.40. The high during the week was on Friday, April 15th, at $1,489.80, while the low for the week occurred on Tuesday, April 12th, at $1,445.00. Gold ended the week up $11.70 at $1,488.10. This week, the most popular Gold bullion products were 2011 Gold American Eagles, 1 oz. Pamp Suisse Gold Bars, and 2011 1 oz. Gold Maple Leafs.

Silver:
Spot Silver prices opened this week at $41.00. Silver reached a high of $43.12 on Friday, April 15th, while this week’s low for Silver occurred on Tuesday, April 12th, at $39.71. Silver ended the week up $2.12 at $43.12. The most popular Silver products on APMEX.com this week were 2011 Silver American Eagles, 2011 Silver Maple Leafs, 1 oz. Silver Buffalo Rounds and 10 oz. APMEX Silver Bars.

Platinum:
Spot Platinum prices opened this week at $1,816.50 and ended the week down $22.50 at $1,794.00. Popular Platinum products this week included, 1 oz. Platinum Bars, 1/10 oz. Platinum American Eagles, and 1 oz. Platinum American Eagles.

Palladium:
Spot Palladium prices opened this week at $769.50 and ended the week up $1.50 at $771.00. 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 will review a different bullion product for the benefit of our readers. This week, we will review the 2011 1 oz. Platinum Australian Platypus.

On March 1, 2011, the Perth Mint in Australia unveiled a new Platinum investment coin: the Australian Platinum Platypus coin. The Australian Platinum Platypus coin is the latest addition to the Perth Mint’s Australian Bullion Coin Program. Until the release of the Platinum Platypus coin, the Perth Mint had not minted a Platinum investment coin since the Australian Platinum Koala coin. With the discontinuation of the Platinum Koala in 2000, the Platypus coin will pick up where the Koala left off in the Perth Mint’s series of investment coins.

Legal Australian tender under the Australian Currency Act of 1965, the Australian Platinum Platypus is struck from one ounce of 99.95% pure Platinum and has a face value of 100 Australian Dollars. For 2011, the Platinum Platypus coins have a limited mintage of 30,000 and will continue to have the same limited mintage for future years of issue.

Released by the Perth Mint, a world leader in the production of precious metals products, the Platinum Platypus coin features a captivating design. The obverse of the Australian Platinum Platypus coin depicts an effigy of Queen Elizabeth II designed by Ian Rank-Broadley. Additionally, the reverse features one of the most unique creatures inhabiting the Australian Continent: the Platypus. Showcasing this interesting member of the animal kingdom, the Platinum Platypus coin celebrates the wonder of Australian wildlife. Illustrated in its underwater home, this semi-aquatic mammal comes to life on the coin. Created by Perth Mint designer Natasha Muhl, the image of the Platypus gives the newly-released Platinum coin an appeal that is sure to attract collectors and investors all over the world.

The Australian Platinum Platypus coins are a great way to acquire and invest in Platinum. To add these beautiful coins to your coin collection or investment portfolio, shop APMEX’s selection of Australian Platinum Platypus coins. APMEX makes it easy to buy Platinum by offering competitive Platinum prices on all Platinum coins.

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