Profit Taking Pulls Down Stocks, Precious Metals

 

U.S. stock futures and Precious Metals are down slightly this morning, as investors are taking profits on the recent gains.  News of a downgrade to the outlook for Greece’s sovereign debt rating also affected the markets, as the EU and International Monetary Fund seem less likely to provide more bailout funds to the troubled country.  Also, the Bank of England paved the way for another round of quantitative easing for its country, cutting growth and inflation forecasts.

At least one analyst believes that the recent market rally is actually just setting up the stock market to fall.  “I think we’re in choppy waters and that continues,” Charlie Morris of HSBC Global Asset Management said.  “You need to trip the market to have a proper collapse.  So you almost need to set it up with a rally, get everyone excited and then it can fall.  If there are risks, the risks to a very negative market come after this rally fades.”  In the long-term, traditionally, steep stock market losses are supportive of the Gold price.

The main topic supporting the price of Precious Metals right now is still the possibility of future monetary easing by the U.S. and the eurozone.  Richcomm Global Services senior analyst Pradeep Unni said, “Gold seems to be supported by hopes that Europe and the United States would launch more stimulus measures to help shore up their faltering economies.  Investors are betting that the festering debt crisis in the eurozone could push the ECB to launch a new round of bond-buying soon.”

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1,608.40, Down $2.40.
  • Silver, $27.90, Down $0.30.
  • Platinum, $1,403.70, Down $7.70.
  • Palladium, $586.50, Down $3.20.

 

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Precious metals have deflated since Bernanke’s testimony earlier this week

 

Precious metals have deflated since Bernanke’s testimony earlier this week, but remain poised for the first overall weekly increase in about a month. Physical demand of gold is still hurt by India’s currency issues and a weakening ETF market as well. Analyst David Wilson’s remarked, “Given the collapse of the rupee, gold prices in India are still close to record highs, which is killing the jewelry market at the moment… Physical investor demand, when you look at ETFs, is not positive, so you would need speculative demand to be making up the difference, and it’s not. That’s related to the issue of growing skepticism over whether there will be U.S. QE.”

Meanwhile a Spanish bank bailout has been agreed to pending the actual bank audit to see just how bad the property loan situation actually is. Luxembourg’s finance minister Luc Frieden said, “We have formalized what we discussed in the past two Eurogroup meetings. We have formally approved the memorandum that lays out the conditions under which Spain can be lent money for the recapitalization of its banks… The approval of all 17 ministers is there, and that means that the program can continue. Money will not flow immediately, because work on the analysis of the specific banks is ongoing.” The audit is expected to be completed by mid-September.

Meanwhile concerns continue to mount over the correct response to the escalating violence in Syria following Russia and China’s veto of the U.N.’s proposal. The rumors swirling President Assad has agreed to give up power are being shot down. The clamor for military assistance is not there the same way it was in Libya either. The overall feeling is that “the regime is going through its last days,” according to rebel leaders.

At 9:00 a.m. (EDT) – the APMEX Precious Metals spot prices were:

  • Gold – $1,578.80 – Down $3.20.
  • Silver – $26.98 – Down $0.33.
  • Platinum – $1,411.40 – Down $11.70.
  • Palladium – $578.40 – Down $7.50.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.

 

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First Time Special Price On Perfect Proof Buffalos

 

Proof Perfect – Perfectly Priced! 2012-W 1 oz Gold Buffalo PF-70 NGC. Now $50 Off Each Coin

2012-W 1 oz Proof Gold Buffalo PF-70 NGC

For the first time in APMEX history, you can order the 2012-W 1 oz Proof Gold Buffalo PF-70 NGC and save $50 on each coin. In Perfect 70 condition and with a beautiful Proof finish, this is the latest release of one of the world’s most elite coins. Order today to take advantage of this discount for any quantity of coins purchased. While supplies last.

RARE AND HISTORIC GOLD BUFFALOS

The Gold Buffalo was America’s first 1 oz .9999 fine Gold coin and features the classic 1913 design that adorned the popular Buffalo Nickel coin in the early 1900s. With this offer, you get everything that makes the coin popular, and then some, for $50 less.

  • Famous design: The image on the obverse, or front, of this 1913 James Earle Fraser design features the profile of a Native American chief, believed to be a compilation of three different Native American chiefs. The buffalo image on the reverse, or back, was modeled on the famous Black Diamond, the largest buffalo in captivity at that time.
  • Perfect 70 grade from NGC: NGC, graded this coin a Perfect 70 – the highest grade possible on the Sheldon Grading Scale that runs from 1 to 70. The coin is encased in an NGC slab to guarantee and preserve its authenticity and condition.

Proof finish: The dies that struck these coins were specially polished to give the background a mirror like sheen. The raised devices exhibit a frosty, detail rich finish.

 

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Precious metals price jump following eurozone announcement

Precious Metals prices were on the rise following losses Thursday. Precious Metals prices have been following the global economic situation and the movement of the American dollar. There is speculation that Silver is undervalued at current levels and about what actually is driving the price. Julian Phillips at silverforecaster.com said, “With the monetary stresses now and for the next few years at current levels, there is little reason why prices should fall. Gold will react more and more as a monetary metal, and the Silver prices will move with it, not with economic conditions.”

Crude oil and Gold prices began to climb this morning after European Union leaders announced a strategy to have a single financial director for the region. The European Central Bank will step into this supervisory role for banks in the eurozone. This approach should help calm the markets. In some bearish news affecting crude oil, Saudi Arabia is planning to resume an oil pipeline project that has been on hold for a reported two decades, which should relieve some concerns involving the Strait of Hormuz.

United States consumer sentiment for June fell to its lowest level since December. Americans’ attitude toward the economy isn’t necessarily optimistic now, especially from the viewpoint of those in households with incomes of more than $75,000. Richard Curtin, a survey director, said, “Since these households account for a large share of total spending, if the declines continue in the months ahead, it could have a substantial impact on total spending.”

At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1,599.10, Up $47.50.
  • Silver, $27.57, Up $1.22.
  • Platinum, $1,441.30, Up $53.50.
  • Palladium, $586.50, Up $21.60.
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Limited time offer: $13 off shipping on orders over $250. Conditions apply

American Silver Eagle

American Silver Eagle (Photo credit: Wikipedia)

Use coupon code SHIPPINGSALE13 at checkout to get $13 off shipping on orders over $250. Valid for only one use per customer. Offer ends Monday July 2nd, 2012 at 9 AM CT. Offer valid on domestic orders only. Shop NOW!

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