Market Recap 2/19/10

The mortgage market is showing some positive signs, reported CNNMoney. "We are likely seeing the beginning of the end of the unprecedented wave of mortgage delinquencies and foreclosures that started with the subprime defaults in early 2007, continued with the meltdown of the California and Florida housing markets due to overbuilding and the weak loan underwriting that supported that overbuilding, and culminated with a recession that saw 8.5 million people lose their jobs," said Jay Brinkmann, the Mortgage Banker’s Association’s chief economist.

"Gold prices pared their losses Friday as they shook off the news that the Federal Reserve raised the discount interest rate by a quarter percent to 0.75%," according to TheStreet.com. Also helping gold prices stage a comeback was the news that the core consumer price index fell 0.1% in January easing inflation expectations and worries that the Fed would raise key interest rates sooner than expected. Investors' risk appetite returned as they bought up dollar-backed commodities.

Gold’s usual relationship with the U.S. currency has weakened, as fears over the outlook for paper currencies in general lifted interest in bullion as an alternative asset, according to Reuters. "Investors are buying gold as a hedge against currencies’ volatility," said Carlos Sanchez, a metals analyst with CPM Group. "Gold seems to be consolidating near the $1,130 an ounce area."

The "I Heart APMEX" Video Contest Winners were announced this week. APMEX fans submitted some great videos, earning a large number of views, comments and ratings. "Average Joe" won the Grand Prize of a 1 oz. APMEX Gold Bar. "Chris W." took Second Place and an APMEX Silver Kilo (32.15 ounces) Bar, while "Sean T. and Family" received Third Place and a 10 oz. APMEX Silver Round. Honorable Mentions were awarded to seven entrants who will each receive a 5 oz. Silver APMEX Round, and everyone who entered but didn’t win will be receiving a 1 oz. APMEX Silver Round. We’d like to thank everyone who participated for their hard work and for their business!

Gold:
Spot gold prices opened this week at $1,093.20. The high during the week was on Wednesday, February 17th, at $1,128.10, while the low for the week occurred on Tuesday, February 16th, at $1,091.90. Gold ended the week up $26.60 at $1,119.80. This week, Gold American Eagles, 1 gram .9999 Fine APMEX Gold Bars and Canadian Gold Maple Leafs remained in the forefront of investor’s minds.

Silver:
Spot silver prices opened this week at $15.57. Silver reached a high of $16.52 on Friday, February 19th, while the low for silver occurred on Tuesday, February 16th, at $15.45. Silver ended the week up $0.80 at $16.37. This week, the most popular silver items included Silver American Eagles, 1 oz. APMEX .999 Fine Silver Rounds and Canadian Silver Maple Leafs.

Platinum:
Spot platinum prices opened this week at $1,517.90 and ended the week up $16.20 at $1,534.10. Platinum American Eagles, Canadian Platinum Maple Leafs and 1 oz. Pamp Suisse Platinum Bars were popular with platinum investors this week.

Palladium:
Spot palladium prices opened this week at $418.00 and ended the week up $27.40 at $445.40. Popular palladium products this week included 1 oz. .999 Fine Pamp Suisse Palladium Bars and Random Year 1 oz. Palladium Canadian Maple Leafs.

Featured Bullion Product:
Each week, APMEX will review a different bullion product for the benefit of our readers. This week, we will review Gold Sovereign coins.

First minted in 1489 for King Henry VII of England, the Gold Sovereign has become a symbol of the strength and wealth of the British Empire the World over. Production of these classic gold bullion coins continues today. With occasional exceptions, the design of the Gold Sovereign has consistently been the classic St. George Slaying the Dragon sculpted by Benedetto Pistrucci. This gold coin has been the world standard for the consistency and purity of its gold and for the accuracy of its weight for hundreds of years. Each Sovereign contains .2354 ounces of pure gold while the smaller half sovereign contains .1177 ounces of pure gold.

Because of the size of the former British Empire, Gold Sovereign coins have been struck in Great Britain, Canada, Australia, South Africa, India and the Isle of Man. Other countries have struck gold to a standard size and weight that matches this handsome gold coin. In many ways, the Gold Sovereign set the standard for gold world coinage.

Gold Sovereign coins belong in every investor’s portfolio!