Weekly Gold & Silver Market Recap – 1/24/2014

GOLD REMAINS AT SIX-WEEK HIGH

Lower equities and a weaker U.S. dollar buoyed Precious Metals at the beginning of the week. Though gains were modest, Gold futures traded at their highest levels in almost six weeks. “I think the worst of the outflows is behind us,” Danny Laidler, head of ETF Securities’ Australia and New Zealand business, said. “A lot of our clients are still holding onto Gold as a risk-event hedge.” Gold bugs will continue to eye metals prices as Chinese demand ahead of the Lunar New Year, coupled with other economic factors, could continue to boost the yellow metal.

INVESTORS ANTICIPATE EARNING RESULTS FOR FOURTH QUARTER

The U.S. stock market closed Monday in observance of Martin Luther King, Jr. Day. However, it was expected investors would be focused Tuesday as earnings season continues and several Dow Jones Industrial companies were slated to announce fourth quarter results. Strong earnings reports were needed to boost stocks as poor industrial output and weak employment data have weighed on equities to start 2014.

PRECIOUS METALS PRESSURED FROM QE SPECULATION

Precious Metals prices headed downward through mid-day trading Tuesday, giving back gains earned at the end of last week. Speculation of continued quantitative easing (QE) tapering, a stronger U.S. dollar and a downbeat price forecast for Gold this year have weighed on Precious Metals. Mike Cullinane, head of Treasuries trading with D.A. Davidson in St. Petersburg, Florida, said, “The view out there is there’s going to be continued tapering on a gradual basis. Another $10 billion in tapering is a logical way to go.”

THREE RISKS POSED TO STOCK MARKET

MarketWatch’s Jeff Reeves wrote about three risks that could crash the stock market  in 2014, the first being disappointing jobs numbers. Reeves wrote that December’s disappointing report (released at the beginning of this month) was an outlier due to the bad weather, but “of course, the second option is that December’s jobs numbers weren’t a fluke… Friday, Feb. 7 [is] going to be a big day for the markets when January jobs data hits.” The second risk is bad earnings. “Profit margins have been at record highs for a while and haven’t cracked, so why would they this earnings season? Or the next? That’s the million-dollar question, and a huge risk to watch.” A lending drought is also a large concern for the markets. “If reports continue to show slowing lending in the U.S. and around the world, it could get painful for investors.”

PLATINUM REMAINS STRONG AS STRIKES BEGIN

Precious Metals prices fell slightly Wednesday as the U.S. dollar and equities strengthened over the course of the day, which encouraged some profit taking. Gold has already felt pressure this year as the U.S. economy continues to reflect growth and stability, along with concerns of further stimulus reduction measures. The next Federal Reserve policy meeting is set for January 28-29, and the market predicts that the Fed will announce its second round of tapering. Platinum, on the other hand, was the only metal with positive performance Wednesday, due mainly to Impala Platinum shutting down production at all of its South African operations a day ahead of planned strikes concerning wages.

EUROPE TO EXIT DEBT CRISIS SOON

Europe’s financial crisis has been a major concern for several years; however some economists suggest they may be exiting their fiscal issues soon. For instance, Switzerland appears to have escaped its recessionary bonds and may begin to show growth again. Sir Martin Sorrell, CEO at WPP Group and noted British businessman, said, “I think the answer is yes-ish. There are two Europes. There’s a Western Europe and there’s an Eastern Europe. I’m very bullish about Eastern Europe,” which includes Germany, Poland and Russia. German economist Axel Weber said, “Everyone expects the eurozone to grow, so that’s good. After several years of crisis, it’s quite normal to look on the bright side of things, to get excited about improvements. It may be too one-sided of a view.”

WEAK JOBLESS CLAIMS SUPPORTS GOLD

The Gold price overturned Wednesday’s losses on Thursday as a weaker U.S. dollar and a flat jobless claims report indicated economic growth is not as robust as predicted. Federal Reserve policymakers look to employment numbers as an overall gauge of domestic economic growth and use the data to determine the future of their quantitative easing (QE) program. This week’s downward revision of jobless claims projections marks the second week in a row that employment expectations were altered. As next week’s Federal Open Market Committee meeting approaches, jobs data will remain central to Fed officials’ decision to perpetuate QE or not.

