Weekly Gold & Silver Market Recap – 5/10/2013

As the week comes to a close, Gold is sitting at a two and a half week low. On Tuesday, the first of numerous reports that affected the price of Gold came out of Europe regarding formation of a banking union. This has caused a belief that there will be less financial risk in the region, which has in turn caused a drop in safe haven assets such as Gold. “Any indication that Europe is working towards a resolution is bad for Gold,” Adam Klopfenstein, a senior market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “Money is flowing into riskier assets like equities.” The next move in the Gold price came on Wednesday when the U.S. weekly jobless claims fell to a five year low. Improved labor conditions tend to put pressure on the yellow metal due to the Federal Reserve’s preservation of a low federal funds rate as compared to the unemployment rate. If the Fed raises interest rates, the market perceives that as a sign they may also cut back on current monetary policy, which makes Gold shine as a safe haven asset. “Jobless claims were better than expected, indicative of a recovering U.S. economy, and the dollar is a little bit stronger … In that kind of environment you would expect Gold to come under pressure,” Deutsche Bank analyst Daniel Brebner said. The Gold price declined as the U.S. dollar strengthened against the yen and investors focused on Federal Reserve Chairman Ben Bernanke’s speech Friday morning. Expectations that Bernanke might reveal a plan to slow the Fed’s bond purchase program weighed on the metal as similar rumors have negatively impacted Gold in the past. Friday’s price dip drove Gold down 2.5 percent to its lowest level in two weeks.

Even in the face of lower Gold prices, many investors and market analysts believe the future for the yellow metal is strong. Investors have noticed the movement metals have experienced and continue to feel confident purchasing hard assets. New concerns come from the Federal Reserve’s proposal to modify quantitative easing (QE) based on recent positive economic data. “With the Fed’s recent commitment to stand ready to alter the pace of QE, based on employment and inflation expectations, bullion prices are likely to remain highly sensitive to changes in U.S. employment data,” HSBC said in a note. Andy Xie of MarketWatch believes that with growth stuck at about a two percent range and inflation seemingly rising in the future, the U.S. is in a period of stagflation. Xie wrote, “Despite its recent setback, Gold remains a big beneficiary of the current macro environment. It could make a new high in the current year and rise much higher in 2014. The Gold bull market will end when an inflation crisis pushes central bankers around the world to tighten aggressively… For the masses, Gold is the best inflation hedge.” Last month, Gold imports into China more than doubled, setting an all-time high. One of the most impressive things to note is that all of this happened before Gold’s price dropped in April. “This is quite out of expectation as all these imports were done before the market slump in April. Judging from the explosive growth of trading volume on the Shanghai Gold Exchange in the second half of April, and anecdotes that many jewelry shops are sold out throughout the country, imports might be even more substantial in April,” said Qu Mingyu, a trader at Bank of China, one of the country’s three largest bullion banks.

At 4:00 pm (EDT), the APMEX precious metals spot prices were:

Gold, $1445.30, Down $25.60.
Silver, $23.85, Down $0.15.
Platinum, $1491.80, Down $26.20.
Palladium, $709.00, Down $7.80.

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

Some Of The Rarest And Most Collectible American Gold Eagles

These 2013 Certified Gold Eagles Have Everything Collectors & Investors Value.

These 2013 Certified Gold Eagles Have Everything
Collectors & Investors Value.

If you want to see the finest Gold Eagle coins that the U.S. Mint makes, in conditions that collectors value years after they’re released, check out these 2013 Proof Gold American Eagles:

- Proof Finish: Special dies give the backgrounds on these coins a mirror-like finish, so the iconic 1907 Saint-Gaudens design really stands out.

- First Strikes & Early Releases: These designations mean that PCGS and NGC, both highly respected grading agencies, received these coins within 30 days of release.

- Certified: These Gold Eagles carry the coveted perfect 70 or near perfect 69 grades on the Sheldon Grading Scale of 1 (barely discernible) to 70 (absolute perfection).

