APMEX News

APMEX News

Closing Gold & Silver Market Report 5/18/2012

Fri, 18 May 2012 16:20:00 -1100

GOOD DAY FOR GOLD, BAD DAY FOR STOCKS  

It is generally a safe bet to say that Gold and the American dollar do not move in the same direction, but that trend has not held the past couple of days. Gold bounced sharply off lows, while the dollar continued to go up. Perhaps Gold has decoupled from risk assets and is again attracting investors looking for a safe haven. Certainly there has been disconcerting front page news of late. JPMorgan lost $2 billion and now it turns out they have an additional $100 billion tied up in similar risky bonds. Chesapeake Energy is under intense scrutiny for loans made to its chief executive. Moody’s downgraded 16 Spanish banks, and Greece must have another election to decide how to deal with an impending economic collapse. U.S.A. stocks experienced the longest weekly down streak of 2012. The much ballyhooed Face book Initial Public Offering occurred today and by most accounts fell flat on its face. There are record low mortgage rates, but no housing recovery.

The 10 year U.S.A. Treasury bonds are the go to safe haven play at the moment, despite paying historically low rates under 2 percent. If an investment is paying under 2 percent, it has a high probability of paying a negative real rate of return (factoring in inflation). Gold historically is a safe haven play and not a risk based asset. It would not surprise many investors if Gold continued to decouple from risk assets and return to its investment roots as a protector of wealth in difficult economic times.

At 5 p.m. (EST), the APMEX Precious Metals prices were:

• Gold, $1,593.30, Up $16.90.
• Silver, $28.74, Up $0.65.
• Platinum, $1,456.00, Up $0.60.
• Palladium, $605.00, Down $2.90.

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.

Mid-Day Gold & Silver Market Report 5/18/2012

Fri, 18 May 2012 12:01:00 -1100

PRECIOUS METALS ON THE RISE; CHINA, GREECE WORRY INVESTORS  

Precious Metals prices are on the rise following this morning’s trends. The Gold price in particular is increasing, based on speculation the Federal Reserve may announce further stimulus to give the U.S. economy a healthy boost. Investors are reacting to the assumption by purchasing Gold as a hedge against inflation. Edel Tully at UBS AG in London said, “To see a return of Gold reacting positively to macro stresses is indeed refreshing, but it is still far too early to make any firm conclusions from here that Gold has indeed turned the corner. Follow through buying will have to kick in to encourage investors to jump in.” 

Marc Faber, the editor and publisher of the Gloom, Boom and Doom report, spoke with CNBC regarding China, the second largest economy in the world, experiencing a possible slowdown and how that would affect prices of industrial commodities. Faber said he thinks the unforeseen troubles in China are worse than those in Greece. He said, “I think the biggest risk is actually China because, if you look at Greece, it’s an insignificant economy. Yes, they owe money, but the market knows that it’s bankrupt.”

The eurozone crisis continues and appears it will not be settled anytime soon. Germany has stepped in and assisted the eurozone through its predicament by preventing any type of recession, but it may feel repercussions soon. Jennifer Mckeown at Capital Economics said, “With the situation in Greece edging close to crisis point and demand from outside the eurozone slowing, we expect the IFO measures of current activity and expectations to have fallen this month … a decline this month may well be a sign of things to come.”

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

• Gold: $1,588.60, Up $12.20.
• Silver: $28.70, Up $0.60.
• Platinum: $1,457.40, Up $2.00.
• Palladium: $605.80, Down $2.10.

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.

Morning Gold & Silver Market Report 5/18/2012

Fri, 18 May 2012 08:13:00 -1100

GOLD RISING FOR SECOND DAY; G8 CONFERENCE SET TO START  

Gold and Silver continue their trek higher this week as prices are on the rise this morning. The economic factors still loom large in regards to the eurozone debt crisis. Analyst Bayram Dincer said, “In this multi crisis environment, we are seeing a change in attitude towards risk in Gold, so we are very optimistic. … We got to the point where the year to date performance was zero, and from a risk perspective people started to recognize that this was somewhere with lower risk compared to other asset classes.” In a note to investors, UBS wrote, “Yesterday, Gold defied a stronger dollar, weaker equities, and another raft of negative EU headlines (to rise). It felt like the Gold market of yesteryears.”

