Weekly Gold and Silver Market Recap for May 11, 2012


by John Foster. Email John.

Silver Lining in Gold’s Fall:

While gold finished this week down nearly 2% there looks to be some Good news for Gold pricesas a survey conducted by Bloomberg showed that 14 of 32 analysts anticipate prices to gain next week. The Gold price is currently being affected by the political uproar in Europe, which is pushing the euro down, and positive American economic news, which is strengthening the doll

Silver bullion bar 1000oz top view

Silver bullion bar 1000oz top view (Photo credit: Wikipedia)

ar. “When the market gets very nervous, then they buy dollars, and Gold finds it difficult to rally,” said Jesper Dannesboe, an analyst at Societe Generale SA in London. “Given what’s going on in the markets at the moment, any rally will probably just be a bounce before another setback.”  One hedge fund manager is predicting tough times ahead for stocks, which could be positive for gold and silver, considering the negative correlation the metals historically hold to stocks. Referring to the Federal Reserve’s “Operation Twist,” he says that “the Fed has effectively found a way to keep long-term interest rates low … and cleverly engineered another bull rally (for stocks). … The U.S.A. will have to start dealing with issues that some market participants refer to as Taxmageddon.” “Taxmageddon” is the term being given to the coming months before the U.S.A. presidential election, when many decisions on tax breaks are due.

Risky Morgan?:

NEW YORK, NY - MAY 03:  JPMorgan Chase & Co. c...

NEW YORK, NY – MAY 03: JPMorgan Chase & Co. chairman and CEO Jamie Dimon looks on while speaking at Simon Graduate School of Business at the University of Rochester’s New York City Conference on May 3, 2012 in New York City. Dimon spoke about the state of the economy and regulations in the banking industry. (Image credit: Getty Images via @daylife)

In a financially shocking bit of news JPMorgan has reported a potential $2 billion loss from a failed hedging strategy. The dollar amount is not the shocking part; more shocking are the parties involved: Chief Executive Jamie Dimon and the normally risk-averse financial institution JPMorgan. Nancy Bush said, “Jamie has always styled himself as one of the kings of Wall Street. I don’t know how this went so bad so quickly with his knowledge and aversion to risk.” Analyst Todd Hagerman said, “It’s a pretty stunning admissionfor a company that prides itself on its risk management systems and the strength of its balance sheet. The timing couldn’t be worse for the industry. It will have ramifications across the broker-dealer community.” Dimon said, “It could cost us as much as $1 billion or more. It is risky, and it will be for a couple quarters.” He

added, “This puts egg on our face.” JPMorgan has been viewed as a very safe financial institution, considering it was one of the only companies to not post a loss from the 2008 financial collapse.

Troubling Europe:

Greece is looking at yet another election in the next few weeks as governmental consensus is not taking place. The head of Greece’s Radical Left Coalition, Alexi Tsipras, was not able to form a unity government this week, opening the door for the new elections. The issue is not about not getting a unity government formed, it’s the fact that Tsipras is viewed as the next prime minister, so his beliefs are significant. In Greece, the austerity

Alexis Tsipras in a press conference in Komoti...

Alexis Tsipras in a press conference in Komotini. Ελληνικά: Συνέντευξη Τύπου του Αλέξη Τσίπρα στο ξενοδοχείο Ξενία στα πλαίσια της επίσκεψης του στην Κομοτηνή 13.11.2008 (Photo credit: Wikipedia)

measures are known as “the memorandum” which Tsipras opposes. He expressed his views recently when he said, “I fully disagree with what is at heart of the memorandum. … Further austerity will make us a Third World country in the EU.”  Spanish banks are taking a cue from Ireland as concerns are mounting that bank losses are not being accounted for properly. Spain is trying to avoid outside assistance, in the form of a bailout, but many analysts have concerns that Spain will not be able to avoid a bailout. London-based analyst Patrick Lee said, “How can you only talk about one type of real estate lending when more and more loans are going bad everywhere in the economy? Ireland managed to turn its situation around after recognizing losses much more aggressively and thus needed a bailout. I don’t see how Spain can do it without outside support.”

Green Gold?:

Many of us do not realize the amount of Precious Metals we are holding in the palms of our hands on a day to day basis with our electronic devices. Todd Willis at Redlan Metals, a Precious Metals refinery, shared how recycling your old cell phone, air cards, cell phone chargers, SIM cards, and lithium ion batteries is an environmentally safe and sound way to dispose of unused items. Willis said, “We look for Gold, Silver, Palladium and copper in cell phones scraps. … We return those metals back to the commodity markets. The key is you have to have enough volume in order for it to be economically feasible to go through the recovery process.”

Austrian Silver Philharmonics

One of the most beautiful Silver coins on the market, the Austrian Silver Philharmonic attracts attention from collectors and investors around the world. Minted by the Austrian Mint in Vienna, the Silver Philharmonic coins are .999-pure Silver and were the first Silver bullion coins denominated in euros. While the Austrian Silver Philharmonics are Silver bullion coins that can serve as investment opportunities, they are also striking additions to any coin collection.

The Silver Philharmonic coin features the same design as the Austrian Gold Vienna Philharmonic, Europe’s leading bullion coin. Like the Gold Philharmonic, the Silver Philharmonic pays tribute to one of Vienna’s most iconic symbols: the Vienna Philharmonic Orchestra. The Vienna Philharmonic Orchestra is considered one of the finest orchestras in the world. In honor of this prestigious orchestra, the Philharmonic coin’s design features a theme based on musical heritage. The coin’s obverse, or front, of the Silver Philharmonic coin displays the Great Pipe Organ in Vienna’s Golden Hall, where the orchestra performs. The reverse, or back, depicts a medley of selected instruments from the world-famous orchestra. Through these designs, the Silver Philharmonic allows you to commemorate the magic and music of Vienna.

If you wish to buy any of the stunning Austrian Silver Philharmonic coins, shop APMEX’s wide selection of Silver Philharmonics. APMEX makes it easy to buy Silver by offering competitive Silver prices on all Silver products.

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