- 4 Sizes To Choose From: From 1/10 oz to 1 oz, there’s an affordable option for every collector.

Happy Mother’s Day – Gift Mom Something Other Than Flowers This Year

Are you tired of giving mom the same type of gift every year? Have you seen the flowers you ordered two weeks prior to Mother’s Day perish right before your eyes just days after they are delivered? Are you looking to give mom a gift that lasts a lifetime that is both meaningful and valuable?  Well, we have just what you are looking for.

Click here to view our Mother’s Day gift selection. Place your order today and pay by credit card or bank wire to get your delivery it in time for Mother’s Day.

  • Credit Card Orders – Typically these ship within 1-3 business days from the day we process your card. This may depend on your previous order history and order amount
  • Bank Wires – Typically these ship within 1-3 business days from the day we receive your wire. This is the fastest way to pay for your order.
  • All these timelines exclude weekends and holidays.

Do you have any questions? Please call us at 1-800-375-9006. Our representatives are here to assist you.

10 Key Terms First Time Investors Should Know When Investing In Precious Metals

Are you new to investing in Precious Metals? Well, we have gathered a list of 10 key terms you should know when investing in Precious Metals.

Spot – Spot is the current market price of the metal, which is always changing during global market hours (just like a normal stock changing minute-by-minute throughout the day).

Melt Value – The intrinsic worth of metal in a Precious Metal product.

Spread: The Spread is the difference between the buying price and the selling price of a product. For example, if a dealer will buy your Silver Eagle for a $1.80 premium that you purchased at a $3.50 premium, the spread is $1.70. The spread is used to measure how far the metal’s price needs to move to create an investment gain.

Troy Ounce: The troy ounce is the most common unit of measurement for Precious Metals and is the current standard for bullion pricing and trading. It is slightly heavier than the avoirdupois, or common “kitchen,” ounce, with 1 Troy ounce being equal to 1.097 avoirdupois ounces.

Ask – The price at which a dealer offers to sell a product.

Bid – The price at which a dealer is willing to buy a product.

Bar – Bars and rounds are produced by refiners and other private companies and generally carry a lower premium over the value of the Precious Metal content.

Bullion – Bullion refers to Precious Metals products that are manufactured in a bar, round or ingot form by a refiner or private producer and usually having a purity of at least 99.5% or more.

Bullion Coin – A legal tender coin, produced by a sovereign government, the value of such coin primarily depends on its Precious Metal content rather than it legal tender or numismatic value.

Collectible Coin – Coins that are of interest to collectors for the numismatic value they carry in addition to their Precious Metal content. The value may be determined by the coin’s condition, age, rarity, artistry and more.

It shouldn’t be difficult to start a Precious Metals Investment Portfolio. Our account managers are available to assist you. Call us at 800-375-9006 or visit us at APMEX.com

Plenty Of Gold And Silver In Stock Ready To Ship Today

If You Want Gold & Silver, You've Made The Right Choice. APMEX Has Thousands Of Products In Stock & Ready To Ship Today!

If You Want Gold & Silver, You’ve Made The Right Choice.
APMEX Has Thousands Of Products In Stock & Ready To Ship Today!

The more the markets change, the more you want Gold & Silver products from the world’s most respected mints, refiners and assayers. That’s all APMEX sells. And no matter what happens in the market, our prices remain transparent, competitive and fair. Here are just a few of the popular bullion products we have in stock:

2013 1 oz Silver American Eagle

2013 1 oz Gold American Eagle

1 oz Credit Suisse Gold Bar (In Assay)

1 oz Pamp Suisse Silver Bar (In Assay)

APMEX offers Precious Metals through the APMEX secure website 24 hours a day, 7 days a week. Or take advantage of our extended live help hours by calling our Account Managers toll free at (800) 375-9006, Mondays through Thursdays from 7 a.m. to 7 p.m., and Fridays from 7 a.m. to 5 p.m. (CDT).