There are confirmed reports that contingency plans are in the works should Greece leave the eurozone. There had been plenty of speculative thought that this was happening but never confirmed. In an interview, European Union trade commissioner Karel De Gucht confirmed those feelings when he said, “A year and a half ago, there maybe was a risk of a domino effect. … But today there are, in the European Central Bank as well as in the commission, services working on emergency scenarios if Greece shouldn’t make it. A Greek exit does not mean the end of the euro, as some claim.” The more severe the backlash to austerity measures, the more likely Greece is viewed to leave the eurozone. Although contingencies are being put in place, the perceived future still has Greece in the eurozone. An ECB spokesman said, “There are many, many questions arising and many questions open about Greece, and most answers have to come from Greece, and we have to respect the ongoing political process. … Clearly, the future of Greece is in the eurozone. We are working on that.”

The Group of Eight summit, which is set to begin today, is most likely to focus on what European leaders are doing to curtail the speculation of a Greek exit and fears surrounding Spanish banks. London based trader Jonathan Plant said, “We are potentially reaching a sentiment bottom but also an hour of reckoning. … European leaders must address whether it is time to extend quantitative measures or facilitate debt write downs.” The speculation surrounding Greece’s exit has basically removed about $4 trillion dollars from global markets.

At 9:10 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold: $1,589.90, Up $13.50.
• Silver: $28.42, Up $0.32.
• Platinum: $1,460.00, Up $4.60.
• Palladium: $607.30, Down $0.60.

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.

Closing Gold & Silver Market Report – 05/17/2012

Thu, 17 May 2012 16:02:00 -1100

GOLD CLOSES HIGHER TO END 4-DAY LOSING STREAK  

After closing lower for four consecutive trading days, Gold prices rebounded today after hitting a 10-month low.

Oil prices continued to decline today, providing some welcome relief to American consumers. “We had soft economic data and European concerns weighing on equities, and oil is being pulled along lower,” said Jason Schenker, president of Prestige Economics LLC. “Elevated concerns about the European story and disappointing U.S. economic data have been the story for two weeks now.”

Moody’s is set to announce downgrades of several Spanish banks this evening. According to a source with knowledge of the issue, the key reasons for the downgrades are rising loan defaults, a renewed recession, restricted funding access and the reduced ability of the government to support lenders. The Spanish newspaper El Mundo reported Wednesday that customers of the Spanish bank Bankia SA had withdrawn more than 1 billion euros from the bank since the government announced it was taking over the bank May 9. Bankia SA and the Spanish government denied that a bank run was under way, but markets hammered Bankia’s share price nonetheless.

Ahead of tomorrow’s Group of Eight summit at Camp David, President Barack Obama is urging European powers to ease austerity policies and adopt a growth strategy. The newly elected president of France, François Hollande, is expected to support Obama’s argument. Hollande defeated incumbent Nicolas Sarkozy by campaigning against austerity measures, which are deeply unpopular in some European countries.

At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold – $1,575.20 – Up $37.10.
• Silver – $28.08 – Up $0.80.
• Platinum – $1,454.00 – Up $19.80.
• Palladium – $604.00 – $7.90.

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.

Mid-Day Gold & Silver Market Report – 05/17/2012

Thu, 17 May 2012 12:17:00 -1100

GOLD GETS PHYSICAL; DOLLAR CONTINUES GAIN  

Precious Metals prices have rebounded strongly across the board today as the recent price drop has attracted physical buyers. While the uncertainty in Greece continues to put pressure on the euro, the coming expiration of Gold options on the COMEX is helping lift prices as well. “Since yesterday, we have seen more interest come through from physical buyers … because prices have come down substantially,” said Afshin Nabavi at MKS Finance. “But there is more upside than downside risk for Gold at the moment as the political situation is very jittery with tension in Iran and economic problems especially in the eurozone. People will want to buy physical Gold again.”

While the Spanish government denied a run on deposits at Bankia SA, Spanish banks across the board are looking at having their credit ratings downgraded by Moody’s later today. People familiar with Moody’s plan indicate that growing loan defaults and the reduction in the ability of the government to support lenders are some of the driving factors in the downgrade.

The American dollar has marked its 14th day of positive gains as the turbulence continues to grow around Greece and Spain. This marks the longest stretch since 1985, however the dollar has moved off its high today based on poor manufacturing data for the Philadelphia region. This drop in manufacturing could be seen as a sign that the economy is slowing, and could prompt the Federal Reserve to take action. “As long as the Fed is not expanding its balance sheet the inflation scare surrounding unorthodox actions will be seen to be exaggerated,” said Alan Ruskin at Deutsche Bank. “There is a pretty good chance that any further Fed action based on a weaker economy will not involve balance-sheet expansion. I also expect that the euro story will soon be back in the headlines trumping any U.S. data story, and this will remain at its core dollar-positive,” he said.

