Congressional leaders are scheduled to meet at the White House today for

Congressional leaders are scheduled to meet at the White House today for last minute talks over the fiscal cliff. At this point, it’s probably safe to assume that nothing in the way of a significant fix to the impending economic doom is within reach. Perhaps we could have assumed that a long time ago but hope is a powerful concept. Nonetheless, the talks in Washington remain a focal point as the year draws to a close. Chicago PMI and pending home sales are the only economic reports on tap for today. The precious complex is starting the day in negative territory and with few market participants it could be a choppy trading session. Have a great weekend!

Today’s batch of economic data will probably do little in the way of pushing

Today’s batch of economic data will probably do little in the way of pushing investor sentiment in either direction simply because improving jobless claims, more confident consumers and more home sales won’t matter if the country can’t avoid the Fiscal Cliff. The President and Congress were kind enough to cut short their Holiday break in a last ditch effort to strike a deal. Will it be a case of too little too late? We’ll find out in a matter of days. The uncertainty amid thin trading conditions has many market participants hesitant to place any significant bets. The “wait and see” approach seems to be the flavor of the month. To make matters even more interesting, Mr. Geithner has informed Congress that the debt ceiling will be reached as soon as Monday. U.S. initial jobless claims fell 12,000 to 350,000. Consumer confidence numbers and home sales data will be released a little later. The precious complex is mixed this morning. Palladium is the big mover having reached the $700 level, up more than 1% on the day.

Have a great day!

With just a few trading days left in 2012 the fiscal cliff remains at the forefront

With just a few trading days left in 2012 the fiscal cliff remains at the forefront of investor concern. The President is apparently cutting his vacation short in a last minute attempt to strike a deal with the GOP over spending cuts and tax increases before the end of the year. With little on tap for economic reports and with many market participants on extended Holiday schedules, thin trading conditions are expected for the remainder of the week. The sole economic report released today came in the form of the S&P/Case-Shiller home price index which indicated that the housing market is continuing to improve. The index showed an increase of .7% for the month of October. Recent sell-offs in the precious complex have given rise to some bargain hunting opportunities. Plaitnum, palladium, gold and silver are all in positive territory to start the day. Have a great day!

 

I don’t know what is less surprising, the fact that the world has not come to an end

I don’t know what is less surprising, the fact that the world has not come to an end or that John Boehner’s “Plan B” didn’t make it to his own party’s approval process. The long liquidation that has permeated the market as of late seems to have been tempered for the time being…at least in gold and silver. Platinum and palladium remain under pressure. Where there was once growing hope of a fiscal cliff solution there is now an aura of uncertainty hanging in the air. Will this uncertainty be enough to keep the longs from continuing to square up the books ahead of the year end and choppy trading conditions that lay ahead? That remains to be seen. However, with the likelihood of the country going off the deep end of the cliff continuing to grow it could make sense to park assets in the precious complex to protect against the longer and more drawn-out apocalypse that awaits us in 2013. Late last night it was reported that the House Speaker was unable to garner enough republican support for “Plan B”, the plan to extend Bush era tax cuts for everyone except those making more than $1 million a year. Our fearless leaders have decided to reconvene after the holiday…apparently economic collapse is not as important as turkey and stuffing. Have a great weekend!

It appears as though an agreement on the policies that threaten to

It appears as though an agreement on the policies that threaten to hurtle us over the so-called fiscal cliff will come down to the wire (Dec. 31^st). Lawmakers appear worlds apart on the economic philosophy of the situation and you know talks can’t be going well when said lawmakers argue about whether or not they should work through the Holidays! Market angst continues to grow as the number of trading days continues to dwindle and despite recent and relatively positive economic data. The latest of which being a reading on November CPI that showed a decline of .3%. Overnight, it was reported that Chinese manufacturing is showing signs of recovery and while that supported Asian markets it seems to have turned into a moot  point ahead of U.S. market open. The precious complex is mixed this morning following yesterday’s sell-off. Palladium is the big mover so far having pushed back to the $700, 1.27% up on the open. Have a great day!

 

Australian Silver Koalas have been struck annually since 2007 by the Perth Mint.

2013 1 oz Silver Koala 

Australian Silver Koalas have been struck annually since 2007 by the Perth Mint. The British Royal Mint established the Perth Mint as a branch facility in 1899 to refine and strike gold recovered from nearby deposits. Ownership was transferred to the State Government of Western Australia in 1970. The coins are struck in four sizes: 1 kilo, 10 ounces, one ounce and half an ounce. The one ounce format is the best seller and is one of the few bullion coins in the world that has both a silver bullion investor and coin collector following. The design bears a portrait of Queen Elizabeth II, which is mandatory on all legal tender Australian coinage. The reverse depicts an image of a koala, Australia’s cuddliest marsupial. The design of the koala used on the coin's reverse changes each year.  An adult Koala sitting in the crook of a tree is shown on the 2013 coin. All bullion coins from the Perth Mint are presented in protective acrylic capsules to help preserve the finish.

•  Seventh year of issue
•  Popular one troy ounce format
•  99.9% pure silver
•  Reverse design changes each year helps maintain interest in the series
•  Exceptionally high quality strike
•  Date: 2013
•  Diameter: 40.6 mm
•  Thickness: 4 mm
•  Mint: Perth
•  Grade: Brilliant Uncirculated
•  Coinns come in clear plastic protective capsule

Markets are awaiting the conclusion of this week’s FOMC meeting

Markets are awaiting the conclusion of this week’s FOMC meeting which will culminate in a much anticipated announcement from the U.S. economic brain trust at 12:30 this afternoon. The fate of Operation Twist is the main topic of interest as the Fed’s swap of short-term bonds for longer-term bonds may turn into outright purchases of $45 billion worth of Treasuries, per month, starting in the new year. That’s because, unlike dollars, short-term bonds aren’t easily made out of thin air AND THE Fed is running out of them. These bond purchases would be on top of the billions in mortgage-backed securities the Fed is already buying on a monthly basis. On the fiscal cliff front, the end would most certainly justify the means but to what extent either side of the aisle is willing to alter their means continues to be a point of contention among lawmakers. There’s plenty of finger pointing to make finger-pointers happy but as we move ever closer to the end of 2012, the citizenry of this country will get ever more impatient. For now, there’s still time…however little it may be. The precious complex is in positive territory this morning but look for things to get a bit choppier ahead of the announcement. Chairman Bernanke will explain the events of the meeting at a 2:15 pm ET news conference. Have a great day!

Friday’s Non-Farm Payrolls left much to be desired and any sell-of

Friday’s Non-Farm Payrolls left much to be desired and any sell-off, under the pretense of an improving jobs picture, has been met with support to the upside in early trading today. The precious complex is in positive territory this morning with gold and palladium up more than .5% and platinum and silver up roughly 1%. The U.S. created 146,000 new jobs in the month of November, according to the governments calculation, and unemployment fell to 7.7%. That would seem like good news if you choose to ignore the piece of the iceberg that lays just below the surface…the labor force participation rate, which dropped to 63.6%. That would equate to 350,000 people who simply gave up looking for a job! Across the pond, the Eurozone continues to add uncertainty to the markets and this time it isn’t Greece or Spain. Italy’s Prime Minister, Mario Monti, has announced he plans on resigning after the country’s government agrees on a budget. There’s not much else on tap for the start of the week, other than the normal fiscal cliff shenanigans. The Federal Reserve will meet this week to discuss the strategy of Operation Twist. This will culminate in the usual Wednesday afternoon announcement of what the Fed plans to do to crush the U.S. Dollar even more. Have a great day!

