Weekly Recap 7.8.11

Debt Ceiling, Default, Aug. 2, Gold, Gold Prices, Buy Gold, Precious Metals

Some big gains for Gold and Silver occurred this week even though this trading week was abbreviated.  Gold spot prices went up $62.00 per ounce for a gain of 4%; Silver spot prices ended up $3.00 per ounce increase for a gain of 8%.

Sovereign debt worries around the globe continue to be the dominant news story this week.  Tuesday brought a downgrade of Portugal’s debt to a junk rating by Moody’s.  Moody’s was the first ratings agency to move Portugal’s debt to less than investment grade. Reflecting the sentiment that the euro zone is nowhere near the end of the crisis, Robert Tipp of Prudential Fixed Income said, “[Portugal’s] ratings downgrade reminds markets that it’s not just Greece with debt issues. Once Greece gets wrapped up, you move on to the next country.  …[T]hat will be the shape of things to come over the next year or two…”  The value of the euro tumbled on the news of the downgrade.

President Obama joined with House Speaker John Boehner, insisting that negotiators resist the temptation to “kick the can down the road” and settle for a makeshift, short-term solution to stave off a first-ever U.S. default on August 2. The administration and congressional leaders are going to take this opportunity to focus on a long-term budget plan to raise the debt limit.

The jobs picture looked positive all week, up until Friday.  The ADP employment report was released on Thursday, and indicated the private sector created 157,000 new jobs in the month of June.  This was a big surprise to the upside, as most economists predicted a more moderate number.  However, the nonfarm payroll report (which include private sector jobs, as well as government jobs), released on Friday, indicated that the net number of jobs created in June was only 18,000.  The public sector lost 39,000 jobs in June, indicating that government spending cuts are having a sizable impact on the employment picture.

PRECIOUS METAL SPOT PRICES

Gold:
Spot Gold prices opened this week at $1,483.60. The high during the week was on Friday, July 8th at $1,546.00, while the low for the week occurred on Tuesday, July 5th at $1,486.20. Gold ended the week up $62.00 at $1,545.60. 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 $33.75. Silver reached a high of $36.90 on Friday, July 8th ,  while this week’s low for Silver occurred on Tuesday, July 5th $33.80. Silver ended the week up $3.00 at $36.75. 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 $1717.90 and ended the week up $21.30 at $1,739.20. 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 $762.00 and ended the week up $19.90 at $781.90. Palladium investors preferred 1 oz. Pamp Suisse Palladium Bars and Palladium Canadian Maple Leafs this week at APMEX.com.

FEATURED PRODUCT OF THE WEEK

   Gold  1 oz. Chinese Pandas

Gold coin, buy gold, gold prices, gold, Chinese pandas, Gold pandas

The 1 ounce Gold Chinese Panda coin is the gem of the Chinese bullion program.  The Gold Chinese Panda has been minted since 1982 and is considered one of the world’s most beautiful bullion coins.  These coins may bear (no pun intended) a mintmark of S or Y.  The S mintmark designates the coin was minted at the Shanghai Mint, while a Y mark denotes Shenyang as the coin’s origin.  In an effort to maintain public interest in the Pandas, the Chinese change the obverse design each year (excluding 2002).  Fortunately for the artists and customers alike, the Panda is a majestic and easily identifiable creature.

As worldwide demand for the Gold Panda grows, counterfeiting has become an issue.  Interested investors should always purchase Chinese Gold Pandas from a reputable dealer (like APMEX) to ensure quality and authenticity.

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