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

• Gold – $1,578.10 – Up $40.00.
• Silver – $28.26 – Up $0.99.
• Platinum – $1,455.60 – Up $21.40.
• Palladium – $607.00 – Up $10.90.

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.

Morning Gold & Silver Market Report – 5/17/2012

Thu, 17 May 2012 08:06:00 -1100

METALS REBOUND; ECB SENDS MESSAGE TO GREECE  

Precious Metals prices are rebounding this morning, even as American stock futures are recouping losses following the jobless claims report. The report showed that claims held steady with last week’s revised figure of 370,000 new claims filed. The four-week moving average, however, fell slightly; the moving average is typically seen as a more accurate gauge of trends.

The European Central Bank seems to be sending a message to Greece: Continue with austerity, or else. The ECB cut four Greek banks from liquidity-providing operations in response to the political turmoil in the country, where election battles have revolved around whether to keep up austerity measures or abandon them (and, by extension, abandon the eurozone). Jose Manuel Barroso, president of the European Commission, said, “We want Greece to remain part of the family of the European Union and of the euro. This being said, the ultimate resolve to stay in the euro area must come from Greece itself.”

At a recent bond auction, Spain saw its borrowing costs spike following news of a new recession in that country. Richard McGuire of Rabobank said, “This fits the pattern of recent sales, with the Spanish treasury successfully getting its supply away, but at ever-higher yields.” Borrowing costs in Spain are at the highest levels since the start of the euro.

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

• Gold – $1,556.50 – Up $18.40.
• Silver – $27.85 – Up $0.57.
• Platinum – $1,450.70 – Up $17.40.
• Palladium – $603.50 – $8.40.

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.

Closing Gold & Silver Market Report – 5/16/2012

Wed, 16 May 2012 16:20:00 -1100

FED REMAINS OPEN TO EASING; GREEK BANKING COLLAPSE POSSIBLE  

Precious Metals prices are down on technical selling, and stock markets also are down, as fears of a Greek exit from the euro increase. Those fears are so pronounced that in certain circles it has been given the moniker “Grexit.” Those fears have investors shifting their assets into the United States dollar. Robin Bahr said, “Clearly, with people staring into the abyss, it could (fall) $50 or even $100 lower as it washes out. That is the unpredictability of it all, and as equities fall, as the Greeks take money out of the banks and the banking sector collapses, I suppose you’d have to be wary of further price falls just to cover for losses in other markets.”

The minutes for April’s Federal Open Market Committee meeting were released to the public this afternoon, showing the hope of quantitative easing is not overly diminished. Quantitative easing has been good news for Gold in the past. Stagnation or declines in economic data would be a clear indicator for a number of policy-makers that further easing is needed. The FOMC policy-makers basically “indicated that additional monetary policy accommodation could be necessary if the economic recovery lost momentum or the downside risks to the forecast became great enough,” according to the minutes. A couple of risk indicators are Europe’s debt crisis and failure of American lawmakers to agree on a budget. Roberto Perli said, “It is easy to see how downside risks to the forecasts could become large because you have Europe, which could hit in the near term, and you have a U.S. fiscal cliff as we approach the end of the year.”

The Greek banking sector continues to feel the economic pinch as the European Central Bank has stopped doing business with some banks it suspects are insolvent. The news fanned the flames of worry that Greece will have to leave the eurozone. The news helped push the euro lower. Greek citizens are pulling their money out of banks, as well. The ECB only does business with solvent banks. According to an unidentified source, “As recapitalization wasn’t in place, the ECB stopped monetary policy operations. … Once the recapitalization process is finalized, and we expect this to be finalized soon, the banks will regain access to standard Eurosystem refinancing operations. The ECB/Eurosystem (of eurozone central banks) continues to support Greek banks.”

At 5:15 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold – $1,541.90 – Down $16.70.
• Silver – $27.33 – Down $0.83.
• Platinum – $1,435.90 – Down $11.60.
• Palladium – $592.90 – Down $9.20.

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.

