1.27.12 Weekly Recap

gold bars, gold coins, APMEX, APMEX gold, gold price, gold prices, gold rate, gold rates, online gold dealer

photo credit: Reuters/ Mike Segar

Gold crossed over the $1700 mark today on news of more stimulus measures by the Federal Reserve.  This news pushed the dollar down; Gold played its usual inverse position by jumping up several days in a row.

Precious metals started the week with a climb that was based on European news.  Negotiations between Greece and private debt holders are still under way. Sources close to the situation report a deal is close and private bondholders stand to take a loss of between 65 to 70 percent.

The Federal Reserve officially announced that the interest rates will not be raised until at least 2014.  The Fed believes that the unemployment rate still needs to be controlled. It anticipates that inflation will remain consistent with firm prices. The Federal Reserve’s actions indicate that they are concerned about a struggling economy, and unfortunately, this depresses the value of the dollar which had been rising compared to the euro. Federal Reserve observers are split on whether there will be another round of quantitative easing. According to the CNBC survey in January, about half of the respondents believe there will be a QE3, while 44 percent say no. These same respondents are optimistic on the economy, as long as the European crisis does not turn for the worse and create a significant global event.

The International Monetary Fund cut its global forecast of 2012 growth from 4% to 3.3%, and already is dropping its projected growth forecast for 2013 from 4.5% to 3.9%. Those forecasts are still not set; they are dependent on the efforts of the 17-country euro zone coming together to fight financial turmoil. The IMF has also called on the European Central Bank and other countries to support the euro zone with additional funding. In an update, the IMF said, “The near-term outlook has noticeably deteriorated … The global recovery is threatened by intensifying strains in the euro area and frailties elsewhere.”

WEEKLY SPOT PRICES

Gold: Spot Gold prices opened this week at $1,678.40. The high was on Friday, 27th at $1,738.20, while the low for the week occurred on Wednesday, Jan. 25th, $1,649.20. Gold ended the week up $60.50 at $1,738.90. This week, the most popular Gold bullion products were 2012 Gold American Eagles, 1 oz. Pamp Suisse Gold Bars, and 2012 1 oz. Gold Maple Leafs.

Silver: Spot Silver prices opened this week at $32.37. Silver reached a high of $33.94 on Friday, Jan. 27th, while this week’s low for Silver occurred on Wednesday, Jan. 25th at $31.53. Silver ended the week up $1.67 at $34.04 The most popular Silver products on APMEX.com this week were 2012 Silver American Eagles, 2012 Silver Maple Leafs, 1 oz. Silver Buffalo Rounds and 10 oz. APMEX Silver Bars.

Platinum: Spot Platinum prices opened this week at $1,565.00 and ended the week up $60.80 at $1625.80. 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 $687.80 and ended the week up $3.60 at $691.40. Palladium investors preferred 1 oz. Pamp Suisse Palladium Bars and Palladium Canadian Maple Leafs this week at APMEX.com.

Buy Silver kookaburra, buy silver, silver prices, silver price, silver rate, silver rates, Australia Silver, Perth Mint, APMEX

The unusual Silver bullion coin, the Silver Kookaburra, was released in 1990 by the Perth Mint of Australia. These beautiful coins celebrate the interesting bird native to Australia. Due to the variety of designs and privy marks available on the Silver Kookaburra coins, these are very popular among collectors who buy Silver coins.

Each 1 oz. Australian Silver Kookaburra contains .999-fine Silver and includes proof-like frosting in the central design. The obverse features a portrait of Her Majesty Queen Elizabeth II and lists the face value of the coin. The reverse displays the kookaburra. Every year, the coin has a slightly different design, which makes the Silver Kookaburra coins attractive to collectors. From 1990 through 2010, only 300,000 coins were minted each year; the 2011 and 2012 versions have mintages of just 500,000.

The Perth Mint originally began in 1899 as a branch of Britain’s Royal Mint in order to help supply the Gold sovereigns and half sovereigns, which were used as everyday circulating coins throughout the British Empire. In 1970, control of the mint passed from Britain to the Western Australian Government.