For nearly 2,000 years, Britannia has been the symbol of Great Britain …

 

2013 1 oz Silver Britannia. For nearly 2,000 years, Britannia has been the symbol of Great Britain … as universally loved and admired by Queen Elizabeth II and her subjects as Lady Liberty is with us. And for the first time in history, the British Royal Mint is striking the exquisite new 2013 Silver Britannia in one full ounce of .999 PURE SILVER.

The Silver Britannia is the same size and silver weight as the U.S. Silver Eagle … and now, it’s the same silver purity.  But there’s a huge difference.  The Silver Britannia is struck to exacting standards and is issued in a much smaller edition, making it an exclusive and seldom-seen masterpiece.


• One Ounce 99.9% Pure Silver
• Legal Tender £2 Coin
• Struck at the World-Famous British Royal Mint
• Original Brilliant Uncirculated Condition

The markets remain rather subdued after Fridays sell off

The markets remain rather subdued after Fridays sell off, with silver being the only real mover this morning.  Chinese PMI rose marginally from 50.2 to 50.6, missing Bloomberg’s projection 50.8 by a hair. The major countries in the Euro zone also released their PMI #’s today, with most coming in on par with or slightly below the projections.  This had a positive effect on the equities and commodity markets in the early morning which was curbed rather quickly when the US ISM # was released.  Coming in at 49.5, it was 1.9 points lower than expectations which makes it the lowest since July 2009.  This is important # because it is the first read of the month on the strength of the US economy.  As expected this has had a negative effect on global equities markets and has also begun to put pressure on some of the commodities.  Looking further out, the real mover this week should be ADP report on Wednesday and the unemployment #’s on Friday.  As this will be the first read since the election, we will likely see quite a bit of trading ahead of the number.  Technically gold and silver look rather bearish in the near term, while the long term view remain bullish due to the supporting fundamental case.  It seems selloffs are to be bought as a rally above 1726 and 34.50 may trigger a break out to test 1750 and 35.  Platinum and palladium remain relatively strong with palladium fairing out the best.  In the near term the technicals for palladium look slightly bullish, while platinum looks to be well supported around the $1580 level.  Good luck this week.

Royal Canadian Mint add unique security device to its 2013 Gold maple Leaf Coins!

Royal Canadian Mint add unique security device to its 2013 Gold maple Leaf Coins!

Gold bullion investors and coin collectors are scrambling to get the new 2013 Gold Maple Leaf coins. Struck from one ounce of Canada’s legendary .9999 fine gold, these coins boast a laser security device. This new visual security feature confirms the authenticity of all Maple Leaf one-ounce gold coins produced in 2013 and beyond. Lasers create a contrasting pattern micro-engraved on the coin die. The device appears on the reverse of the coin. 

These coins are world leaders in terms of purity and security

The unique new security feature used for the first time in 2013 combined with the status of pure 24kt gold ensures the coins bullion and numismatic value!

The precious complex is in the red this morning as a stronger U.S. dollar

The precious complex is in the red this morning as a stronger U.S. dollar and month-end profit-taking weigh on the markets. With no real news to keep the markets elevated, other than any fiscal cliff developments, market participants are seizing the opportunity to lock in profits ahead of year-end and position themselves for the potential trouble that looms just around the corner on January 1^st. Palladium is off 2.5% from yesterday’s close at $668.20 while silver is also down 2.50% to $33.060. Platinum sunk back below $1600 ad is currently down 1.75% to $1590. Gold is also down  1.75% to $1712 after closing yesterday’s session at $1742.30. Lack of progress over a fiscal cliff deal has investors on edge and will continue to do so throughout the rest of the year. Today brings about new home sales data at 10:00 AM ET and the Federal Reserve’s Beige Book release later this afternoon. Across the pond, it was reported on Tuesday that a debt deal had been proposed that would pave the way for Greece to receive another infusion of funds pushing the euro back to the $1.30 level. However, not surprisingly, details remain sketchy and concerns over whether all parties involved would agree on the deal places a blanket of uncertainty over the region and has the euro now trading at $1.289. Have a great day!

Fiscal Cliff? What Fiscal Cliff?

Fiscal Cliff? What Fiscal Cliff? If you need a better gauge of consumer sentiment, other than the U. of Michigan’s consumer sentiment index, look no further than Black Friday sales as deciphered by the National Retail Sales Federation. Perhaps this year’s crop of Turkey’s didn’t contain enough tryptophan because shoppers were out in force as early as Thursday night, spending $59.1 billion dollars and driving sales 13% higher than the same day last year. However, this may not be enough to boost investor sentiment as one very big concern remains, the cliff they call “Fiscal”. Congress returns to mounting pressure to reach a deal in little more than a month, to avoid economic disaster. Across the pond, Eurozone finance ministers will be looking to avoid a disaster of their own as they meet to decide on whether or not to open the proverbial pocket-book for Greece. Nothing terribly exciting on tap for today as markets get back into the swing of things after the extended holiday weekend. The precious complex is trading relatively flat to start the day. Have a great day!

U.S. markets are likely to remain in wait-and-see mode today as light trading volumes ahead of Thanksgiving

U.S. markets are likely to remain in wait-and-see mode today as light trading volumes ahead of Thanksgiving, concerns over the fiscal cliff and lack of a Greece debt-reduction agreement weigh on investors. Euro finance ministers failed to reach an agreement today surrounding Greece’s fiscal woes that would pave the way for much needed bailout funds to be released. Discussions lasted nearly 12 hours and it was said that progress was made. However, Greece’s future in the Eurozone remains in limbo, at least until Monday when talks are scheduled to resume. Tensions in the Middle-East remain high as hopes for a cease-fire seem to be dwindling following a bus bombing in Tel-Aviv. Here in the U.S. initial jobless claims came in at just 41,000 last week compared to the 90,000 claims the week before. The Labor Department has cited Hurricane Sandy as the culprit for the unusually high claims but as the North East continues to recover the claims should fall. The University of Michigan will release the last of its November readings on consumer sentiment at 10:00 AM ET. Have a great day and Happy Thanksgiving!

The short attention span of the U.S. markets will shift overseas following yesterday’s rally

The short attention span of the U.S. markets will shift overseas following yesterday’s rally on the back of Friday’s “Fiscal Cliff” talks that investors perceived to be positive. Eurozone worries will be competing with Mid-East violence for the spotlight today following a credit downgrade of one of the regions larger economies and as EU finance ministers discuss aid to Greece. Moody’s became the latest credit rating agency to downgrade France to an Aa1 rating after Standard & Poor’s did similarly in January. Moody’s cited struggles with both high debt levels and labor market issues, among other problems, as reasons for the downgrade. The euro reached a low of $1.276 but has since moved above yesterday’s closing levels and is now at $1.279. In other Eurozone news, the regions financial brain trust meets today to discuss a €44 billion aid package to Greece and to say the finance ministers are uncertain about lending to the economically stressed country would probably be an understatement. Here in the U.S. a report on housing starts showed an increase of 3.6% in October, the highest rate since 2008. Fed Chairman Bernanke is due to speak at the Economic Club of New York beginning at 12:15 pm ET. Expect markets to become a bit choppier as trading conditions begin to thin out ahead of the long Turkey-Day weekend here in the states. Have a great day!