Mid-Day Gold & Silver Market Report – 05/16/2012

Wed, 16 May 2012 12:06:00 -1100

GOLD, COMMODITIES FEELING PRESSURE; GREEK BANKERS WORRIED  

Greek turmoil has pushed Gold prices down for a fourth straight day. Industrial commodities such as copper and oil also are under pressure from the rising dollar. With growing fears over Greece’s possible exit from the euro and over the debt crisis facing the remaining European nations, investors increasingly are shifting assets to the United States dollar. “It’s difficult to see a turnaround just yet. There will be one, but I don’t think this is the time, just when we are in the eye of the storm,” Societe Generale analyst Robin Bhar said.

The ongoing uncertainty in Greece has led to a near run on financial institutions, with Greeks withdrawing nearly 700 million euros. George Provopoulos, head of the Greek central bank, told President Karolos Papoulias that many institutions are worried about their survival and that the situation could get worse. “Provopoulos told me that of course there’s no panic, but there’s great fear, which can evolve into panic,” the president said. Banks in downtown Athens were open today for business as usual.

Improvements in the job market and implementation of tighter lending standards have pushed the American mortgage delinquency rate to its lowest level since 2008. “Delinquencies are clearly continuing to improve,” said Michael Fratantoni of the Mortgage Bankers Association. “Newer delinquencies, loans one payment past due as of March 31, are down to the lowest level since the middle of 2007, indicating fewer new problems we will need to deal with in the future.”

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

• Gold – $1,542.70 – Down $15.90.
• Silver – $27.54 – Down $0.62.
• Platinum – $1,434.30 – Down $13.20.
• Palladium – $595.00 – Down $7.10.

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.

Morning Gold & Silver Market Report – 5/16/2012

Wed, 16 May 2012 08:01:00 -1100

GOLD PRICE AWAITS FED ACTION; GOLDMAN SACHS PREDICTS RISE

Precious Metals have extended their price decline this morning, and Bill Greiner of Mariner Wealth Advisors said that it has much to do with the Federal Reserve.  “It’s highly possible that we’ll see Gold and commodities in general continue to drift down until the Fed steps in with some sort of quantitative easing package.”  In the past, Gold and other Precious Metals have greatly benefited from quantitative easing.  Goldman Sachs’ commodity research team wrote that the Fed is likely to start another round of easing in June. 

Likewise, Hussein Allidina of Morgan Stanley wrote that the European Central Bank will be forced to print money to attempt to alleviate some pressure of the eurozone debt crisis.  Morgan Stanley predicts an average price for Gold of $1,825 this year and $2,175 in 2013.  With prices well below those targets, they are predicting that Gold will spend a portion of the year well above those prices to balance it out.

American stock futures are up slightly after housing reports showed that new homes are being built at a quicker pace than expected.  March’s numbers were revised sharply upward, and April’s numbers still showed improvement.  However, permits for new construction, seen as a gauge of future demand, are down.

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

• Gold – $1,541.10 – Down $17.50.

• Silver – $27.50 – Down $0.66.

• Platinum – $1,430.10 – Down $17.40.

• Palladium – $596.00 – Down $6.10.

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.

Closing Gold & Silver Market Report – 5/15/2012

Tue, 15 May 2012 16:04:00 -1100

EURO TUMBLES AS GREEKS WILL HEAD BACK TO POLLS  

After weeks of infighting and deadlock among Greek politicians, party leaders declared their inability to form a unified government. The nation will return to the voting booth to reshuffle the deck again in an election that will essentially amount to a referendum on whether  Greece should drop the euro as its currency or continue a path of fiscal austerity. The election is expected to be scheduled for June 10 or June 17. The euro tumbled to a four-month low against the American dollar on the announcement, which drove Precious Metals prices down. “If Greece — and this is the will of the great majority — wants to stay in the euro, then they have to accept the conditions,” said German Finance Minister Wolfgang Schaeuble. “Otherwise, it isn’t possible. No responsible candidate can hide that from the electorate.”

Wall Street posted losses today on European fears, despite cautiously optimistic news about the American economy. “The economy continues to grow at a decent clip, but there are still a lot of risks coming from overseas,” said Omair Sharif, an economist at RBS. Signs of growth could be seen today in retail data, showing that retail sales are growing (albeit at a reduced rate than the past few months) with an overall gain of 0.1 percent. Lower gasoline prices may boost consumer spending by freeing up household incomes for discretionary spending. The core Consumer Price Index, the inflation index most used by the Federal Reserve, rose 0.2 percent, which reflects an annualized rise in prices of 6 percent.

At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold – $1,545.30 – Down $17.20.
• Silver – $27.77 – Down $0.65.
• Platinum – $1,433.30 – Down $10.30.
• Palladium – $596.00 – Up $0.20.