Order SILVER online today at APMEX.com!

Keep up with APMEX news throughout your week with subscriptions to the

APMEX Commentary via RSS feed and the APMEX Blog via RSS feed.

Share

1.13.12 Weekly Recap

gold bullion, gold coins, gold bars, buy gold, gold prices, gold price

Molten Gold Pour. photo: Flickr.com- Ashvin Mistry

Gold broke the recent trend of following the euro’s movements against the U.S. dollar, thanks to safe-haven investment demand that originated from the renewed jitters in Europe. Economic expectations are pessimistic with inflation rising internationally and economic growth declining globally. Investors are searching for a safe-haven investment, such as precious metals. According to Sundeep Sikka, with Money Manager (India) Inc., “The current global macroeconomic environment is very conducive for higher Gold prices.” Frank Holmes of U.S. Global Investors echoed this sentiment, saying, “People get so caught up with the next three minutes for Gold, and they should really be focused on the next three years. Does anyone really believe in the long-term strength of the U.S. dollar?” Holmes said the Gold price could double within the next five years. Investors are buying U.S. bullion coins at the fastest pace in over two years, and China is importing more Gold than ever.  One analyst noted, “The thing that’s caught people’s minds is the massive increase in Chinese buying.  Gold has demonstrated time and time again its ability to hold purchasing power.” A poll of 164 investors conducted by Nomura showed that 19.5% of them prefer to buy Gold and hold it until the end of the year. The poll compared Gold, bonds and stocks as investment choices.

The United States reached a “symbolic tipping point” as the country’s national debt surpassed $15.23 trillion, which is nearly equal to the value of its entire economy. Debt projections estimate that the U.S. economy grew to around $15.3 trillion in December, a figure the debt level is expected to surpass in January. Estimated retail sales figures for December were not quite to the levels anticipated, and a reported increase in jobless claims defied expectations. The U.S economy is facing several obstacles to successful growth, including a high unemployment rate, low demand in the housing market, and the European debt crisis. Economists will be evaluating their fourth quarter gross domestic product estimates after data was released Friday morning showing that U.S. exports declined in November, and imports rose.  The U.S. trade deficit is at its widest in six months, and is higher than the consensus expectations of economists.

The Federal Reserve’s modifications to its communication approach are drawing favorable reviews, with the Fed indicating that it will provide updates four times a year on its plans for short-term interest rates. According to the Fed, the U.S. economy is expanding at a modest pace. The main crux of further improvement continues to be a less-than-stellar jobs market, which has prevented incomes from rising. Residential real estate is still viewed as sluggish, but commercial property markets have shown improvement. Consumer confidence was generally “characterized as firmer than in recent reporting periods.” Transcripts released from the Federal Reserve policy meeting showed that as late as December 2006, top Fed officials including Chairman Ben Bernanke believed that the housing market was stabilizing and failed to anticipate the subsequent housing crash. Fed policymakers were seemingly oblivious to the threat housing represented to financial markets and the economy. The housing market’s crash resulted in a U.S. banking crisis and the biggest recession this country has seen since the Great Depression, as well as a corresponding increase in the price of Gold.