Markets here in the U.S. are looking a bit rosier following Friday’s

Markets here in the U.S. are looking a bit rosier following Friday’s relatively cordial “Fiscal Cliff” discussion between the President and lawmakers. This has given hope to investors that Congress will be able to keep the economy from going over the edge and slipping back into recession. The combination of spending cuts and tax increases will take effect on January 1^st if the President and lawmakers don’t find some common ground before then. Violence in the Gaza strip, between Israel and Hamas, has the world on edge and it doesn’t appear the two sides are willing to talk it out. Gold and oil have pushed higher as the conflict threatens to spill into all-out war. The yellow metal is up nearly 1% after closing Friday’s session at $1715.Gold is now trading at $1730. The rest of the precious complex looks to be riding gold’s coat-tails with a little help from thin trading conditions to start the Holiday shortened week here in the States. Existing home sales will be released at 10:00 am EST. Have a great day!

Hostess Brands, the maker of the beloved Twinkies, intends to close up shop

We can forget about the fiscal cliff or the Mayan prediction of the apocalypse…Hostess Brands, the maker of the beloved Twinkies, intends to close up shop. The world might as well just end now! Fortunately, we don’t have to panic just yet as the company will be liquidating assets and Twinkies will likely live on…Unfortunately, we can’t exactly forget about the looming fiscal cliff. U.S. equities are poised to move higher to end the week as rumor has it that the President and his administration may have an idea of how to avoid the cliff. As they say though, talk is cheap and until action is taken investors will remain cautious. President Obama will meet with lawmakers today to discuss the impending economic turmoil and investors will gauge the tone of the talks for an idea of whether or not the two sides will be able to make progress before the end of the year. The precious complex remains under pressure in early trading. Platinum continues to decline on the back of reports that striking miners have returned to work at the world’s #1 platinum producer, Amplats. The white metal closed yesterday’s session at $1573 but ran into more selling in the Asian markets and is now trading at $1555.50. Palladium has followed suit and now trades at $628 after closing yesterday’s session at $631. Have a great weekend!

Platinum’s march toward $1600, following forecasts of deficits in the wake of continued

Platinum’s march toward $1600, following forecasts of deficits in the wake of continued labor strife in South Africa, has been reversed after reports that workers are returning to the mines at Anglo American Platinum. Amplats, the world’s #1 platinum producer, said workers began returning to work today and that it would take about a week for production to resume. Platinum closed yesterday’s session at $1591.60 but is now trading more than .75% lower at $1578. Palladium looks to have slowed its recent surge as the metal is now trading modestly softer in the early session, down .4% to $638. U.S. initial jobless claims soared 78,000 to 439,000 last week but the jobs data needs to be taken with an even bigger grain of salt than normal as the numbers are skewed by the aftermath of Hurricane Sandy and could be for quite some time. In other data released today, October CPI rose just .1%. Philly Fed manufacturing data will be released at 10:00 am EST. Across the pond, Eurozone GDP readings have indicated that the region is in recession yet again. Eurozone GDP in the third quarter contracted .1%. Have a great day!

I don’t know why everyone’s worried about the fiscal cliff.

I don’t know why everyone’s worried about the fiscal cliff. According to the Mayan’s we won’t even get to Jan. 1, 2013! However, regardless of which catastrophic event does/does not happen, there’s always some economic data to keep us preoccupied.  Earlier this morning the Commerce Department reported a decline in U.S. retail sales in October. Hurricane Sandy is said to be the primary culprit of a .3% decline in retail sales last month. The massive storm that battered the north east is said to be the cause of a 1.5% haircut in auto sales for the month of October. Data from the Bureau of Labor Statistics was expected to have shown a .1% increase in the PPI but that figure actually showed a decline of .2% for the month of October. Later today we’ll get the meeting minutes from the FOMC’s last meeting but no one is expecting anything surprising. The precious complex is trading modestly higher in the early part of today’s session with the exception of palladium. The white metal is continuing to surge higher after yesterday’s >4% move higher following JM’s forecast of a 915,000 ounce palladium deficit. Palladium is up 1.35% on the day, now trading at $645. However, the recent uptick may provide a good opportunity to lock in profits so a correction is not out of the question. Have a great day!

As the President of the United States and lawmakers from both parties play chicken with the

As the President of the United States and lawmakers from both parties play chicken with the proverbial freight-train, the “fiscal cliff”, investor sentiment remains cautious at best. While the consensus seems to be that a deal will be reached, it may not come until the very last minute and, until then, the markets will be left to speculate on the “what if” scenario should the clock strike zero hour. In Europe, Greece’s passing of a budget over the weekend was only half the battle, or perhaps a quarter of the battle, as a meeting to discuss the next tranche of bailout funds for the struggling country has been pushed to November 20^th indicating that the regions finance ministers remain uncertain about Greek staying power in the European Union. A €5 billion debt repayment, due on Friday, has been rolled over but at some point Greece is going to have to pay the piper and that will weigh heavily on any decision by EU leaders to release funds. The euro has slipped roughly .25% and now trades at $1.267.  The precious complex is mixed with gold and silver trading lower and platinum and palladium trading higher. The white metals are seeing support from the release of JM’s Platinum 2012 Interim Review that indicates the platinum market will go into a deficit of 400K t.o. on the back of supply disruptions and lower recycling volumes. Platinum is up nearly 1% while palladium is up more than 1.25%. Have a great day!

 

The trifecta of regional fiscal uncertainty continues

The trifecta of regional fiscal uncertainty continues to weigh on the minds of investors. Japan, the world’s #3 economy, appears on course for recession following reports that the island nation’s economy shrank by 3.5% last quarter. The data comes as a surprise to many economists as the second quarter was revised up to a .3% growth rate. Japan’s Nikkei 225 lost nearly 1% by the close of trading in Asia. In Europe, Greek lawmakers passed a 2013 budget over the weekend, a big step towards persuading lenders to free up more bailout funds. However, with a €5 billion payment on the books for this week, those lenders might not be pulling out the checkbooks just yet. Here in the U.S. consumers seem confident following Friday’s report from the University of Michigan. However, President Obama is scheduled to meet with lawmakers from both sides of the political aisle to discuss the impending “fiscal cliff” and, depending on the amount of political chest-thumping that could result, the confidence may not last long. The precious complex is mixed this morning. Gold is up .3% and well supported at the moment as current economic conditions lead many to believe that the money-printing by the fed won’t end anytime soon. Platinum is trading up .5% on the back of continued labor issues in South Africa. Palladium is relatively flat in early trading. Have a great day!

 

Better than expected data out of China in the overnight sessions had investors hopeful of a change

Better than expected data out of China in the overnight sessions had investors hopeful of a change in direction following two straight days of declines in equities markets. However, better-than-expected industrial output and retail sales in the world’s #2 economy were not enough to ease concerns about global fiscal woes, particularly the upcoming “fiscal cliff” here in the U.S. The Congressional Budget Office has gone so far as to predict that, should the U.S. go over the edge, the economy could see a drop in GDP of .5% and unemployment over 9% by the end of next year. The precious metals complex is pushing higher in early trading with gold up  .5% from yesterday’s close, now trading at $1736. Platinum is the big gainer so far, up nearly 1.5% and now trading at $1565 on the January contract. University of Michigan’s November consumer confidence index will be released later this morning. Have a great weekend!