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.

Mid-Day Gold & Silver Market Report – 5/15/2012

Tue, 15 May 2012 12:02:00 -1100

GOLD’S PRICE FAVORS CONSUMERS; AMERICAN DOLLAR STRONGER  

As we have seen over the past two weeks, the Precious Metals market has seen a price decrease. There have been many global factors affecting the market. The lower market has not gone unnoticed by investors. Demand from major Asian consumers is strong. “Refiners can’t deliver immediate Gold because there’s a sudden surge in demand. We’re seeing demand from India, Thailand and Indonesia,” a physical dealer in Singapore said.  

China’s inflow of investment has dropped in the first four months of the year. These numbers could show a negative outlook for one of the world’s largest economies. “We believe the negative trend reflects concerns over China’s lower growth potential, lack of confidence in the global growth outlook, and poorer access to funding from deleveraging banks,” said Dariusz Kowalczyk, senior economist at Credit Agricole-CIB. The trade market has been affected by global economic woes, especially in Europe.

Another month has come and gone, and the American economy is keeping up a steady climb. With retail sales up, lower gasoline prices and the fall of the euro, the U.S.A. dollar is strong. The economy keeps rolling along,” said Chris Rupkey, chief financial economist at Bank of Tokyo Mitsubishi UFJ in New York.

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

• Gold – $1560.00 – Down $2.40.
• Silver – $28.14 – Down $0.28.
• Platinum – $1448.10 – Up $4.50.
• Palladium – $602.30 – Up $6.40.

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.

Morning Gold & Silver Market Report – 5/15/2012

Tue, 15 May 2012 08:03:00 -1100

EUROZONE FEARS PERMEATE PRECIOUS METALS MARKET  

Precious Metals prices remained relatively steady in overnight trading. Physical demand and better-than-expected German economic data helped maintain prices overnight, but concerns continue over Greece’s role and whether it will stay in the eurozone, adding to the volatile currency market. In a note to its customers, broker Marex Spectron said, “When German GDP came in at 0.5 percent, a lot higher than expected, the subsequent rally in the euro gave rise to a quick 10-dollar short covering rally in Gold.” However, Gold’s rebound is seen as a likely scenario. Analyst Pradeep Unni said, “(Gold’s) safe-haven status has been tarnished. … It will wobble on the euro’s weakness, but in a very short term, bargain hunting and pent-up demand will emerge, taking it higher.”

The push for austerity in Greece remains in place regardless of pleas from Alexis Tsipras, who boycotted a bargaining meeting yesterday in support of his views. The talk of Greece leaving the euro is not viewed as a realistic option. However, the failure of the Greek government to form a unity government after its most recent elections continues to adversely affect European markets. London-based economist Marchel Alexandrovich said, “The euro breakup story is gathering steam again. … If Greece were to ever exit the euro, no amount of reassuring comments will convince investors that other countries won’t soon follow.”

Francois Hollande is to be sworn in as France’s president later today. Once sworn in, he is expected to fly to Germany to meet with Chancellor Angela Merkel for the first time. The meeting will be closely monitored due to their disparate views and Merkel’s very public support of Hollande’s challenger Nicolas Sarkozy. Economist Carsten Brzeski said, “In our view, what currently looks like a clash between growth-fanatics and austerity-fetishists will eventually end in a good European compromise with something for everyone: The fiscal compact and the medium-term goal of balanced budgets should remain intact, but complemented by a new growth compact with European funds and initiatives.” Political analyst Erwin Grandinger said, “I think it’s the first kick-off meeting to repair personal relations between Hollande and Merkel. Merkel had done something extremely unusual. She took sides in the presidential elections.” Hollande has supported pro-growth sentiments, while Merkel has had a pro-austerity position.

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

• Gold – $1,559.90 – Down $2.50.
• Silver – $28.28 – Down $0.14.
• Platinum – $1,450.40 – Up $6.80.
• Palladium – $603.50 – Up $7.60.

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.

Closing Gold & Silver Market Report 5/14/2012

Mon, 14 May 2012 15:52:00 -1100

POLITICAL TURMOIL IN GREECE SUGGESTS POSSIBLE EURO EXIT

Gold has erased all of its gains earned in 2012, thanks to the current financial situation in Europe. The eurozone’s economic and political crises haves been affecting global markets during the past week. “Worries about Europe are pushing people to the dollar,” said Frank McGhee at Integrated Brokerage Services LLC.  