The German Chancellor Angela Merkel and French President Nicolas Sarkozy met to discuss Greece’s unresolved debt issues and to create a plan to ensure that the euro survives a potentially failing banking sector. The announcement was made that Greece would not receive its second bailout package (which would prevent a debt default in March) until Greece reaches an agreement with creditor banks on a bond swap. This week’s bond sale in Italy was not as successful as investors had anticipated. Even though Italy met the planned amount of 4.75 billion euros, hopes had been that the sale would bring in twice as much. The European Central Bank (ECB) decided to keep its key lending rate at 1%.  Afterwards, ECB President Mario Draghi warned of the “substantial” downside risks to the eurozone’s economic outlook, including increased debt market tensions, and stated that although there are “tentative signs of stabilization,” uncertainty remains “very high.” Fitch Ratings expressed that the ECB needs to do more to help Italy, the next big euro zone country seemingly in danger of default. The head of sovereign ratings for Fitch, David Riley, described a potential collapse of the euro as “cataclysmic.”  A French newspaper published a story that said that Standard & Poor’s would be downgrading France’s “AAA” credit rating by one notch.  Although the paper didn’t cite any sources and an official announcement wasn’t scheduled until late Friday afternoon, stocks experienced a triple-digit drop.  Gold and Silver saw drops as well, although they quickly climbed back up to the levels they were at before the news was released.  The expectation is that several other euro zone countries will be downgraded; this could force investment funds to sell bonds because they have a requirement that a set percentage of their bonds be AAA-rated. For those countries that would be affected, this could raise their borrowing costs. At a time when debt is rising and GDP (income) is declining, the last thing these countries need is for borrowing costs to rise.

Several hedge funds indicated that they are not willing to accept International Monetary Fund (IMF) proposals to bring Greek debt down to affordable levels by taking a voluntarily 50% loss on bond holdings. Instead, the hedge funds would prefer to either let Greece go bankrupt in the hopes that the hedge funds will be covered by the credit insurance they bought to protect against loss, or to get others involved and force the issue so that the funds will get paid in full. It’s a dangerous game being played by two parties with completely different interests. The hedge funds are focusing on what is best for their clients, and the IMF is trying to fix the entire sovereign debt problem in Europe. Greece is preparing to start final talks that could affect whether that country stays in the euro zone. In a move that will probably not sit well with German constituents already opposed to Germany’s role in the Greek bailout, German Chancellor Merkel announced that Germany would be willing to pay more funds to help conclude negotiations over the European Stability Mechanism (ESM) permanent bailout fund. The Greek bailout is viewed as the key solution before the European Union can work toward growth and job creation.

Tensions continued to grow in Iran, as one of the country’s nuclear scientists was killed by a car bomb on Wednesday. The bombing came as sanctions were being toughened on Iran because of its nuclear program. Although no one has claimed responsibility for the attack, Iran immediately blamed the U.S. and Israel.  U.S. Secretary of State Hillary Rodham Clinton has denied any American role in the slaying, and the U.S administration condemned the attack. However, Israeli officials, without admitting involvement, have hinted at covert campaigns against Iran, and Israel’s military chief of staff said that similar “unnatural” events could be expected this year if Iran continues along its path of nuclear development. The U.S. is looking for support from the Japanese government on imposing economic sanctions against Iran for its nuclear development program, as Japan is one of the top-three buyers of Iranian oil. President Barack Obama announced this week that the U.S. would freeze out financial institutions that deal with Iran’s central bank.

Recent data from China shows an increase in that country’s trade surplus for December.  Although expectations were met on export growth, import growth declined sharply. China is often seen as a major component of a global economic recovery. Barclays Capital Analysts said, “…the Chinese economy remains on track for a soft landing, with external weakness continuing to pose the biggest downside risk.” The U.S. and its allies are looking to impose stronger sanctions on Iran due to that nation’s nuclear ambitions, and China, as Iran’s top trade partner, seems to be caught in the middle. Hua Liming, former ambassador to Iran, said, “Iran will expect China to support its interests at the U.N. and other international circumstances, while the U.S. will exert tremendous pressure on China and use the Iran issue to judge if China is a ‘responsible’ major power.” Meanwhile, Chinese Gold imports from Hong Kong have climbed to a record high due to investment demand. China bought nearly 103,000 kilos from Hong Kong in November alone.