U.S. stock markets reacted to the U.S. presidential election with a steep sell-off

 

U.S. stock markets reacted to the U.S. presidential election with a steep sell-off as all 3 major U.S. stock indices shed more than 2% on the day. The DJIA cut more than 300 points to end Wednesday’s session below 13,000. Needless to say, gold was well supported and closed yesterday’s session at $1714 and is modestly higher in early trading this morning. However, according to some, this reaction is not all that uncommon following presidential elections. The question is, where do we go from here? With a virtual mirror image of the previous governing body of the U.S. of A, some are skeptical as to whether progress will be made this time around or whether it will be more of the same shenanigans. One thing remains clear, the fiscal cliff is fast approaching and whether we end up the Road Runner or Wile E. Cayote will depend in large part on the ability of both sides of the isle to extend the Olive Branch… with sincerity. Weekly jobless claims here in the U.S.  shrunk to 355,000 last week but many are expecting a revision next week as a large swath of the Northeast continues to recover from a one-two punch from mother nature. In Europe, Greece moved one step closer to securing the bailout funds needed to stave-off financial collapse. The country’s ability to pass steep austerity measures has eased concerns, for now, of a “Grexit” from the EU. Have a great day!

The precious complex is moving higher in early morning trading after a sharp sell-off

The precious complex is moving higher in early morning trading after a sharp sell-off to end last week. The downward momentum across the financial landscape, that was apparent through much of last week, was finally too much to bear on Friday and investors took the opportunity to lock in profits/cut losses and hit the sidelines in preparation for tomorrows U.S. Presidential Election. The Institute for Supply Management will report its service-sector index and more corporate earnings are on tap for the day but none of it really matters as investors are in wait-and-see mode at the moment. After the decision of who will be Commander-in-Chief for the next 4 years, the next big question will surround the “Fiscal Cliff” that is fast approaching. Expect thin trading conditions both today and tomorrow, which could lead to some volatility in the markets. However, until the results of the election are clear we shouldn’t see any significant movement in either direction. Have a great day!

The Chinese government’s official PMI data

The Chinese government’s official PMI data, released overnight, showed the country’s manufacturing sector moving back into expansion mode. The reading came in at 50.2 for the month of October, up from a September reading of 49.8. Any reading above 50 is considered good. While the sentiment boosting data from the world’s #2 economy helped the precious complex maintain yesterday’s end-of-month rally, and even press a bit higher this morning, markets are in wait-and-see mode ahead of tomorrow’s crucial U.S. government jobs data. Other employment data, released earlier this morning, showed planned job cuts jump 41% to 47,724 in October, the private sector added 158K jobs and weekly initial jobless claims fell to 363,000 last week. The deluge of economic data continues with reports on manufacturing, consumer confidence, construction and auto sales throughout the day. Have a great day!

 

First, and foremost, our thoughts and prayers go out to everyone who has been impacted by Hurricane Sandy.

First, and foremost, our thoughts and prayers go out to everyone who has been impacted by Hurricane Sandy. There are still some dangerous conditions out there so be safe and we wish you a speedy recovery!

 

While New York City, and much of the Northeastern U.S., forges ahead with clean-up efforts financial markets in Lower Manhattan reopened today following a two day closure. The PGM complex managed to hold itself together amid thin/choppy trading conditions over the first two days of the week. Given that it’s the last day of the month and markets are just now opening for the week it could prove to be an active day across the financial landscape as many look to square the books. Gold is trading roughly $6 higher at $1718 in early trading but the big movers are silver (up 1.1% to $32.165), platinum (up 1.18% to 1572) and palladium (up 1.70% to $606.30).  Across the pond, data from Eurostat showed the regions unemployment reached 11.6% in September. However, the euro is holding pretty steady at the moment, currently up .2% to $1.2992. Here in the U.S. there is not much on tap for the day but investors will continue to digest earnings reports and prepare themselves for Friday’s October unemployment numbers, the last reading before Election Day! Have a great day!

Consumer and government spending helped U.S. 3rd quarter GDP reach 2%

Consumer and government spending helped U.S. 3^rd quarter GDP reach 2%, up from 1.3% in Q2 and higher than the expected 1.7% economists were expecting. However, it doesn’t appear this better-than-expected reading is anything to get very excited about as annualized GDP stands at 1.74% in 2012 vs. 1.8% at the same time last year and both exports and business investment were the anchors holding back growth. It’s like getting a C+ on an exam…at the end of the day it’s still a C. Let’s not forget that these numbers can be, and usually are, revised but that revision won’t come until after the election. After a sell-off in overnight sessions the precious metals complex has rebounded back toward yesterday’s closing levels. Gold once again found a cushion around the $1700 level and is now up .13% at $1715 in early morning trading. Silver is up  .33% and trading above yesterday’s close, now at $32.18. Platinum reached as low as $1545 overnight after closing Thursday’s session at $1568.8 but has since regained some ground and is currently trading at $1566. Palladium is trading just shy of flat to yesterday’s close. Have a great day!

 

Yesterday’s better-than-expected report on U.S. new home sales helped support the greenback

Yesterday’s better-than-expected report on U.S. new home sales helped support the greenback which gave way to more pressure on the precious metals complex. Those who were able to catch the falling knife have been rewarded with a nice rebound in early trading this morning. Gold closed at $1701.60 after a brief visit below the psychological level of $1700 but has since clawed its way back to the tune of more than $10 dollars as the yellow metal is currently trading at $1715. Silver is up more than 1.5% at $32.145 after closing Wednesday’s session at $31.620. Platinum and palladium are both up more than $10 from yesterday’s close at $1576 and $604 respectively. U.S. initial jobless claims fell to 369,000 from last week’s 392,000. U.S. durable goods orders also showed signs of improvement, rising 9.9% and beating expectations of just a 7.1% bump. Across the pond, UK GDP growth came in at 1% in the third quarter as the 2012 Olympics helped pull the country out of recession.  Have a great day!

The week started off with a bit of weakness in the precious metals complex overnight.

The week started off with a bit of weakness in the precious metals complex overnight. We have since retraced most of those losses leaving PT, PD and AU all near Fridays close, while AG is trading up 0.8%. Platinum and gold seem to have found support at their 50 DMA’s ( $1604.44 & $1722 respectively). Palladium momentarily breached its 100 DMA ($619.82) but has since recovered and seems to be supported there in the near term. All eyes will be on the third and final presidential debate tonight, followed by the Chinese PMI tomorrow, then the FOMC meeting mins and US Q3 GDP later this week.