The Greek election has left many people concerned that the nation may exit the eurozone, which in turn would create a catastrophe for the financial market. “I think for as long as the crisis in Europe drags on, it’s going to keep sentiment broadly in check. At the moment, Gold has been painted with the risk brush. It’s going to be very much a tracker of the equity markets,” said Nick Trevethan, a senior commodity strategist at ANZ in Singapore. Economists at Citi have predicted the likelihood of Greece leaving the euro at between 50 and 75 percent. Billionaire investor George Soros said, “The euro is seriously at risk. The consequences of a non-controlled implosion risks to be disastrous.”

Oil prices have continued to drop to the lowest level in almost five months due to Europe’s fiscal crisis and on words from Saudi Arabia’s oil minister, who made it clear that prices could decline even more. “Greece is unable to form a coalition government, and Europe is the biggest problem right now,” said Tom Bentz, a director with BNP Paribas Prime Brokerage Inc. “When the Saudis speak, the market tends to listen. They’ve been trying to talk down the market for a while.”

At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold – $1557.80 – Down $27.70.
• Silver – $28.19 – Down $0.78.
• Platinum – $1439.10 – Down $33.30.
• Palladium – $591.00 – Down $13.30.

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.

Mid-Day Gold & Silver Market Report – 5/14/2012

Mon, 14 May 2012 12:03:00 -1100

GOLD’S LONG-TERM ENDURANCE TOUTED; AMERICA RECORDS BUDGET SURPLUS  

The Gold price has dropped to a low not seen since 2008. When this happened in the past, it made investing in the Precious Metal a great opportunity. The short-term outlook does not seem to show much change, as long as the situation in Europe continues and the United States’ economy keeps moving upward. However, “On a long-term basis, Gold has a place in most investment portfolios for two reasons: We foresee demand returning from emerging markets, and more and more investors buy Gold as a hedge against inflation,” said Sanjeev Sardana, financial adviser and chief executive officer of Bluepointe Capital Management.

The 13-year stretch of growth in China seems to be losing momentum. Reports of China’s industrial production and retail sales missing forecasted numbers are major factors. The People’s Bank of China is adding about 400 billion yuan into the banking system by cutting reserve requirements. The current interest rates have also raised concerns. “Chances of an interest-rate reduction are still small at the moment,” said Lu Ting, a Hong Kong-based economist.

Something happened in the United States for the first time since 2008. In April, the Treasury Department recorded a $59 billion surplus. Even with this good sign, it is not expected to last. The Treasury is facing a $1.33 trillion deficit for 2012. It is less than last year’s number, but far from positive enough to give investors the confidence they need.

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

• Gold – $1562.40 – Down $23.10.
• Silver – $28.38 – Down $0.59.
• Platinum – $1444.40- Down $28.00.
• Palladium – $595.10 – Down $9.30.

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.

Morning Gold & Silver Market Report – 5/14/2012

Mon, 14 May 2012 08:20:00 -1100

GOLD DROPS TO 4.5-MONTH LOW ON FALLING EURO  

The European debt crisis continues to cause more and more concern, especially after the political deadlock in Greece over the weekend. Gold prices have been moving in tandem with riskier assets for much of the past year, and this European economic uncertainty is fueling movement away from riskier assets. In the end, the same phenomenon is driving Gold prices down. “Gold is under severe pressure. The U.S. dollar is being seen as a safe haven at the moment, and as long as the dollar is appreciating against the euro, this is clearly weighing on the Gold price,” said Daniel Briesemann, an analyst at Commerzbank.

Greece cannot decide whether it will support or oppose the 130 billion-euro bailout offered by the European Union and International Monetary Fund. The roadblock began with May 6 elections, in which Greek politicians came up equally divided on this issue. Greek President Karolos Papoulias had not gained support over the weekend or today, which is reinforcing the view that Greece is heading for bankruptcy and an exit from the eurozone. If a compromise cannot be reached between the two parties, then there will be no choice but to call for another election.

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

• Gold – $1,563.10 – Down $22.40.
• Silver – $28.57 – Down $0.39.
• Platinum – $1,451.40  – Down $2.00.
• Palladium – $603.00 – Down $1.40.

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.

