Gold crossed over the $1700 mark today on news of more stimulus measures by the Federal Reserve. This news pushed the dollar down; Gold played its usual inverse position by jumping up several days in a row.
Precious metals started the week with a climb that was based on European news. Negotiations between Greece and private debt holders are still under way. Sources close to the situation report a deal is close and private bondholders stand to take a loss of between 65 to 70 percent.
The Federal Reserve officially announced that the interest rates will not be raised until at least 2014. The Fed believes that the unemployment rate still needs to be controlled. It anticipates that inflation will remain consistent with firm prices. The Federal Reserve’s actions indicate that they are concerned about a struggling economy, and unfortunately, this depresses the value of the dollar which had been rising compared to the euro. Federal Reserve observers are split on whether there will be another round of quantitative easing. According to the CNBC survey in January, about half of the respondents believe there will be a QE3, while 44 percent say no. These same respondents are optimistic on the economy, as long as the European crisis does not turn for the worse and create a significant global event.
The International Monetary Fund cut its global forecast of 2012 growth from 4% to 3.3%, and already is dropping its projected growth forecast for 2013 from 4.5% to 3.9%. Those forecasts are still not set; they are dependent on the efforts of the 17-country euro zone coming together to fight financial turmoil. The IMF has also called on the European Central Bank and other countries to support the euro zone with additional funding. In an update, the IMF said, “The near-term outlook has noticeably deteriorated … The global recovery is threatened by intensifying strains in the euro area and frailties elsewhere.”
WEEKLY SPOT PRICES
Gold: Spot Gold prices opened this week at $1,678.40. The high was on Friday, 27th at $1,738.20, while the low for the week occurred on Wednesday, Jan. 25th, $1,649.20. Gold ended the week up $60.50 at $1,738.90. This week, the most popular Gold bullion products were 2012 Gold American Eagles, 1 oz. Pamp Suisse Gold Bars, and 2012 1 oz. Gold Maple Leafs.
Silver: Spot Silver prices opened this week at $32.37. Silver reached a high of $33.94 on Friday, Jan. 27th, while this week’s low for Silver occurred on Wednesday, Jan. 25th at $31.53. Silver ended the week up $1.67 at $34.04 The most popular Silver products on APMEX.com this week were 2012 Silver American Eagles, 2012 Silver Maple Leafs, 1 oz. Silver Buffalo Rounds and 10 oz. APMEX Silver Bars.
Platinum: Spot Platinum prices opened this week at $1,565.00 and ended the week up $60.80 at $1625.80. Popular Platinum products this week included, 1 oz. Platinum Bars, 1/10 oz. Platinum American Eagles, and 1 oz. Platinum American Eagles.
Palladium: Spot Palladium prices opened this week at $687.80 and ended the week up $3.60 at $691.40. Palladium investors preferred 1 oz. Pamp Suisse Palladium Bars and Palladium Canadian Maple Leafs this week at APMEX.com.
The unusual Silver bullion coin, the Silver Kookaburra, was released in 1990 by the Perth Mint of Australia. These beautiful coins celebrate the interesting bird native to Australia. Due to the variety of designs and privy marks available on the Silver Kookaburra coins, these are very popular among collectors who buy Silver coins.
Each 1 oz. Australian Silver Kookaburra contains .999-fine Silver and includes proof-like frosting in the central design. The obverse features a portrait of Her Majesty Queen Elizabeth II and lists the face value of the coin. The reverse displays the kookaburra. Every year, the coin has a slightly different design, which makes the Silver Kookaburra coins attractive to collectors. From 1990 through 2010, only 300,000 coins were minted each year; the 2011 and 2012 versions have mintages of just 500,000.
The Perth Mint originally began in 1899 as a branch of Britain’s Royal Mint in order to help supply the Gold sovereigns and half sovereigns, which were used as everyday circulating coins throughout the British Empire. In 1970, control of the mint passed from Britain to the Western Australian Government.
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