Overnight reports showed Chinese GDP grew at 7.4% in the third quarter of 2012

Overnight reports showed Chinese GDP grew at 7.4% in the third quarter of 2012 and while that’s relatively in-line with expectations it’s still moving in the wrong direction. However, retail sales, industrial output and fixed asset investments in the world’s #2 economy were shown to have improved. Considering that, up until this global economic crisis, China had enjoyed consistent growth around 10% a year, the China piece to the puzzle remains uncertain at best. The EU summit begins today as leaders from the region put forth efforts to further unify the union and hopefully start moving toward growth and prosperity. Yesterday’s news that Moody’s did not change Spain’s credit rating has led many to believe that the country will tap the ESM-ATM which has seemingly eased concerns of euro area instability. Although, there is that Greece situation! US initial jobless claims “unexpectedly” rose 46,000 to 388,000, the highest level in four months. The “surprising” news came just a week after reports showed a drop in first time jobless claims. However, those numbers were apparently missing data from a large state…has anyone seen Jack Welch? The collective of the day’s events and the resulting modest pessimistic sentiment have weighed on the precious complex this morning. Left on tap for today, the Philly Fed Business Outlook set for release at 10:00 am ET. Have a great day!

Upbeat housing data and better-than-expected corporate earnings

Upbeat housing data and better-than-expected corporate earnings would seemingly lend to bullish sentiment this morning but it feels as if markets are waiting for the other shoe to drop. Reports that housing starts and building permits are at 4-year highs certainly bodes well for our domestic economic picture but the global economic situation is a bit more clouded and perhaps investors are awaiting tomorrows GDP data out of the world’s #2 economy, China, before making any decisions ahead of the U.S. election. Across the pond, Moody’s didn’t cut Spain’s credit rating which boosted benchmark 10-year bond prices and pushed yields down to 5.53%. This helped the euro breach the $1.30 level, now $1.3125. Gold and silver remain relatively unchanged from yesterday’s close with gold trading modestly higher at $1749 and silver up just .2% at $33.030. The PGM complex continues to see support from the situation in South Africa.  Platinum is currently up more than 1% at $1665 while palladium is up nearly 1% as well at $645. Have a great day!

A week dominated by global growth concerns is coming to an en

A week dominated by global growth concerns is coming to an end with the precious metals under pressure early in U.S. trading. Gold saw little action in the overnight sessions and opened relatively unchanged from yesterday’s close of $1770. The yellow metal now trades .1% lower at $1768 while silver is down nearly 1% to $33.79. The PGM’s are in the red as well with platinum currently trading nearly 1% lower at $1676 and palladium down ~.5% to $648.25. This morning’s report on producer prices showed greater than expected increase but inflation remains flat. UofM’s consumer sentiment report is due at 9:55 am ET and given recent upbeat jobs data it is no surprise that the index is expected to notch up .2 points to 78.5. The rest of the day will see investors taking in third-quarter earnings as they also look to position themselves for next week’s deluge of reports and events, to include the second presidential debate. Have a great day and a better weekend!

While Felix Baumgartner jumped from a capsule 128,000 feet in the air

While Felix Baumgartner jumped from a capsule 128,000 feet in the air and while he may have hurtled to the earth at greater than the speed of sound, his record breaking journey seems less perilous than The United States’ impending “Wile E. Coyote” fall off the fiscal cliff scheduled for 2013. However, those concerns appear second to the global growth concerns that continue to weigh on investor sentiment at the moment. Economic data out of China in the overnight session showed inflation of 1.9% in September while trade surplus numbers were better than expected. The somewhat positive news will likely be brushed off as the more important measure of China’s status, third-quarter GDP, will be reported later this week. Not much seems to have changed across the pond in Europe. Spain continues to delay what many seem to feel is the inevitable (a bailout) and Greece looks for more money. U.S. retail sales data was up 1.1% for the month of September on the back of >$4/gallon gasoline. The Empire States manufacturing index remains in negative territory but improved to -6.2 from -10.4. The precious metals complex continues its downtrend from last week with all the metals in the red this morning. Gold is trading at $1745, down .8% while silver is down nearly 1.5% to $33.15. Platinum is trading at $1640, down more than 1% while palladium is down slightly to $636.25. Have a great day!

A week dominated by global growth concerns is coming to an end

A week dominated by global growth concerns is coming to an end with the precious metals under pressure early in U.S. trading. Gold saw little action in the overnight sessions and opened relatively unchanged from yesterday’s close of $1770. The yellow metal now trades .1% lower at $1768 while silver is down  nearly 1% to $33.79. The PGM’s are in the red as well with platinum currently trading nearly 1% lower at $1676 and palladium down ~.5% to $648.25. This morning’s report on producer prices showed greater than expected increase but inflation remains flat. UofM’s consumer sentiment report is due at 9:55 am ET and given recent upbeat jobs data it is no surprise that the index is expected to notch up .2 points to 78.5. The rest of the day will see investors taking in third-quarter earnings as they also look to position themselves for next week’s deluge of reports and events, to include the second presidential debate. Have a great day and a better weekend!

Silver Christmas rounds make a perfect holiday gift that will be cherished forever.

Silver Christmas rounds make a perfect holiday gift that will be cherished forever. Each round is struck from 1 troy ounce of .999 pure silver. These beautifully struck festive rounds measure 39mm in diameter and are hallmark stamped for their exact weight and purity. Each round is encapsulated in a clear plastic holder and comes in a gift box as seen.

Credit rater S&P downgraded Spain

Credit rater S&P downgraded Spain on Wednesday to BBB- citing rising tensions among then countries regional economies and uncertainty about the recapitalization of the Spanish banking sector. The country is widely believed to need at least 60 million but has access to at least €100 million to get the job done. Prime Minister Rajoy has been able to avoid a bailout and the conditions that may come along with such assistance but the latest blow to the country’s credit rating could force his hand. The EUR is up .67% to $1.2932 and has lent support to the precious complex as gold is up .25% to $1770 in the early session while the rest of the metals find themselves in positive territory as well.  The latest U.S. unemployment filings are making the jobs picture look rosier as the number of people filing for the first-time dropped 30,000 to 339,000. This is the first jobless claims report since last week’s head-scratcher that showed the unemployment rate fell to 7.8%.  Have a great day!

Global growth concerns are weighing on the precious metals complex this morning

Global growth concerns are weighing on the precious metals complex this morning as the onslaught of pessimistic forecasts continue. This time it was Alcoa underlining slowing growth in China, the world’s #2 economy, by reducing demand forecasts for the country as the aluminum producer kicked-off the third-quarter earnings season on Tuesday. The latest blow to investor sentiment came just days after the World Bank cut China’s GDP growth forecast to 7.7% from 8.2% in May. To put it in perspective, the Chinese economy was growing at a rate of 10.4% in 2010 and 9.3% just last year. The IMF on Tuesday said global growth may come in at just 3.3% this year. Later today the Fed will release the Beige Book (2:00 PM ET) but traders aren’t expecting the report to turn any frowns upside down. Have a great day!

Friday’s seemingly positive U.S. unemployment report and a weakening outlook on

Friday’s seemingly positive U.S. unemployment report and a weakening outlook on economic growth in Asia, in the overnight session, have pressured the precious metals complex lower. However, the impending fiscal cliff and the worsening situation in South Africa could provide some cushion to the downside for the metals.  We ended last week with a report that showed U.S. non-farm payrolls added 114,000  jobs while the unemployment rate fell to 7.8%. The fact that the economy needs to grow 250,000 or so jobs per month, to keep up with population growth, seemed not to matter and the unemployment rate made investors feel a little less uncertain. Gold, which was flirting with the psychological level of $1800 closed Friday at $1780 and is now trading even lower in the early part of the session. The yellow metal is currently trading at $1773 while silver trades at $33.975…down from Friday’s close of $34.572. According to The World Bank, outlook for growth in Asia was knocked down .4% to 7.2% and concerns surrounding Europe could further weaken GDP growth for Asia through next year. Platinum for January delivery closed Friday’s session at $1707 and has now fallen through the $1700 level…currently trading at $1692. Palladium is down more than 1% and currently trades at $655. However, the escalating situation in South Africa could provide support as the threat of strikes spill over from the mining sector to other industries throughout the country. The South African Municipal Workers Union (SAMWU) has filed a notice to strike while a trucking strike has delayed fuel deliveries around Johannesburg. On Friday, Anglo American Platinum fired 12,000 striking workers.  It’s been reported that 23% of miners in the country are on strike. Have a great day!

