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.

Market Recap 12/04/09

Early in the week, Wall Street closely watched sales results from the first official shopping weekend of the holiday season. The National Retail Federation reported that on average, consumers spent 8% less than a year ago, confirming the fact that the recession is still affecting consumer confidence. Reuters.com reported, “Consumer spending makes up roughly 70% of the U.S. economy and (that) will determine how quickly the country can recover from a recession,” said Torsten Slok, an economist at Deutsche Bank. Additionally, the ABC News Consumer Comfort Index came in at -45 on a scale of +100 to –100, which puts the index on track for the worst year in its 23-year history. During this week, gold surged upward, hitting a new all-time high of $1,227.00 per ounce.

Late in the week, however, all precious metals prices saw an unexpected pull back, likely driven by better than expected jobless rates and a rally in the Dollar Index, according to Bloomberg. This consolidation provides a unique buying opportunity as investors look to add more gold to their positions. Many investors remain very bullish on gold due to the continued threat of significant inflation.

MarketWatch.com reported early this week, “Gold prices could hit $1,500 as global plans to rescue the financial industry are set to increase inflation pressure.” This statement was according to analysts at Merrill Lynch. "The unintended consequence of the ongoing financial bailout will be a return of inflationary pressures to the commodity markets," wrote the analysts in a note released Monday.

The APMEX “12 Days of Christmas” began on Cyber Monday, November 30, 2009. Customers are able to take advantage of great pricing and low premiums on some of APMEX’s most popular bullion products. Pay close attention to your inbox and don’t miss out on this great opportunity to save.

Gold:
Spot Gold prices opened this week at $1,178.80. The high during the week was on Thursday, December 3rd, at $1,227.00, while the low for the week was on Friday, December 4th, at $1,147.40. Gold ended the week down $16.80 at $1,162.00. This week, 2009 1/10 oz. Gold American Eagles, 2009 1 oz. BU Gold American Eagles and 2009 1 oz. Gold Buffalos sold en masse, as gold fever heated up!

Silver:

Spot Silver prices opened this week at $18.40. Silver reached a high of $19.48 on Thursday, December 3rd. The low for silver occurred on Monday, November 30th, at $18.12. Silver ended the week up $0.10 at $18.50. This week, 2009 1 oz. Silver American Eagles, 2010 1 oz. Canadian Silver Maple Leafs, and 1 oz. .999 Fine Silver Buffalo Rounds followed in the footsteps of gold, as the silver market heated up too.

Platinum:

Spot Platinum prices opened this week at $1,453.90 and ended the week down slightly at $1,448.00. 1 oz. Pamp Suisse Platinum Bars, 1 oz. BU Platinum American Eagles and 1 oz. Pamp Suisse Platinum Bars remain popular products with investors.

Palladium:

Spot Palladium prices opened this week at $371.00 and ended the week up $5.00 at $376.00. Popular Palladium products this week included 2009 1 oz. Palladium Maple Leafs, 1 oz. Pamp Suisse Palladium Bars and 10 oz. Pamp Suisse Palladium Bars.

Numismatics:
APMEX has a superb selection of Pre-1933 U.S. Gold to accommodate both the investor and collector. Though gold may advance and retreat slightly, it seems it is no longer a far fetched analytical prediction that gold could reach the $1,500.00 per ounce milestone, based on many analysts’ predictions and the recent surge to new all-time highs.

Silver, though it has not garnered as much news coverage, has also seen significant increases in spot price over the past few weeks. APMEX is always buying Silver Dollars in any condition, as demand has generally outweighed supply. Morgan Silver Dollars grading from Very Good to Very Fine are extremely popular, as are Peace Silver Dollars in the same grade range. Virtually any silver coins, including 90% and 40% Silver coins, are moving fast in the current market!

APMEX continues its review of the Silver Dollar series. We will be taking a close look at the 1891-CC variety. The 1891-CC is one of the most common Silver Dollars to be minted at the Carson City Mint, however, all “CC” Silver Dollars are fairly scarce. This coin is usually very lustrous and has great eye appeal. Many choice examples may be found in uncirculated condition. Most coins of this year were immediately released into circulation, so there is a plentiful array of 1891-CC’s in circulated grades. The Silver Dollars that were not released into circulation were bagged up and held by the U.S. Treasury until the 1940’s and 1950’s when they were eventually paid out, yielding a great new supply for numismatists.

Though there are many die varieties attributed to the 1891-CC, one variety demands attention due to its name. The “Spitting Eagle”, or VAM-3 as it is also known, is a very popular variety among Silver Dollar enthusiasts. On the Reverse of this variety there is a tiny die gouge resembling saliva just below the eagle’s beak. This die gouge gives this variety its attention grabbing name. Even though the “Spitting Eagle” is a quite common variety, it remains one of the more popular VAM’s due to its unique name and visual appeal to children and adults alike.