WEEKLY SPOT PRICES

Gold: Spot Gold prices opened this week at $1,609.20. The high was on Thursday, Jan. 12th at $1,622.90, while the low for the week occurred on Monday, Jan. 9th, $1,605.70. Gold ended the week up $32.10 at $1,641.30. 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 $28.25. Silver reached a high of $30.68 on Thursday, Jan. 12th, while this week’s low for Silver occurred on Monday, Jan. 9th at $28.55. Silver ended the week up $0.86 at $29.81 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 $1,428.40 and ended the week up $64.20 at $1,492.60. 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 $616.80 and ended the week up $22.20 at $639.00. Palladium investors preferred 1 oz. Pamp Suisse Palladium Bars and Palladium Canadian Maple Leafs this week at APMEX.com.

australian gold, lunar coins, gold lunar, buy lunar coins, year of the dragon, dragon gold, gold dragon, gold coins, buy gold coins

Australian Gold Lunar Coins

Designed by the Perth Mint in Australia, the Australian Gold Lunar coins are among some of the most beautiful coins in the world. Centered around the Chinese lunar calendar, the Australian Gold Lunar coins appeal to collectors and investors all over the world. Created because of popular demand from international investors and the success of the Australian Gold Lunar Series I coins, the Australian Gold Lunar Series II began in 2008 with the Year of the Mouse coins and will end with the Year of the Pig coins in 2019.

Struck from .9999 fine gold, Australian Gold Lunar coins are a great way to acquire and invest in precious metals. Legal Australian tender, most Gold Lunar coins are struck with a larger diameter. Inspired by China’s ancient lunar calendar, the Australian Gold Lunar Series coins feature the 12 animals central to the calendar’s stories. According to the lunar calendar, each of these 12 animals has a profound influence over those born under its year of “rule.”

Order GOLD online today at APMEX.com!

Keep up with APMEX news throughout your week with subscriptions to the

APMEX Commentary via RSS feed and the APMEX Blog via RSS feed.

Share

Weekly Recap 7.22.11

All eyes were focused this week on the European debt crisis and the U.S. debt ceiling discussions.  While there was serious progress made on one of these issues, it’s certainly debatable whether any real progress was made on the other.

Following a day-long meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy on Wednesday, the European Union leaders approved a bailout plan for Greece.  Details of the European Union’s bailout of Greece have emerged, and the package is being seen as stronger than expected.  Fitch Ratings said it will declare Greece to be in “restricted default,” however this was an expected consequence, according to EU leaders.  The deal is expected to stave off any contagion to other countries in the euro zone.

In the U.S., every time progress appeared to be made, it stopped dead in its tracks.  A major deficit plan was agreed upon by the bipartisan “Gang of Six” in the Senate. This deal would reduce federal deficits and is seen as a major step forward in debt ceiling negotiations. President Obama had publicly backed the plan, but he has since backed off.  House Republicans voted this week in favor of a campaign to reinforce their budget views and eliminate the need for compromise. The slogan for this campaign is “Cut, Cap and Balance.” A bill the Republicans are promoting this week would condition any increase in the debt limit on immediate spending cuts, set caps on future outlays and require a congressional passage of a balanced-budget amendment to the Constitution. Obama has specifically said that he will veto this bill if it passes the Senate.

President Obama is now said to be working on a major deficit-reduction package that includes $3 trillion in cuts while not including immediate revenue increases.  This is a sticking point to Democrats, who are said to be upset with the plan.  Obama would have to convince his fellow Democrats that this is the right deal, and he will need to do it quickly; the U.S. is now a mere 11 days away from defaulting on its debts.

Credit rating agencies were in the headlines frequently this week.  On top of the situation in Greece, the agencies came out in force to warn of the consequences of a U.S. default.  Standard & Poor’s reiterated its position Thursday that if the U.S. government misses its scheduled debt payments, it could cut the U.S. credit rating as early as August. There is some tie-in to both raising the debt ceiling and balancing the budget that S&P needs to see to avoid that type of action. The trickle-down effect could be catastrophic to a number of companies, including Fannie Mae and Freddie Mac, plus the sovereign debt rating and the insurance industry. Senator McConnell’s “back-up plan” that had been discussed as a fall-back option has just been discredited by Moody’s as not doing enough to balance the budget and would still put the U.S. on a path for a negative credit outlook.