The precious complex pushed higher yesterday, fueled by the ECB bond buying program

The precious complex pushed higher yesterday, fueled by the ECB bond buying program and the deteriorating situation in  South Africa. Gold rallied and closed Thursday’s session at $1796.5 as comments from ECB President Mario Draghi indicate that the bond buying program is in place and ready to begin Outright Money Transaction. Platinum closed Thursday’s session at $1725.10 as strikes continue to spread across the mining industry in South Africa.  However, risk assets now find themselves under pressure as the U.S. Non-Farm Payroll data, releases at 8:30 am this morning, showed employment in the world’s #1 economy remains weak. The economy created just 114,000 jobs in September, only modestly better than the 96,000 jobs created in the month prior. The unemployment rate did drop to 7.8% but most likely due to more people giving up the job search than people getting back to work. Gold was once flirting with $1800 but now trades ~.75% lower on the day…currently at $1784. Platinum for January delivery reached as high as $1734.5 but now trades at $1715. Have a great day!

You can twist the numbers any which way but the jobs picture here in the U.S. remains stagnant

You can twist the numbers any which way but the jobs picture here in the U.S. remains stagnant at best. Sure, ADP private sector job’s numbers  were better than expected - I can also call my day successful if the only goal was to get out of bed in the morning. The fact remains that with the election season upon us and with the economy barreling towards the fiscal cliff, hiring could remain cautious until the outcome of those aforementioned issues are defined. Initial jobless claims, reported this morning, increased by 4,000 and the previous week was shown to have increased by 4,000 more than initially thought! Today’s activities will likely be the result of investors positioning themselves ahead of the non-farm payroll data set to be released tomorrow. At 2:00 PM ET, the Fed will release the minutes from the meeting that resulted in a third round of quantitative easing. While the minutes won’t reveal what type of illegal substances the Fed members were smoking, it could give investors a better understanding of why the central bank thinks it’s a good idea to buy $40 billion in mortgage debt per month...with no end in sight. Across the pond, both the Bank of England and the ECB left rates unchanged. Investors are no doubt eyeing Mario Draghi’s comments from earlier today but hope alone seems to be enough to calm concerns surrounding Spain…for now. The question remains, when will they start buying bonds? The PGM complex is supported for the time being as the situation in South Africa drags on. Platinum is up more than .5% having breached the $1700 mark…currently trading at $1706. In the other precious metals, gold opened relatively unchanged from yesterday’s close but proceeded to move higher in the early session. The yellow metal has hit as high as $1797 but has since fallen to roughly mid-range at $1788. Have a great day!

If concerns about the devaluing of U.S. currency weren’t already fully apparent

If concerns about the devaluing of U.S. currency weren’t already fully apparent, after the roll-out of QE Infinity, then Chicago Fed Chairman, Charles Evans’ rhetoric on Monday served as the bolding, italicizing and highlighting of the monster otherwise known as Inflation. The non-voting member of the Fed expressed his belief that the Fed can take even further measures to boost growth in the currently sluggish U.S. economy. Evan’s words were enough for gold to breach $1790, leaving many scratching their heads. However, the yellow metal came under some pressure as markets realized that Evans’ epiphany wasn’t exactly a new revelation and Chairman Bernanke’s comments, later in the day, offered nothing new either. Gold is currently trading around $1779. Today, European market focus remains on Spain as a Moody’s assessment of Spain’s banking sector has many believing it’s a question of “when” rather than “if” the indebted country will take a bailout. U.S. markets received support following a strong reading from the Institute of Supply Management’s index that came in at 51.5, indicating the manufacturing sector in the U.S. has bucked the three-month trend of contraction. Today will bring about U.S. auto sales data for the month of September while the focus will shift to Jobs for the last half of the week. The stand-off between Anglo and striking miners at the company’s Rustenburg operation continues to support the PGM complex. Anglo says attendance at the mine remains below 20% and that striking miners had until today to appear for disciplinary hearings or face dismissal. Platinum is currently trading at $1682…up roughly $20 from Monday’s open. Have a great day!

As we kick-off the 4th and final quarter of 2012 market sentiment seems rather positive this morning

As we kick-off the 4^th and final quarter of 2012 market sentiment seems rather positive this morning despite evidence of continued struggles for global economic growth. The Chinese Government’s official manufacturing index came in at 49.8. While that’s an improvement from the previous months 49.2, it still indicates that the sector is contracting and with export orders dropping it doesn’t appear the sector will improve much in the near future. This development has further supported hopes of a China stimulus play but with the country on holiday for Golden Week central bank action in the country may not occur until after leadership changes occur at the upcoming congress. While last week’s events in Spain were relatively in line with expectations, concerns about the region persist as manufacturing and employment data, released earlier today, showed the regions PMI came in at 46.1 while unemployment reached 11.4%. Here in the U.S., Jobs are the theme of the week as private sector employment (Wednesday) and initial jobless claims (Thursday) will prime investors for the big show – Non-Farm Payrolls – on Friday. The last reading showed only 96,000 jobs were created. Gold experienced some selling on the back of Chinese data overnight but is regaining some lost ground currently trading at $1770. Platinum is off slightly, trading at $1667, and continues to be supported by the on-goings in South Africa. Striking miners at Anglo’s Rustenburg facility are now facing disciplinary actions as the mine tries to get workers back to work. It’s estimated that nearly 75,000 workers are idle across the mining industry in South Africa. Have a great day!

Silver Rounds Monster Box 500 (Timber Wolf Design)

Silver Rounds Monster Box 500 (Timber Wolf Design)

 

Silver Rounds Monster Box 500 (Timber Wolf Design)

Each box contains 500 silver rounds (500 ounces). The rounds are packed in 20 coin rolls (25 rolls per box). Each round measures 39mm in diameter and contains one ounce of .999 fine silver. They are hallmarked stamped with their exact weight and purity. These rounds are guaranteed brand new, mint fresh and have never been offered to the public before. Buying mint direct in bulk saves you money and gives you the flexibility of selling just a few rounds at a time.

These rounds are privately struck in the United States and are not affiliated with or endorsed by the Royal Canadian Mint.

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2012 1 oz. Silver Armenia 500 Drams Noah’s Ark Coin

2012 1 oz. Silver Armenia 500 Drams Noah’s Ark Coin

Noah´s Ark coins are legal tender issued under the authority of the Central Bank of Armenia. The coins are struck in Germany by  Geiger Edelmetalle GmbH.