GOLD PRODUCTION TO BE CUT IN 2014

As U.S. investors look to employment numbers, stock momentum and the Federal Reserve to gain insight into the future of Precious Metals prices, last year’s price drop has affected production of physical Gold. “The miners were mining at the highest possible cost because the Gold price was going up and when it stopped going up, they had to reduce that. So that means that they will mine less Gold,” Peter Hambro, chairman of Russian Gold mining company Petropavlovsk, said. With smaller scale mining operations closing up shop, larger firms like Petropavlovsk are cutting production back significantly this year. The diminished supply of physical Gold prompted Reuters to predict the yellow metal would be unable to slip much below current levels.

GOLD TRADING FLAT, STILL SET FOR FIFTH STRAIGHT WEEKLY GAIN

Precious Metals prices took a slight pullback Friday, though Gold was still poised for its fifth straight weekly gain. Even with today’s decline, an approaching Fed meeting and speculation that India will lower its import duty, many investors still have a positive outlook on Gold. Jeffrey Wright, managing director at H.C. Wainwright, said, “The existing pullback in equities markets has led to some ‘safe-haven’ buying, the potential for an increase in Gold imports to India if they lower the import duty, along with efforts in Europe to continue their own quantitative-easing policies are all supportive of Gold at the present time.”

 

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Share Your Ideal Precious Metals Portfolio By June 24th, 2013 And You Could Win One Of The Pieces.

Enter for a chance to win a piece from your ideal Precious Metals portfolio

Enter for a chance to win a piece from your ideal Precious Metals portfolio

APMEX Pinterest Portfolio Challenge
Put together the Gold and Silver portfolio of your dreams and you could win one of your favorite pieces. All you have to do is share your ideal portfolio on Pinterest. Include at least one item that costs less than $50 and you could win that item. Here’s how to enter:

  1. Go to www.pinterest.com/APMEX and follow APMEX.
  2. Create a pinboard and name it “APMEX Precious Metals Portfolio.” Under Categories, select Products.
  3. Pin your favorites to your Pinboard. Have fun. Find your favorite portfolio pieces on the APMEX Pinterest page or www.APMEX.com and pin them to your pinboard. Be sure to include at least 5 items, including one that costs less than $50.
  4. Go to www.facebook.com/APMEX and enter the contest. After your board is created, submit your board through the (link/entry form) on our Facebook Page. Precious Metals products pinned onto your Pinterest board from sites other than www.pinterest.com/APMEX or www.APMEX.com will disqualify your pin board and your entry.
  5. You could win a product that was pinned to your board. APMEX will choose the nicest board to showcase. You could win the product from your board that’s priced at under $50.

Check out the complete rules here and start pinning your favorites today. You must complete your entry by June 24th, 2013 at 4 P.M (CT) to win.

Price Break on Gold Buffalos – 3 Days Only

An Investment That Generations Can Appreciate. Save When You Order By Thurs., June 13, 3 p.m. (CDT).

An Investment That Generations Can Appreciate.
Save When You Order By Thurs., June 13, 3 p.m. (CDT).

When the American Gold Buffalo coin arrived on the scene in 2006, it immediately demanded a place among the world’s elite bullion coins. Each 2013 Gold Buffalo coin contains 1 oz of pure .9999 fine Gold. Get America’s premier Gold coin today. Multiples of 20 American Gold Buffalos are sealed in original sheets of plastic.

Because Gold Buffalos are eligible for Gold IRA accounts, Gold Buffalo coins are a great way to diversify one’s wealth.

Gold Buffalo Coins — why buy Gold from APMEX?

APMEX makes buying Gold online easy with prompt service, convenient access, and competitive pricing on a wide selection of Gold coins, Gold bars and Gold rounds. Call our Account Managers toll free or click on the “Live Chat” button now to add American Gold Buffalo coins to your investment portfolio or bullion holdings today! APMEX is where to buy Gold!