Gold hit a record high Monday, and has spent most of the week around the $1,600 mark.  Silver hit over $40 for the first time since May, and remains in that range.

Weekly Precious Metal Spot Prices

Gold:
Spot Gold prices opened this week at $1,591.10. The all-time record high was on Tuesday, July, 19th at $1,610.70, while the low for the week occurred on Wednesday, July 20th at $1,581.10. Gold ended the week up $9.50 at $1,600.60. 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 $39.04. Silver reached a high of $40.88 on Tuesday, July 19th,  while this week’s low for Silver occurred on Wednesday, July 20th at $38.22. Silver ended the week up $1.12 at $40.16. 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 $1,758.00 and ended the week up $41.00 at $1,799.00. 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 $783.80 and ended the week up $24.10 at $807.90. Palladium investors preferred 1 oz. Pamp Suisse Palladium Bars and Palladium Canadian Maple Leafs this week at APMEX.com.

America the Beautiful 2-Coin Set

America the Beautiful, Silver, Glacier, Gettysburg

This two-coin 2011 America the Beautiful  set contains the five ounce Gettysburg National Military Park coin and the five ounce Glacier National Park coin.

The America the Beautiful Silver bullion program marks a significant change for the U.S. Mint’s coin offerings with the introduction of the larger format of five Troy ounces of Silver bullion. The entire 56-coin collection will display the beauty and diversity of America’s National Parks and sites. The coins will be issued over the course of 12 years. Designs and inscriptions are duplicates of the currently circulating commemorative quarters.

The Gettysburg National Military Park coin shows the Soldiers National Monument, which stands in the center of the Soldiers National Cemetery. This monument was constructed to honor the soldiers who fell at the Battle of Gettysburg in July of 1863. The statue now stands guard over the 6,000 American soldiers laid to rest at Gettysburg.

The Glacier National Park coin depicts the majestic glacier-carved Mount Reynolds. The mountain goat in the foreground reminds us of the diverse wildlife fostered within Glacier National Park. Glacier National Park obtained federal protected status on Feb. 22, 1897 and consists of 1,000,000 acres.

Keep up with APMEX news throughout the week by subscribing to the

 APMEX Commentaries via RSS feed.

Share

Weekly Recap 7.1.11

Gold, Silver, Buy Gold, Gold Prices, Silver Prices, APMEX

Happy Independence Day, America!

As U.S. Independence day approaches, the American debt crisis is becoming the main focus of the news. The attention on the European Union’s problem was lessened due to recent developments in Greece making a bailout seem more likely. Greece and the euro zone crisis has not resolved, but the shift in focus probably reflects a sentiment that the American debt crisis is more imminent. 

The week started with the bipartisan meetings on debt ceiling already fractured after republicans walked out on Friday, citing disagreement over tax increases.  On Monday, President Obama met with leaders from both parties individually in an attempt to restart talks.  The deadline to pass an agreement to lift the debt ceiling is August 2, at which time the U.S. would have a bond payment due without the means to pay it.  This would result in default, which most analysts agree, would push the U.S. back into a recession.  Standard & Poor’s, a ratings agency, said they will lower the rating on U.S. debt to “D,” the lowest possible, if an agreement to raise the debt ceiling isn’t reached in time.

Things didn’t look much better for the U.S. on Tuesday.  Republicans and Democrats became further entrenched in their respective camps.  Things were on the upswing for Greece however, as France and Germany pushed for a “Plan B” for Greek debt in an effort to prolong a default and allow themselves as long as possible to prepare for it.  A default still looks inevitable. Also, the IMF got a new chief, Christine Lagarde.  This announcement follows the arrest in New York of Dominique Strauss-Kahn, former head of the IMF.

Greece’s parliament passed new austerity measures on Wednesday. This move was demanded by EU members and by the IMF in exchange for another round of bailout aid.  Some experts remain skeptical of the final outcome, and hold the view that a default is still inevitable.