Closing Gold & Silver Market Report – 5/11/2012

Fri, 11 May 2012 15:50:00 -1100

GOLD, SILVER PRICES FALL INTO WEEKEND  

Uncertainty. We are in the middle of one story after another that makes an investor wonder which side is up. JPMorgan reported $2.2 billion in losses. Chesapeake Energy continues to get hammered after questionable acts by its chief executive. No wonder we live in a time of lacking trust. David Darst, chief strategist at Morgan Stanley, spoke of this investor lack of confidence in the stock market when he said, “They have lost faith and trust in politics, and they have lost faith and trust in the political powers in Washington.” Jeremy Siegel, a Wharton finance professor, cannot understand why people are running to 10-year government bonds when the guaranteed low yield guarantees a loss in purchasing power. It makes no sense that United States Treasuries are considered a safe haven. It might make no sense that Gold and Silver prices are going down.

Why is Gold and Silver down? The same old story. The euro looks so bad that the Unites States dollar looks good. U.S. Sen. Tom Coburn of Oklahoma, speaking on CNBC, called the American dollar the least wilted flower in the vase. No one can know for certain where the price of Gold or Silver might go. But looking at the past, it seems uncertainty is often very fertile ground.

Have a great weekend!

At 5 p.m. (EST), the APMEX Precious Metals prices were:

• Gold – $1,581.80 – Down $15.20.
• Silver – $28.94 – Down – $0.30.
• Platinum – $1,466.30 – Down $28.50.
• Palladium – $604.10 – Down $12.20.

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.

Mid-Day Gold & Silver Market Report – 5/11/2012

Fri, 11 May 2012 12:02:00 -1100

GOOD NEWS FOR GOLD; PIMCO CALLS FOR QE3  

Good news for Gold prices surfaced when a survey conducted by Bloomberg showed that 14 of 32 analysts anticipate prices to gain next week. The Gold price is currently being affected by the political uproar in Europe, which is pushing the euro down, and positive American economic news, which is strengthening the dollar. “When the market gets very nervous, then they buy dollars, and Gold finds it difficult to rally,” said Jesper Dannesboe, an analyst at Societe Generale SA in London. “Given what’s going on in the markets at the moment, any rally will probably just be a bounce before another setback.”

The prediction is that when the Federal Reserve meets again in June, there will be an announcement about further monetary easing. Bill Gross, who runs PIMCO’s Total Return Fund, wrote Thursday on Twitter, “A decision to buy more debt is getting closer.” Gross was referring to the Federal Reserve possibly purchasing additional bonds to counter a sluggish United States economy. Jan Hatzius at Goldman Sachs Group Inc. said, “In such an uncertain environment, taking out a bit more insurance still looks like the sensible choice for American monetary policy-makers. We have stuck with our forecast of some additional monetary easing,” referring to the Fed’s policy meeting June 19 and 20.

China’s economy appears to show an unexpected slowdown in output data for April, with lower retail sales and easing prices. Both industrial output and fixed asset investment growth fell below their lowest points in some time. Alistair Thornton, an economist with IHS Global Insight in Beijing, believes a structured plan should be developed to promote growth for the economy. Thornton said, “The government has attempted to revive the economy through largely passive means, but that strategy appears to be failing. A more assertive monetary policy is now needed.”

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

• Gold – $1,588.00 – Down $9.00.
• Silver – $29.08 – Down $0.16.
• Platinum – $1,475.90 – Down $18.90.
• Palladium – $603.80 – Down $12.60.

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.

Morning Gold & Silver Market Report – 5/11/2012

Fri, 11 May 2012 08:04:00 -1100

JPMORGAN LOSS ROCKS FINANCIAL MARKETS   

Precious Metals prices were down in morning trading, largely on technical selling to cover positions, as financial stocks are reeling over the reported loss by JPMorgan. Speaking about Gold, Phillip Futures analyst Lynette Tan said, “The increase we saw yesterday was a bit of bargain hunting from a three-day losing streak.” However, other Precious Metals, such as Platinum and Palladium, are viewed as good investments at this time. In a note to its investors UBS wrote, “After some sizeable price declines, we can’t help thinking that both Platinum and Palladium look like good value here.”

In a financially shocking bit of news JPMorgan has reported a potential $2 billion loss from a failed hedging strategy. The dollar amount is not the shocking part; more shocking are the parties involved: Chief Executive Jamie Dimon and the normally risk-averse financial institution JPMorgan. Nancy Bush said, “Jamie has always styled himself as one of the kings of Wall Street. I don’t know how this went so bad so quickly with his knowledge and aversion to risk.” Analyst Todd Hagerman said, “It’s a pretty stunning admission for a company that prides itself on its risk management systems and the strength of its balance sheet. The timing couldn’t be worse for the industry. It will have ramifications across the broker-dealer community.” Dimon said, “It could cost us as much as $1 billion or more. It is risky, and it will be for a couple quarters.” He added, “This puts egg on our face.” JPMorgan has been viewed as a very safe financial institution, considering it was one of the only companies to not post a loss from the 2008 financial collapse.