The design for which the coins are named after  depicts a dove in flight with an olive branch and Noah’s Ark floating on floodwaters in front of Mount Ararat and the rising sun.  The story of Noah´s Ark and the Great Flood is well recognized around the world. Noah´s Ark is the most meaningful symbol in Armenian history.

Noah´s Ark Silver bullion coins .999 fine silver coins are also available in  1/4, 1/2, 1, 5, and 10 oz. sizes, as well as in 1 and 5 kilo sizes.

Diameter: 38.6 mm
Weight: 1 oz.
Purity: .999
Condition: Brilliant Uncirculated
Denomination: 500 Dram
Legal tender: Yes

The precious complex was able to pare losses and firm up over night

The precious complex was able to pare losses and firm up over night following yesterday’s bout of selling which could probably be attributed, in some part, to quarter end profit taking. Rumors that China may sit at the stimulus table, as early as next week, may have also have something to do with the rebound in prices. Platinum is seeing support from the ongoing stalemate between Anglo and the unions…currently trading at $1764. The markets appear to be in a wait and see mode right now as investors await the details of Spain’s 2013 budget that was released earlier today. The potential of new austerity measures, cutbacks and reforms have the populace of the heavily indebted nation up in arms and  as protests rage on, the benchmark 10-year bond yields in Spain have breached the psychological level of 6%.  Here in the U.S., durable goods orders fell 13.2%, a decline the likes of which haven’t been seen since the beginning of 2009. Second-quarter GDP was revised down from the previous estimate of 1.7%, coming in at a more depressing 1.3%. One bright spot in today’s data dump is the decline in initial jobless claims. However, the aforementioned figures for durable goods and GDP would suggest that the decline in jobless claims will probably be temporary. Have a great day!

 

What happens when you run out of cork to plug the leaks in your sinking ship?

What happens when you run out of cork to plug the leaks in your sinking ship? That’s what investors will be asking themselves as we draw ever closer to the end of the third quarter and the stimulus high wears off. A period of uncertainty lies just beyond the horizon and more likely than not the seas are going to get rough. Markets around the world are feeling the pressure from that global economic uncertainty leading many to head for the hills of safe-havens like gold and U.S. treasuries. While Tuesday’s U.S. consumer confidence data seemed to make that light at the end of the tunnel flicker just a little brighter, the conditions in the U.S. – particularly unemployment and “QE Infinity” – remain at the top of the list of concerns weighing on investor sentiment…a list of concerns that include the Eurozone debt crisis and the absence of China at the stimulus table. The global economic picture gets even gloomier if you take into account the International Monetary Fund’s plan to cut global growth forecasts and Caterpillar’s earnings forecast revision. With a lack of highly anticipated domestic reports for today, the focus will remain on Europe where tensions are building in Spain as protestors march against more austerity measures ahead of the new year’s budget. It doesn’t help that Spain’s Prime Minister seems to be playing a game of chicken, with his country’s financial future on the line, amid questions of whether or not Spain is going to seek a bailout. Have a great day!

Yesterday’s sharp sell-off in the precious metals

Yesterday’s sharp sell-off in the precious metals seems to have been met with some fundamental support but look for a bumpy ride as a choppy trading session is expected. Headlines out of the Eurozone have investors approaching the day with caution following weak business confidence data out of Germany that was released yesterday. Today, ECB President Mario Draghi will meet with German Chancellor Angela Merkel to discuss the Eurozone’s current situation amid calls from the IMF for the implementation of the European Stability Mechanism to ward of financial collapse of the regions peripheral economies. Here in the U.S., investors will take in reading on home prices and consumer confidence. Home prices were reported to have increased by .4% in July, a sixth consecutive increase. However, it was a case of ‘good but not good enough” as analysts were expecting a.9% increase. Have a great day!

 

Gold & Silver spot prices

	Bid	Ask	+/-	LDN	High	Low	Close
Gold	1771.22	1771.62	6.08	08:42	1775.01	1762.00	1765.19
Silver	34.22	34.27	0.21	08:42	34.51	33.90	34.02

The precious complex is in the red this morning as bullishness seems to be wearing off

The precious complex is in the red this morning as bullishness seems to be wearing off amid concerns of global economic malaise. With little in the way of domestic economic news to pressure markets the focus will shift across the pond to the Euro region where the newest headlines indicate that the German Business Climate Index fell for a fifth straight month to its lowest level since February 2010. Gold is managing a mere .82% drop on the day but the rest of the metals are seeing declines of more than 1%. Platinum is now trading at $1610, down more than 1.5% and palladium is down sharply to $637, down ~5% in early trading. Platinum has fallen from its day high of $1637 but continues to see support at current levels as concerns about wage disputes spreading across South Africa provide some downside resistance. Have a great day!

Gold & Silver spot prices

	Bid	Ask	+/-	LDN	High	Low	Close
Gold	1765.13	1765.53	-6.75	10:06	1771.15	1755.70	1772.20
Silver	34.11	34.17	-0.34	10:06	34.49	33.56	34.49

The precious metals complex is bouncing back nicely from a recent bout of sharp corrections

The precious metals complex is bouncing back nicely from a recent bout of sharp corrections throughout most of the week. Thursday’s disappointing global economic data out of Chine and Europe seem to be outweighed by positive sentiment supported by recent central bank actions that seek to defibrillate the sluggish economy. The drop in PGM’s, particularly platinum and palladium, has provided a good bargain hunting opportunity and with labor unrest still a persistent issue in South Africa platinum has been supported higher by more than 1%, currently trading at $1643. Palladium is up more than 1.5% and is currently trading at $671.50. Gold is up nearly 1% as well as the U.S. dollar gets thumped and investors head for higher ground. There’s not much in the way of domestic economic data on tap for today but being that it’s quadruple witching day, we can expect some volatility to end the week. Have a great day!

Gold & Silver spot prices

Gold & Silver spot prices

	Bid	Ask	+/-	LDN	High	Low	Close
Gold	1774.10	1774.60	6.87	06:59	1776.36	1767.10	1767.48
Silver	34.66	34.72	0.12	06:59	34.94	34.58	34.57

Disappointing global economic data has put downward pressure on many assets

Disappointing global economic data has put downward pressure on many assets across the financial landscape this morning. Reports out of China showed that the world’s #2 economy continues to suffer from a contracting manufacturing sector and the wave of disappointment continued into Europe with the regions PMI hitting lows not seen in quite some time.  Platinum reached as low as $1596 and is now trading at $1617 as bargain hunting provides some downside resistance…we’re off nearly $100 from just a few days ago! Palladium is down roughly 2% on the trading session and currently trading at $660. Much of the recent correction can be attributed to the agreement between Lonmin  and its miners at the Marikana operation and the hope for improving circumstances in South Africa. However, recent protests just outside Anglo Platinum’s Rustenburg operation have resulted in 2 more fatalities and is a reminder that the unrest persists. Have a great day!

