Market Recap 5/13/11


Precious metals had another topsy-turvy week, with gains and losses every day this week following last week’s sell offs. The U.S. Dollar was down Monday after a 3% rally last week with rumors that Greece might leave the European Union. These factors contributed to the lower metal prices last week; however, David Morgan, founder of Silver-investor.com, is still bullish for the metals. “The fundamental fact remains that you cannot print wealth. As long as Federal Reserve Chairman Ben Bernanke and other central bankers in the world try to print wealth you’re going to have more and more upside for the metals,” says Morgan.

Paul Mladjenovic, author of “Precious Metals Investing for Dummies,” said Gold looks “very strong” and any pullback will be minor as the market expects some dollar strength and some euro weakness. In fact, the typical reasons for precious metals to be a safe haven for investors – inflation fears, a weak dollar, and geopolitical fears are still prevalent in the marketplace.

Stocks traded lower Friday primarily driven by concerns over inflation and a strengthening dollar. “Core inflation is beginning to accelerate. Bernanke may be on the wrong side of this while some of the regional Fed presidents may be closer to the mark,” said Michael Strauss chief economist and chief investment strategist at Commonfund.

Charles de Vaulux, mutual fund manager, suggests that you should own Gold bullion as a part of your diverse portfolio of assets. “We control risk by owning Gold,” de Vaulx said. “As long as the policymakers are being irresponsible, it’s good to own some Gold, especially if the dollar keeps falling.” U.S. bonds, long thought of as a rock-solid investment, have come under increased scrutiny lately with the potential for high inflation and the debt ceiling looming, raising the possibility of a default on U.S. bonds. De Vaux is currently shorting U.S. government debt.

Gold:
Spot Gold prices opened this week at $1,500.70. The high during the week was on Wednesday, May 11th, at $1,526.80, while the low for the week occurred on Thursday, May 12th, at $1,477.60. Gold ended the week down $1.00 at $1,499.70. 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 $35.85. Silver reached a high of $39.47 on Wednesday, May 11th, while this week’s low for Silver occurred on Thursday, May 12th, at $32.30. Silver ended the week down $0.26 at $35.59. 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 $1,791.60 and ended the week down $23.10 at $1,768.50. 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 $717.20 and ended the week down $5.30 at $711.90. Palladium investors preferred 1 oz. Pamp Suisse Palladium Bars and Palladium Canadian Maple Leafs this week at APMEX.com.

Featured Bullion Product:
Beginning on January 3, 2011, the 2011 Gold American Eagle Coins became available to each of the United States Mint’s authorized purchasers. An official Gold bullion coin of the United States, the Gold American Eagle Coin has become one of the most popular coins on the world market. Since its release by the United States Mint in 1986, the Gold Eagle has featured the same basic design. Displaying a design created by Augustus Saint Gaudens, the obverse of the Gold American Eagle depicts the figure of Lady Liberty, who holds a torch in her right hand and an olive branch in her left hand. In the background is a rendition of the Capitol building in Washington, D.C. The reverse of the Gold Eagle illustrates a nest of American Bald Eagles, a symbol of American nationalism and pride.

Available in 1 oz., 1/2 oz., 1/4 oz., and 1/10 oz. denominations, the 2011 Gold American Eagle appeals to both collectors and investors alike. In addition to its beautiful design, the Gold Eagle is also a Gold gem for its value. Containing 91.67% pure Gold, the 22-karat Gold American Eagle Coins have a market value that usually equals the market value of their Gold content. Moreover, the 2011 Gold American Eagles are eligible for precious metals IRA accounts and can potentially enhance any coin collection or investment portfolio.

Having gained international popularity since its debut, the Gold American Eagle is a coin that will most likely continue to attract attention from coin collectors all over the world.

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