Weekly Market Recap 12/12/08

Further near-term precious metal liquidation is possible, as investors continue to shift into cash, but it is expected that gold prices are likely to move cautiously higher in the medium to long term, as the global economy is in for a period of slow growth with an unfavorable shift in the growth/inflation trade-off. For the first time in over 20 years the spot price of Platinum fell below the spot price for Gold.

Here is a brief synopsis of the highs and lows in the market and an overview of our very popular bullion products and numismatics here at http://www.apmex.com/.

Platinum:
Spot Platinum prices opened last week at $790.20 but ended the week up at $828.60 . Investors and collectors were able to purchase Fractional 2008 Platinum Eagles, though these coins sold out in less than 12 hours. Our supply is limited, but we do have Platinum American Eagles in stock. APMEX also secured a fresh batch of new 1 oz Pamp Suisse Platinum bars. We still have some left, but these will move fast due to the recent drop in platinum spot prices.

Gold:
Spot Gold prices opened this week at $755.20. The high during the week was on Thursday December 11th, at $853.30, while the low for the week occurred on Monday December 8th at $754.10. Gold ended the week up at $824.90 . 2008 1 oz Gold Maple Leafs and Gold Bars sold out during our “12 Days of Christmas” savings event. We are expecting to receive a very limited allocation of 2008 Gold American Eagles, but these will go very quickly.

Silver:
Spot Silver prices opened last week at $9.50. Active trading pushed spot silver to a high of $10.54 on Thursday, December 10th. The low for silver also occurred on Monday, December 8th at $9.48. Silver ended the week up at $10.39 . This week, APMEX customers picked up on our phenomenal Holiday Deals, focusing great attention on new Silver Buffalo Rounds and new JM 100 oz silver bars. APMEX may be securing a few additional 2008 Silver American Eagles in the coming days as well.

Palladium:
Spot Palladium prices opened this week at $163.60 and ended the week up at $180.00 . APMEX does have a limited supply of 1 oz. and 10 oz. Palladium bars.

Numismatics:
The Houston Money Show, which is usually a reliable bellwether of the end of the year activity, did not disappoint any of the attendees. In fact, the auction results were incredibly strong. While the general economy is weak (or terrible, depending on your point of view), the auction broke many previous records, especially for copper coins. For example, a 1926-S Lincoln Cent, graded MS65 Red, sold for $106,000.00! Of the 278 coins in this particular auction consignment, 38 of the coins sold in the 5-figure territory! While many coins in some auctions are bringing record prices, several areas of the coin market are strong as well. Pre-1933 US gold coin demand shows no signs of abating. Key and semi-key Morgan Dollars are strong. But Mercury Dimes, Walking Liberty Halves, and Commemoratives are only experiencing limited price movements.