Click Here to Place Your Order Now

Year to Date Mintage By Month for 1 Oz Gold & Silver American Eagles

The United States Mint has reported the final minting for May 2013 and for the five months ended May 31, 2013, the mintage was up 115% for the 1 oz Gold American Eagle over the same five month period from 2012. In a similar manner, the mintage on the 1 oz Silver American Eagle was up 64% for the five months ended May 31, 2013 over the five months ended May 31, 2012.

US Mint Gold YOY May 2013 US Mint Silver YOY May 2013

Affordably Sized Gold Coins Get A Price Break

The Price Is Right On These Affordably Sized Gold Coins! Save When You Order By Thurs., May 30, 3 p.m. (CDT).

The Price Is Right On These Affordably Sized Gold Coins!
Save When You Order By Thurs., May 30, 3 p.m. (CDT).

2013 1/10 oz Gold Canadian Maple Leaf
Canadian Gold Maple Leaf coins are considered some of the most beautiful Gold coins in the world. These Gold bullion coins appeal to investors and collectors worldwide for their beauty and purity.

Get this fractional Gold Maple Leaf in Brilliant Uncirculated condition. These Canadian Gold bullion coins contain .1 oz of .9999 fine Gold, and are in stock and ready to ship. Multiples of 20 are shipped in sealed plastic sheets.

2013 1/10 oz Gold Austrian Philharmonic
Each of these Gold Austrian coins is in Brilliant Uncirculated condition. These Gold Philharmonic Coins contain .1 oz of .9999-fine Gold! (Multiples of 20 come in mint sealed tubes.)

Because Gold Philharmonics are eligible for Gold IRA accounts, Gold Philharmonic coins are a great way to diversify one’s wealth. Buy Gold Philharmonics to add to your Gold collection or Gold investment portfolio.

2013 1/10 oz Australian Gold Kangaroo
The 2013 1/10 oz Gold Kangaroo features a kangaroo in a classic pose set against a bush scene. The “P” mint mark, appears on the reverse of each coin, along with the inscription “Australian Kangaroo,” the date, the size of the coin and the purity of “9999 Gold.”

The obverse of each coin shows the Ian Rank-Broadley likeness of Queen Elizabeth II, as well as the coin’s monetary denomination, $15 AUD.The maximum mintage of this Gold bullion coin is 200,000. Each Gold Kangaroo coin is held in a plastic capsule.

Weekly Gold & Silver Market Recap – 5/24/2013

GOLD BREAKS LOSING STREAK

This week brought an upward change the Gold price hasn’t seen in weeks. Gold & Silver experienced a dip Monday morning, but quickly recovered as technical trading gained positive momentum. “As the market started to come up, it was hitting [short-seller] stops and then that old huge level of support [for Silver], that low [traders] would put all their buy stops there. Once [prices] hit that, that’s when it did that parabolic move up,” RJO Futures senior commodities broker Phil Streible said. “All those shorts that got in this morning, they’re all covering, and all the longs that got blown out get back in on the long side.” Gold is also regaining confidence as there have been considerable selloffs in both Japanese stocks and the global equity markets. Investor sentiment quickly shifted toward the safe haven asset once economic concerns began to brew in Europe and Japan. “I think the feeling on the market is at the moment — considering how there’s been almost like a one-way street for equities over the last few months — will this just be a couple of days blip and then the buyers will return?” Ole Hansen, head of commodities strategy at Saxo Bank, said in a phone interview from Copenhagen. Gold’s negative correlation to the stock market was on display this week, as the yellow metal is heading for its best week in the past month. Mitsubishi analyst Jonathan Butler said, “The conditions are favourable for a continued role for Gold. Those loose economic policies aren’t coming to an end just yet, though there are some voices in favour of a more hawkish stance in the United States.”