QE2 officially ended on Thursday.  The weekly jobless numbers were released and the report showed an extremely slight improvement in the unemployment situation; the data only showed a decrease of 1,000 unemployed workers.  Also on Thursday, protests sprang up in Egypt.  Thousands of people, mostly youths, took to the streets of Cairo, were frustrated at the slow pace of court cases against top officials of the previous regime.

The Institute for Supply Management released data on Friday showing an increase in manufacturing productions, easing fears of a double dip recession.  The stock market had a strong positive response with major indexes posting impressive three percent gains for the week.  The dollar also strengthened which brought the price of metals down somewhat.

Gold:
Spot Gold prices opened this week at $1,501.40. The high during the week was on Thursday, June 30th  at $1,514.80, while the low for the week occurred on Friday, July 1st at $1,478.30. Gold ended the week down $13.70 at $1,487.70. 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 $34.43. Silver reached a high of $35.16 on Thursday, June 30th while this week’s low for Silver occurred on Monday, June 27th at $33.38. Silver ended the week down $0.50 at $33.93. 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 $1,678.40 and ended the week up $42.10 at $1,720.50. 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 $734.30 and ended the week up $27.70 at $762.00. Palladium investors preferred 1 oz. Pamp Suisse Palladium Bars and Palladium Canadian Maple Leafs this week at APMEX.com.

 

Featured Product of the Week:    1 Ounce Silver Britannia Coins

Silver, Buy Silver, Silver Bullion, Silver Coins, Gold, Britannia

In 1997, the Royal Mint produced one-ounce Silver Britannia coins issued only as proofs with a mintage of 20,000. Created to appeal to both collectors and investors alike, the design of the Silver Britannia coin pays tribute to British nationalism and pride.

The obverse of the 1997 issue of the silver coin features the “Third Portrait” used on British decimal bullion coins dated from 1985 to 1997. In 1998, the obverse design of the Silver Britannia coin changed to depict the “Fourth Portrait,” a more mature likeness of Queen Elizabeth II. The reverse of the Silver Britannia coin illustrates the Standing Britannia, which appears in a horse-drawn chariot and resembles the Roman figure Boudica. The Standing Britannia image was originally engraved by G.W. De Saulles and used on the Gold Britannia coins for most of the issues following 1987. The Royal Mint seems to have settled on a pattern of alternating the classic Standing Britannia image and a special design on the reverse of the Silver bullion coins.

The Silver Britannia coins are also popular for their Silver value. With a face value of two pounds, the Silver bullion coins are .958 fine Silver, as opposed to the standard British sterling of .925 fine Silver. APMEX sells Silver Britannia coins in uncirculated and proof. APMEX makes it easy to buy the Silver Britannia coins of your choice by offering a wide selection of Silver Britannias and competitive Silver prices on all Silver bullion coins.

Share

Take the APMEX 5 Day Challenge!

Buy Gold, Gold Prices, Gold, Gold Demand, Buy Silver, Silver Prices, Silver, Precious Metals

We are a society of “movers” and we are constantly on the go.  We consume gallons of coffee and energy drinks to keep us alert and we eat power bars to keep us going. Who has time to search for news about the economy, the geopolitical scene, and the precious metals market? We want our information to be short, concise and right now.  APMEX realizes the importance of your time, the significance of knowing current events, and how it pertains to your portfolio.

APMEX takes the time to find this news for you. APMEX combines it into a few short bits to keep you informed and prepared for what is happening in the world; saving you from having to put your day on hold to search and sift through an overload of information.  You will find this market information in the APMEX daily commentaries delivered Monday-Friday:  8:00 a.m., 12:00 p.m., and 4:00 p.m. (CDT.) You have the opportunity to read the one-page articles as they are posted, or you may read all three posts at the close of each business day. By the end of this 5-day business week, you will be more educated about the value of your precious metals portfolio and the events around the world that affect your investment.

Take the APMEX challenge!

Share

Weekly Recap 6.24.2011

The sovereign debt crisis in the United States and the European Union dominated the news headlines this week; this has been another volatile week in all markets. 

