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Weekly Market Recap 11/13/09

11/13/2009 03:04:00 PM, Posted by APMEX, No Comment

Gold continued its jump to new all-time highs this week as the U.S. Dollar was down against a basket of six major currencies. The G-20 finance ministers remained silent over the weekend about the U.S. Dollar’s 7% decline so far this year. The G-20 meeting did announce that they agreed to keep stimulus measures in place, as the global economy is still too weak, especially in the United States and in Europe.

Gold saw another upward price surge mid-week when the U.S. Dollar traded at 15-month lows according to Market Watch. Investors turned to Gold as a hedge against inflation as the U.S. Dollar slumped lower and prospects in the job market looked bleak. Contributing to the U.S. Dollar slump was China’s third quarter monetary policy report. The People’s Bank of China said on Wednesday it would consider major currencies, not just the Dollar, in guiding future exchange rates. These comments came days before President Obama’s visit to the region.

U.S. investment bank Goldman Sachs released a statement proclaiming Gold could rise to new record highs of $1,150.00 to $1,200.00 per ounce due to renewed buying of the precious metal by central banks. “The purchase by India (200 metric tons of Gold from the IMF) highlights the growing trend of central banks and governments in the emerging economies to increase gold holdings as a means of diversifying their currency reserves,” Goldman said.

The weakness in the U.S. Dollar has also created a bubble in the oil industry. Ethan Harris, head of global economics at Bank of America Merrill Lynch in New York said “What are the things that could derail the recovery? I think that an oil price bubble is near the top of the list.” Savvy investors will pay close attention to developments in the coming weeks to determine how heavily Gold should weigh in their portfolio.

Spot Gold prices opened this week at $1,108.40. The high during the week was on Thursday, November 12th, at $1,123.40, while the low for the week was on Monday, November 9th at $1,096.00. Gold ended the week with a gain of $9.30 at $1,117.70. This week, 2009 1/10 oz. Gold American Eagles, 2009 1 oz. BU Gold American Eagles, 1 oz. .9999+ Fine Pamp Suisse Bars and 2009 1 oz. Gold Canadian Maple Leafs were in high demand at

Spot Silver prices opened this week at $17.71. Silver reached a high of $17.78, on Thursday, November 12th. The low for silver occurred on Friday, November 13th at $17.02. Silver ended the week down $0.31 at $17.40. This week 2009 1 oz. Silver American Eagles, 2010 1 oz. Canadian Silver Maple Leafs, Sunshine Mint 1 oz. .999 Fine Silver Rounds and 1 oz. .999 Fine Silver Buffalo Rounds were popular with silver investors.

Spot Platinum prices opened this week at $1,349.00, and ended the week up $40.70, at $1,389.70. Popular platinum products for this week included 1 oz. Pamp Suisse Platinum Bars, 10 oz. Pamp Suisse Platinum Bars, and 2009 1 oz. Platinum Canadian Maple Leafs.

Spot Palladium prices opened this week at $332.00, and ended the week up $25.80 at $357.80. 2009 1 oz. Palladium Maple Leafs, 1 oz. Pamp Suisse Palladium Bars and 10 oz. Pamp Suisse Palladium Bars were popular items purchased by palladium investors.

As the price of Gold continues to reach all-time highs, APMEX continues to offer a vast selection of premium Pre-1933 Gold coins in addition to its already expansive Gold bullion selection. As the spot price of Gold continues to rise, investors and collectors alike are still clamoring for more of the yellow metal. Several Wall Street analysts are predicting the spot price of Gold may soon hit $1,200.00 to $1,500.00 per ounce. It was just 3 short months ago that Gold was hovering around $920.00 per ounce.

Though Gold has seen tremendous growth in the last few months, Silver has slowly crept toward the $20.00 per ounce plateau yet again. Many investors were buying strict Silver bullion items , but now they are also buying Cull Silver Dollars and an assortment of other dollars including Pre-1921 Morgan Silver Dollars in Almost Uncirculated condition, Peace Silver Dollars in Very Good to Very Fine condition, and Peace Silver Dollars in Brilliant Uncirculated condition. Keep in mind that these are just highlights of what has been selling well. Nearly all Silver Dollars have seen a spike in popularity.

For the past few weeks APMEX has been highlighting the Morgan Silver Dollar Series. This week we will shift gears and discuss the Peace Silver Dollar series: namely the 1923-D. The 1923-D Peace Silver Dollars typically come well struck with above average luster. These coins are commonly seen with unusual die cracks throughout the obverse and reverse as the pressure for striking these coins was greater than normal. Many VAM’s attributed to this date directly correlate to these die breaks. 1923-D’s, though they have a high mintage, or perhaps because of it, are plagued with a tremendous amount of bag marks which make this year nearly impossible to find as a flawless Gem quality specimen. Even those coins that have received an MS-65 grade may still have contact marks that are often times unsightly. 1923-D Peace Dollars are considered scarcer than most of the other dates in the 24 coin series in uncirculated condition. When purchasing a 1923-D Peace Dollar, always try to find an example that is well struck since there were over 6 million of them minted and most come with an exceptionally strong strike.

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