ALL EYES ON THE FED

This week loomed very large in the United States, as Chicago’s Federal Reserve President Charles Evans spoke Monday in front of Congress on the outlook of the economy. “This series of events certainly has the potential to overshadow what is likely to be a relatively quiet start to the week for fundamental macroeconomic indicators out of the US, but the big question is precisely when we’ll see the market react to the imminent tighter monetary conditions,” GFT Markets market strategist Fawad Razaqzada said. Many believed the Fed would announce the slowdown of their easing program which could drastically change the global economic landscape. However, after U.S. Federal Reserve Chairman Ben Bernanke spoke on Wednesday it was clear that the easing will continue for now. When Bernanke speaks, the Gold market listens. Wednesday was no different when he said it was too early to slow down the central bank’s easing program based on current economic conditions. “The correlation of the dollar with Gold has been quite strong lately, and today’s weakness in the U.S. currency after Fed officials said it may be too early to be pulling back of QE (quantitative easing) certainly helps the metal,” Societe Generale analyst Robin Bhar said. While Gold enjoyed a positive week, not all financial markets can say the same. Ongoing concern surrounding the future of quantitative easing (QE) and weakness in Asian markets weigh on equities markets as stocks continue to trade down heading into the weekend. “Positive durable goods sales were unable to bring in any lasting support and instead may be having the opposite effect, providing more evidence for the Fed to begin tapering QE,” CMC Markets’ senior market analyst Colin Cieszynski said. This week’s markets slump could disrupt a four week winning streak for both the S&P 500 and Dow Jones Industrial Average.

At 4:45 pm (EDT), the APMEX precious metals spot prices were:

  • Gold, $1387.00, Down $7.80.
  • Silver, $22.45, Down $0.17.
  • Platinum, $1453.60, Down $5.10.
  • Palladium, $730.30, Down $10.40.

For more APMEX reviews of daily and weekly Precious Metals market activities, visit our News and Commentaries page.

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.

New To Investing in Precious Metals – A Q&A Session with APMEX Director of VIP Services, Peter LaTona.

As a new investor in Precious Metals, several questions may arise when you open a Precious Metals investment account. Here below is a recap of our most recent Q&A session where APMEX Director of VIP Services Peter LaTona helped answer questions submitted by our fans and followers on Facebook and Twitter, as new investors of Precious Metals.

For more information on how to get started with Precious Metals investing please visit our website and feel free to download our Quick Start Guide to Investing in Precious Metals. If you have additional questions please call us at (800) 375-9006 to speak to a representative today.

Q – I have an annuity retirement plan, and I want to roll that over into a precious metals IRA. How difficult will this be?

A – Great question, and the good news is that it is easy. You can get information on our website at http://www.apmex.com/IRABenefits/default.aspx or just call Ladonna at (800) 375-9006 ext. 120.

Q – What is the reason for the sudden Gold and Silver price drop? Any idea? I’m all for it because it is a great buying opportunity, but is it going to go back up?

A – I have not seen a specific article or event explaining today’s drop, but the general theme that has been out there the past couple of weeks is that the U.S. and global economies are getting better faster than expected. I will leave that to you if you believe that is true. If you are referring to the drop that occurred in April, it had to do with large institutions and hedge funds (Speculators) selling paper positions. The physical buyers (Investors) saw this as a buying opportunity and  purchased in record amounts

Q – What is the difference between .9999 fine Gold, and .999+ Gold? I see that a lot.

A – It is all about the purity of the Gold. If we were talking about jewelry, the .9999 would be more expensive because it is more pure. When we talk about bullion coins and bars they are equal because they will all be considered one ounce of Gold. A Gold American Eagle contains 1 oz of Gold, but it is only .9167 pure (22 karat) because it contains alloys to make it more wear-resistant. The Gold Canadian Maple Leaf is .9999 pure (24 karat), but it also contains 1 oz of Gold. The Canadian coin is smaller than the American Eagle and has a shiny Gold color; the Eagle does not. Yet in bullion terms, they are both just 1 oz of Gold. The purity might make it look more attractive, but does not add value.

Q – I’ve been a loyal customer for more than 2 years now. I tell my close friends and family that investing in Precious Metals through APMEX is a great alternative to high-risk equities. My question is, does APMEX offer visitor tours of the facilities or have some sort of visitor center that highlights the commitment of servicing the Precious Metals industry for so many years? Also, I’m still waiting for the return of the 1/20 oz Gold Mexican Libertad.