On Monday,  Mohammed El-Erian, the CEO of PIMCO, told an Italian newspaper, “All of this has terrible human consequences and it’s associated with a transfer of liabilities from private creditors to European taxpayers. … [I]f this approach is kept up, more money will be wasted to save private creditors and the risk of a disorderly restructuring of the debt will be greater.”

Fitch, a ratings agency, reduced Greece’s credit rating to CCC; this rating indicates a 50% chance of default within 3-5 years. Fitch also took the opportunity to warn the U.S. that its credit rating would be placed on negative watch if an agreement to raise the debt ceiling is not reached by August 2. Although other agencies have issued warnings, Fitch was the first to talk about an actual U.S. rating downgrade.

On Wednesday, George Papandreou, Greece’s Prime Minister, survived a vote of confidence required for him to remain in office.  Papandreou is in favor of new austerity measures demanded by the IMF and EU in exchange for a new round of bailouts.  The fact that he received the vote of confidence is a sign that a compromise may yet be possible.

A new jobs report was released on Thursday; the results were a down sliding surprise.  The report showed that the number of people on state unemployment benefits rose by 9,000 when it was expected to fall by 1,000.  While either move would have been relatively small, this is another economic indicator that the recovery is not going as fast as desired.  At a press conference on Thursday, Ben Bernanke said, “We don’t have a precise read on why this slower pace of growth is persisting.”  Also, negotiations between top U.S. lawmakers from both parties broke down as Republicans unexpectedly walked out, citing an impasse regarding the tax increases demanded by Democrats.

Michael Haynes, the CEO of APMEX, was invited to speak on CNBC’s Worldwide Exchange on Thursday about the recent activity of central banks. Traditionally, central banks are a source of Gold supply in the retail Gold market; now many central banks purchase and hold Gold. 

Gold:
Spot Gold prices opened this week at $1,539.50. The high during the week was on Wednesday, June 22nd   at $1,559.30, while the low for the week occurred on Friday, June 24th at $1,498.50. Gold ended the week down $36.20 at $1,503.30. 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 $35.88. Silver reached a high of $36.77 on Wednesday, June 22nd while this week’s low for Silver occurred on Friday, June 24th at $34.45. Silver ended the week down $1.45 at $34.43. 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 $1755.00 and ended the week down $67.00 at $1,688.00. 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 $748.00 and ended the week down $12.60 at $735.40. Palladium investors preferred 1 oz. Pamp Suisse Palladium Bars and Palladium Canadian Maple Leafs this week at APMEX.com.

Featured Bullion Product:  (1 oz) .999 Fine Palladium Bar/ Pamp Suisse (w/Assay Card)

Palladium, Gold, Silver, Platium, Buy Gold, Pamp Suisse,

The 1 oz. Pamp Suisse Palladium Bar is a world-renowned bullion staple.  Palladium is considered to be platinum’s little brother, but it is worthy of its own respect.  The design of this bar is uniquely Pamp Suisse and the included assay card guarantees its authenticity.  Like platinum, palladium is considered a precious metal whose market worth is closely tied to the manufacturing sector.  Palladium is used to make everything from surgical instruments to catalytic converters.  The international demand for palladium has caused the spot price to nearly double in the last twelve months.  As worldwide manufacturing increases, so should the spot price of palladium.

Fun Fact: White gold is a combination of gold and palladium.

Share

Weekly Recap 6.17.11

On Monday, investors were jittery about Friday’s big selloff, and they cashed out their Gold holdings to cover losses in other markets.  Ratings agency S&P cut Greece’s government debt, indicating a strong possibility of a default.  Pimco’s Bill Gross said Monday that the U.S. is financially worse off than Greece and other European debt-laden countries. Mr. Gross makes the point that although the current focus is on the $14.3 trillion dollar debt, when the future costs of Medicare, Medicaid and Social Security are considered, the total is more than $100 trillion dollars.

