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.
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.
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.
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.
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
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.