Market Recap 12/11/09

The U.S. Dollar showed some improvement early in the week as the Dollar Index was up by 0.07%. That was the major catalyst that pushed both oil and precious metal prices down for the first time in recent weeks.

Federal Reserve Chairman Ben Bernanke spoke at the Economic Club of Washington late Monday, stating that we will see modest economic growth next year but at a pace slower than we would like. Giving few concrete details, he went on to discuss the careful thought going into the Fed’s exit strategy for withdrawing the unprecedented monetary stimulus dollars from the economy. Well-informed investors will keep a close watch for developments on this topic, as it will help shape market trends in 2010.

In telling remarks this week, Treasury Secretary Timothy Geithner extended the government’s $700 Billion bailout fund to October 2010, saying the economy still faces “significant challenges.” “This extension is necessary to assist American families and stabilize financial markets because it will, among other things, enable us to continue to implement programs that address housing markets, the needs of small businesses, and to maintain the capacity to respond to unforeseen threats,” Geithner said. He also warned that withdrawing programs too early could prolong the economic downturn. These statements concerning the “continued programs” and “unforeseen threats” have many investors quite nervous, anticipating the inevitable inflation that comes with such government spending.

The recent pullback in precious metal prices provides a great opportunity to add to your precious metal positions. APMEX announced this week that 2009 Fractional American Gold Eagles are now in stock and ready to ship. Visit www.APMEX.com today and stock up on gold and silver before the next rally!

Gold:
Spot Gold prices opened this week at $1,159.70. The high during the week was on Tuesday, December 8th, at $1,169.30, while the low for the week was on Friday, December 11th, at $1,108.30. Gold ended the week down $44.10 to $1,115.60. This week, 2009 1/10 oz. American Gold Eagles, 2009 1 oz. BU Gold American Eagles and 2009 ¼ oz. Gold Australian Kangaroos saw significant traffic on the APMEX.com website.

Silver:

Spot Silver prices opened this week at $18.47. Silver reached a high of $18.50 on Monday, December 7th. The low for Silver occurred on Friday, December 11th, at $16.87. Silver ended the week down $1.28 to $17.19. This week, 2009 1 oz. Silver American Eagles, 2010 1 oz. Canadian Silver Maple Leafs, 1 oz. .999 Fine Silver Sunshine Mint Rounds, and 2010 1 oz. Silver Vancouver Canadian Maple Leafs were very popular due to APMEX's Annual 12 Days of Christmas Sales Event.

Platinum:

Spot Platinum prices opened this week at $1,458.90 and ended the week down $22.00 to $1,436.90. Investors continue to snap up 1 oz. Pamp Suisse Platinum Bars, 1 oz. Platinum American Eagles and 1/10 oz. Platinum American Eagles.

Palladium:

Spot Palladium prices opened this week at $372.05 and ended the week down $8.05 to $364.00. Popular Palladium products this week included 1 oz. Random Year Palladium Canadian Maple Leafs, 1 oz. Pamp Suisse Palladium Bars and 10 oz. Pamp Suisse Palladium Bars.

Numismatics:
Since our last post, the spot price of gold has been ever-changing - driven by various world news and the strength of the U.S. Dollar. But even with all the interest from customers, APMEX continues to have a good supply of products available. But, these products are moving quickly in spite of the recent market fluctuations.

APMEX is proud to be one of the first precious metals dealers to deliver 2009 Fractional American Gold Eagle coins to our customers, as we just received them this week! In addition, the herd of Gold American Buffalo coins is currently plentiful, but the numbers are dwindling as the spot price of gold has dropped. As always, Pre-1933 U.S. Gold is very popular, especially $2.50 Quarter Eagle coins and $20 Saint-Gaudens gold coins.

The spot price of Silver has also readjusted, though not as dramatically as gold. Opportunists are taking full advantage by stocking up on their favorite bullion and numismatic items, such as the Silver American Eagles, Very Good to Very Fine Morgan Silver Dollars and Peace Silver Dollars. Holiday Silver Rounds and Bars are also very popular as gift items.

This week, as APMEX continues its series on Silver Dollars, we will be highlighting the 1895-S. This particular year and San Francisco mintmarked issue is notorious for being extensively bag-marked. As a result, high-grade examples are always in high demand, carry a premium, and are almost always found in the lower mint state range. Circulated specimens are equally hard to find, as the mintage is very low with only 400,000 pieces struck. Sometimes, lower grade examples such as an AU-55 or AU-58, may be more attractive than even an MS-60 or MS-61. If you are lucky enough to find a high-end example, be sure that it carries tremendous eye appeal and is well struck, as most mint state 1895-S’s bear these qualities. The large majority of 1895-S coins were paid out within years of their production, yet there were a few bags that were held back as late as the 1950’s. On the other hand, many higher-grade 1895-S’s are either Proof-Like or Semi-Proof-Like. Often these coins are found without toning. There are no major VAM varieties to be found for this particular year, however, the few varieties that can be located carry a small additional premium.