JPMorgan’s admission has caused stock markets to open much lower. By assets alone, JPMorgan is the nation’s biggest bank. Investment officer Walter Todd of Greenwood Capital said, “It’s a black eye for JPMorgan,” said Michael Shaoul, Marketfield Asset Management’s chairman. “It was considered to be one of the better big banks. … JPMorgan will be in a weaker position.” However, American banks still are viewed as being much more liquid than their global counterparts. Billionaire investor Warren Buffett said, “I would put European banks and American banks in two very different categories. The American banking system is in fine shape. The European system was gasping for air a few months back.”

At 9:02 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold – $1,583.80 – Down $12.50.
• Silver – $28.70 – Down $0.53.
• Platinum – $1,468.40 – Down $26.40.
• Palladium – $603.60 – Down $12.80.

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.

Closing Gold & Silver Market Report – 05/10/2012

Thu, 10 May 2012 16:33:00 -1100

GOLD SNAPS SLIDE  

Precious Metals were looking to close the day mixed, with Gold snapping a three-day losing streak. Easing concerns over the Spanish debt market and Greece securing funds needed for bond payments strengthened the euro. Hopes of more American monetary easing are fading after a run of positive economic data. “Gold has behaved closer to risky assets rather than differentiating itself as a safe-haven asset and has been winded by the possibility of further quantitative easing being scaled back,” said Suki Cooper at Barclays Capital.

At a fund-raiser in Seattle, President Barack Obama said that Europe’s economic difficulties are partly because Europe did not take many of the steps the United States did. “We’ve still got headwinds. Europe is still … in a difficult state, partly because they didn’t take some of the decisive steps that we took early on in this recession,” Obama said at the event. “Gas prices are still pinching a lot of folks. The housing market is still very weak across the country. But the good news is that we have weathered the storm,” he said.

At 5 p.m. (EDT), the APMEX Precious Metal spot prices were:

• Gold – $1,594.70 – Down $0.50.
• Silver – $29.10 – Down $0.19.
• Platinum – $1,488.10 – Down $12.10.
• Palladium – $615.00 – Up $0.40.

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

Mid-Day Gold & Silver Market Report – 5/10/2012

Thu, 10 May 2012 12:02:00 -1100

ANOTHER GREEK VOTE LIKELY; GOLD STEADY  

Precious Metals remained relatively steady through the morning. The strength of the United States dollar continues to affect prices, as well as the lingering eurozone debt crisis. Sharps Pixley’s Ross Norman said, “At this particular moment, Gold is telling us the economic crisis in Europe has had a seismic shift. The fact that Gold has collapsed is not surprising. It’s adhering to its relationship with the U.S. dollar. What happens with these seismic shocks is that (Gold) doesn’t do the safe-haven thing; it does the dollar thing.” In a note to investors, RBS wrote, “The safe-haven trade is still in the backseat, and Gold remains positively correlated with risk assets and pressured by a strong U.S. dollar.”

Greece is looking at yet another election in the next few weeks as governmental consensus is not taking place. The head of Greece’s Radical Left Coalition, Alexi Tsipras, was not able to form a unity government this week, opening the door for the new elections. The issue is not about not getting a unity government formed, it’s the fact that Tsipras is viewed as the next prime minister, so his beliefs are significant. In Greece, the austerity measures are known as “the memorandum” which Tsipras opposes. He expressed his views recently when he said, “I fully disagree with what is at heart of the memorandum. … Further austerity will make us a Third World country in the EU.”

Spanish banks are taking a cue from Ireland as concerns are mounting that bank losses are not being accounted for properly. Spain is trying to avoid outside assistance, in the form of a bailout, but many analysts have concerns that Spain will not be able to avoid a bailout. London-based analyst Patrick Lee said, “How can you only talk about one type of real estate lending when more and more loans are going bad everywhere in the economy? Ireland managed to turn its situation around after recognizing losses much more aggressively and thus needed a bailout. I don’t see how Spain can do it without outside support.”

At 1:01 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold – $1,597.00 – Up $1.80.
• Silver – $29.29 – Even.
• Platinum – $1,494.50 – Down $5.70.
• Palladium – $616.50 – Up $1.90.

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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