On Tuesday, investors went bargain shopping and markets lifted off support from a few days earlier. The People’s Bank of China announced a rate hike indicating that they are making efforts to curb China’s rapidly inflating economy.  Fed Chairman Ben Bernanke said, “History makes clear that failure to put our fiscal house in order will erode the vitality of our economy, reduce the standard of living in the United States and increase the risk of economic and financial instability.”

Wednesday brought news of massive strikes and protests in Greece.  Images of riot police clashing with civilians made investors leery and sparked a selloff in the Euro.  Nervousness brought on by the situation in Greece caused a 164-point drop in the Dow.  CPI data indicated inflation in the U.S. and added fuel to the fire.

On Thursday the Euro continued its slide on the back of more chaos in Greece.  The jobs report released on Thursday added some support to U.S. markets but most attention was still focused on Greece.  Jobless claims fell last week to 414,000 claims; this fall in jobless claims was 6,000 more claims than expected. The moving average is still well above 400,000 claims and the June figures are not expected to look much different than the dismal May figures. The unemployment future still appears cloudy.

Germany and France announced Friday morning that they were united on a bailout plan to prevent a Greek default and this buoyed the U.S. equities markets. Continued protests however, indicate a lack of will in the Greek populace to make necessary sacrifices.  According to recent data from Case-Shiller, the current U.S. housing crisis could be worse than the Great Depression. Prices have fallen 33% since the collapse began which is greater than the 31% fall during the Great Depression. This Case-Shiller data is arriving when this QE2 is ending and the Federal Reserve must decide if the U.S. economy is able to stabilize.

Gold:
Spot Gold prices opened this week at $1,530.10. The high during the week was on Friday, June 17th at $1,543.00, while the low for the week occurred on Monday, June 13th at $1,511.40. Gold ended the week up $10.20 at $1,540.30. 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 $36.29. Silver reached a high of $36.53 on Monday, June 13th while this week’s low for Silver occurred on Tuesday, June 14th at $34.40. Silver ended the week down $0.30 at $35.99. 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 $1829.10 and ended the week down $70.10 at $1,759.00. 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 $814.80 and ended the week down $66.80 at $748.00. Palladium investors preferred 1 oz. Pamp Suisse Palladium Bars and Palladium Canadian Maple Leafs this week at APMEX.com.

Featured Bullion Product:      Austrian 100 Corona Gold CoinsBuy Gold, Gold Prices, APMEX, Austria Corona, Gold Demand, precious metals

The Austrian 100 Corona Gold Coins are some of the most interesting coins in the world because of their history. For example, the Austrian 100 Corona Gold Coins were among some of the first gold bullion coins available upon the enactment of an executive order on December 31, 1974, that re-entitled Americans to own gold bullion. In addition to their availability at the time of the 1974 order, the Austrian Corona Gold Coins are also fascinating because they are restrikes, which are official reproductions of coins that were originally minted for circulation. Issued from 1908 to 1914, the Austrian 100 Gold Coins first featured their date of issue. After the death of the Austrian Emperor Franz Joseph however, the gold coins were only produced as commemorative pieces and were dated 1915.

 Minted in Vienna Austria, the Austrian 100 Corona Gold Coin is .900 fine gold (21.6 karat gold) and contains 0.9802 troy ounces of gold. Designed by Stephan Schwartz, the Austrian 100 Corona Gold Coin pays tribute to Austrian nationalism and pride. The obverse of the Austrian Corona Gold Coin displays a portrait of the Austrian Emperor Franz Joseph I, who ruled from 1848 to 1916. The reverse features the Austrian Coat of Arms symbol, depicting a double eagle and a crown. Moreover, the edges of the Austrian 100 Corona Gold Coins include the lettering Vnitus Viribvs, which means “the unified strength,” a well-known motto attributed to Franz Joseph I. No longer minted, the Austrian 100 Corona Gold Coins are some of the lowest-premium gold bullion coins available on the world coin market. Appealing to both collectors and investors alike, the Austrian 100 Corona Gold Coins have begun to attract attention for both their unique history and low-premium gold status.

Share