A – APMEX has three physical locations, and our vaults are located at the former Federal Reserve Bank in Oklahoma City. Our security is as tight as Ft. Knox and even if we wanted to conduct tours, our insurance would not allow it. As a sales person, I wish we could offer customer tours. Anyone who has seen our operations recognizes that there is nothing else out there even close. Our vaults are the former Federal Reserve Bank vaults with doors that weigh more than 250,000 lbs. It is truly an amazing sight and walk through history. Yes, it will be great when we see the 1/20 Libs again.

Q – When do you anticipate a drop in premiums?

A – I do expect a drop as the producers will eventually catch up to demand. There are always cycles. Unfortunately, although I believe this will happen, I cannot say when and would not guess. The tricky part is that generally speaking the premiums will drop as spot prices go up because demand usually decreases when spot price goes up. So on one hand the premiums get better, but spot price is rising. This is not always the case, but usually the case.

Q – I see some “experts” say that Silver should reach $40 and even higher by the year’s end, $60 per ounce next year and upwards of $100 per ounce in the next few. Do you think this is possible?

A – Most anything is possible, but you can find experts saying it will go up, and some say it will go down. Be careful of experts because often they want to sell you Silver. In the short term no one knows for sure, but Silver is not necessarily a short term investment. The predictions you posted are certainly on the aggressive side. Do I see reasons why a person would be long term bullish on Silver and Gold…yes…but when I see predictions of radical ups and downs, I think twice.

Q – Just started purchasing Silver. Any tips? Bars or Silver Eagles?

A – Bars and Silver Eagles are both popular, so both are good choices. Bars cost less, but the spread is relatively the same as Silver Eagles. Coins like the Silver Eagles are made by a government mint. They have greater authenticity. Coin are more intricate to produce, which is why they cost more, but they are much harder to counterfeit than bars.

Q – I’ve heard that Gold prices have been artificially kept low. What is your opinion?

A- Good question, and I have heard these rumors as well. I do not have enough facts to say that this has not nor could not happen; I am not willing to take one side or the other. In today’s world, I do believe it is possible. But has it or will it, I do not know.

Q – What I want know is, if the demand is so high, how are prices falling. Today’s Gold is under $1,400? Something isn’t right here.

A – Physical demand is high, but paper demand, which is driven by large institutional investors and hedge funds, is low. Paper sales drive spot prices much more than physical sales. Physical demand is driven more by long term investors and paper demand is driven more by traders.

Q – What effect on spot prices should we see with the collapse of the Rio Tinto mine in Utah? It is the world’s second largest copper mine, but it also was a large producer of Gold, and supplied 16% of U.S. sourced Silver. It’s now closed. Should such supply constraints be a cause for concern? When will prices be affected?

A – It will probably not have a dramatic effect, but it certainly will not help prices go lower. Platinum and palladium are more affected by supply and demand than Gold and Silver. I am not saying there will be no effect, but I am saying it may not be dramatic. World events and economies will continue to be major factors.

Q – What are your predictions for Gold and Silver prices 20 years from now? Do you see Silver going to over $100 an ounce in the next 10 years?

A – I am long term bullish, but I never predict prices. APMEX does not predict prices. We do not want to be one of those companies who try to get you to buy because we predict high prices. It is hard for me to imagine the scenarios that would have to happen for prices to be less 10-20 years from now.

Q – I bought Gold a few months back, and the price of Gold keeps dropping. Am I going to get my money back? Is Gold going back up any time soon?

A – When you purchased the Gold, did you have a date in mind that you intended to liquidate? The question should be do you believe that this will be a good investment at your target liquidation date. I would tell anyone that if you are looking for a quick turnaround, physical metals may not be the best way to go.

Q – It’s even hard finding junk industrial Silver. 3-4 years ago it was everywhere! What will make the inventory get back to normal? Or will it?

A – We have plenty industrial Silver options available. Just check this link http://www.apmex.com/Category/860/Industrial_Silver.aspx