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

Our Lowest Price Ever On 1 oz 2013 Gold Canadian Maples. While Supplies Last.

Our Lowest Price Ever On 1 oz 2013 Gold Canadian Maples. While Supplies Last.

Don’t Miss This Great Opportunity – Our Lowest Price Ever!
Save When You Order By Friday, May 24, 3 p.m. (CDT).

Any quantity only $39.99 per coin over spot!
Canadian Gold Maple Leaf coins, considered some of the most beautiful Gold coins in the world, appeal to both investors and collectors worldwide for their beauty and high purity.

Coin Highlights:

  • Contains 1 oz of .9999 fine Gold.
  • Multiples of 10 are packaged in mint tubes. Multiples of 500 are packaged in “Monster Boxes.” All other coins will be in protective plastic flips.
  • Eligible for Precious Metals IRAs.
  • Obverse: Right-facing profile of Queen Elizabeth II, along with the year and face value.
  • Reverse: A large, single maple leaf with a small maple leaf privy mark that has a micro-engraved “13” in the center, visible under magnification. The “13” will change annually to correspond with the year of issue.
  • Guaranteed by the Royal Canadian Mint.

Protect and display your coin in style by browsing our Coin Supplies category.

Gold Maple Leaf coins — why buy Gold from APMEX?

Because Gold Maple Leafs are eligible for Gold IRA accounts, Gold Maple Leaf coins are a great way to diversify one’s wealth. 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. Also, you can turn to us when it’s time to sell Gold or sell Silver. Click here to buy now.

Physical Gold Demand Up 2013

Physical Gold Demand Up 2013
The global increase in demand for physical Gold began in the fourth quarter of 2012 and continued into the first quarter of 2013 as the aggregate metric tons of physical Gold taken by bar and coin buyers increased from approximately 336 tonnes to approximately 377 tonnes, an increase of over 12%. Physical Gold bar and coin demand in the United States grew from approximately 17 tonnes in the fourth quarter of 2012 to approximately 20 tonnes in the first quarter of 2013, an increase of approximately 22%.

3 Days Of Gold Eagle Savings

Don't Miss This Golden Opportunity! Save When You Order By Thurs., May 16, 3 p.m. (CDT).

Don’t Miss This Golden Opportunity!
Save When You Order By Thurs., May 16, 3 p.m. (CDT).

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With an iconic design and 1 oz of Gold, the 2013 Gold Eagle combines the best aspects of collectibility and bullion investment appeal, which has made it America’s preferred Gold coin. Act now: http://po.st/lUWEgz

Coin Highlights:

  • Contains 1 oz actual Gold weight.
  • Multiples of 20 are packaged in mint tubes. Multiples of 500 are packaged in “Monster Boxes.” All other coins will be in protective plastic flips.
  • Eligible for Precious Metals IRAs.
  • Obverse: Adapted from Augustus Saint-Gaudens’ famed Gold Double Eagle design, which features Lady Liberty walking confidently against the sun’s rays.
  • Reverse: Designed by Miley Busiek, the reverse shows a male bald eagle in flight carrying an olive branch to his nest, where a female awaits with her young.
  • Minted at West Point, N.Y.

Protect and display your coin in style by adding attractive display or gift boxes recommended for this coin, or browse in our Coin Supplies category.

Gold Eagle 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 Gold Eagles to your holdings today! APMEX is where to buy Gold! Also, you can turn to us when it’s time to sell Gold or sell Silver. If you are buying more than $50,000, please call (800) 375-9006.