That cushion to the downside I spoke of yesterday was quickly pulled

That cushion to the downside I spoke of yesterday was quickly pulled out from underneath the PGM complex after reports surfaced that striking miners at Lonmin had reached an agreement. Workers at Lonmin’s Marikana mine ended their six-week strike after agreeing to a 22% pay increase. The sell-off for both platinum and palladium was sharp but bargain hunting out of the far-east has the metals holding roughly flat or slightly up from yesterday’s close. Platinum is currently trading at $1635 while palladium trades at $673.50. In global economic news, the Bank of Japan announced a bond buying program of their own pushing Asian stocks higher overnight and leading to a slightly higher open in the U.S. markets. The BoJ’s $127 billion asset purchase is the latest attempt by world Central Banks to defibrillate struggling economies. The European Union and the United States have already taken action and, with the world’s third-largest economy joining the stimulus party, one is left to wonder when China will show up…perhaps sooner than later following PMI data due out overnight.  U.S. housing starts rose by 2.3% in August, outshining July but falling short of expectations. Yet another report on the U.S. housing market, existing home sales due out at 10:00 am EST will be watched with a keen eye as the Federal Reserve’s latest round of quantitative easing was aimed, in part, to support the beleaguered sector. Have a great day!

“What goes up, must come down”

Sir Isaac Newton once famously proclaimed, “What goes up, must come down” and while he was speaking of physical objects it looks as though his analysis can pertain to financial markets as well.  The jolt from last week’s QE3 announcement from the Federal Reserve pushed many financial assets to multi-month highs but the rally wore off with a vengeance to start this trading week. The precious metals complex was hit particularly hard as profit taking in the metals was exacerbated by a sharp decline in oil and modestly easing tensions in the South African mining community. The metals were pushed anywhere from 1% to more than 2% lower by the end of the trading session on Monday. Longs in the PGM complex took the opportunity to lock in profits following reports that wage negotiations would resume at Lonmin and Anglo American Platinum’s Rustenburg mining operation would restart today. Perhaps a more intriguing story is playing out in rhodium where the metal has jumped from $1100 to either side of $1400 in just the last day or so. Some would argue that rhodium, a byproduct of platinum mining, is simply catching up as Platinum moved roughly $300 north in a matter of weeks. While the unrest in South Africa appears to be softening the issues remain far from resolved giving the PGM complex some cusion to the downside.  Have a great day!

The shine of QE3 seems to be losing some luster

The shine of QE3 seems to be losing some luster as the recent rally provides a good opportunity to take some profits, particularly  in the precious metals complex. Platinum and palladium  are trading sharply lower to start the week with platinum down 1.4% to $1690 and palladium also off roughly .5% to $695. However, the PGM complex continues to see support from the ongoing troubles in South Africa. Reports indicate that wage talks are set to resume at Lonmin but that doesn’t mean the wage dispute will be solved anytime soon. Miners are demanding more than double their current wages. Anglo American Platinum said it’s Rustenburg operation would get back to work on Tuesday despite the continued threat of unrest by striking miners.  Today should be a relatively quiet session as there are no significant economic headlines this morning. Europe and China will come into focus throughout the week as manufacturing data and bond auctions will grab investors’ attention. Have a great day!

Assets across the financial landscape surged on Thursday

Assets across the financial landscape surged on Thursday following Fed Chairman Ben Bernanke’s announcement of actions the central bank will take to boost the sluggish economy. The precious metals complex experienced significant gains with gold having spiked 2% and silver settling the day nearly 4.5% higher by the end of the trading session. Platinum and palladium experienced sharp gains as well but continue to be largely supported by the labor dispute that’s playing out in South Africa. At the conclusion of the two-day FOMC meeting the Fed announce the heavily anticipated third round of quantitative easing saying that, beginning today, the Fed will purchase $40 billion worth of Mortgage Backed Securities per month. The Fed also announced they will look to keep key interest rates near zero until at least 2015 while also continuing Operation Twist aimed at helping to lower mortgage rates to stimulate the housing market. While the long and short-term effects of the Fed’s decision will no doubt be debated between both sides of the isle, especially heading into the election, the only thing that seems to be suffering is the U.S. dollar. The euro is already up .91% on the day and is trading at $1.31. In South Africa, mine workers at Lonmin’s Marikana mine rejected the company’s wage offer and labled it an “insult”. Marikana is the site of last month’s deadly confrontation between police and protesters. AS tensions mount, Platinum has broken through the $1700 level having reached $1714.5 before falling to $1694…still up nearly 1% from yesterday’s close. The metals could see some profit taking heading into the weekend which is not totally unexpected given the recent sharp gains. On the domestic economic front we have August retail sales data, August inflation numbers, August industrial production and some consumer sentiment data on tap. Have a great day!

If employment data is the litmus test by which the Federal Reserve

If employment data is the litmus test by which the Federal Reserve will determine further stimulus measures then it would seem that last week’s poor jobs numbers would make the decision a no-brainer.  However, markets remain relatively cautious ahead of the Fed’s announcement despite this morning’s report on initial jobless claims (up 15,000 to 382,000). Gold has seen some profit taking but that is to be expected following a ~$40 surge since Friday’s jobs report. The yellow metal corrected a bit on Wednesday but has found good support around $1736 ahead of the Fed’s 12:30 pm EST policy statement.  The PGM complex continues to see the bulk of its recent support coming from the ongoing wage disputes in South Africa’ mining sector. Anglo American Platinum, the world’s #1 platinum producer, was forced to suspend operations at its Rustenburg mine as workers there are being threatened and blocked from going to work. Platinum has added more than .5% in early trading currently trading at $1653 after touching as high as $1660.50.  Palladium has added more than .5% as well and currently trades just shy of its high at $683.50. The precious metals complex should trade in tight ranges until the Fed’s announcement and while there is a chance Mr. Bernanke could avoid pushing the QE3 button, it doesn’t seem likely and there is still more room to the upside. Buckle your seatbelts and hold on to your hats…today could get quite interesting. Have a great day!

 

Markets are finding support following the German Constitutional Courts decision

Markets are finding support following the German Constitutional Courts decision to allow the European Stability Mechanism to move forward. The decision has paved the way for the heavily anticipated program to take effect in an attempt to stabilize the peripheral economies. The euro surged to a high of $1.2936 on word of the decision and remains up .33% on the day at $1.2894. The next boost for the global economic picture, as well as the U.S. economic picture, could be the FOMC meeting that begins today which many are starting to believe will result in a third round of quantitative easing when the meeting concludes on Thursday. The precious metals complex is in the green early on in today’s trading session. Gold reached a high of $1749.50 and is now trading at $1738 (up .20%) while silver reached as high as $34.145 and is now trading at $33.60. More tension in South Africa has platinum up more than 2% at $1641.50 and reaching as high as $1659. It has been reported that Anglo American Platinum’s Rustenburg operation is shut down as the mines workers have been blocked from going to work by “unidentified individuals”. Anglo American Platinum (Amplats), the world’s number one platinum producer, is the latest South African mining company to be disrupted by ongoing labor unrest. A violent confrontation between police and protestors at Lonmin’s Marikana  mine last month left 34 dead and scores wounded.

Markets have been relatively subdued but could see some choppy trading today

Markets have been relatively subdued but could see some choppy trading today as investors position themselves ahead of a number of key economic events both here at home and abroad. On Wednesday, Germany’s Constitutional Court will deliver its ruling on the European Stability Mechanism which could have a major impact on the ECB’s ability to right the ship. “Headline Risk” in the region has grown to include Dutch elections which could bring to power a less than willing participant in the bailout arena. Here in the U.S. investors are awaiting the start of the FOMC meeting which will conclude on Thursday. Expectations of a third round of quantitative easing are high as recent indications from Fed Chairman Bernanke and a weak jobs report last Friday give many reason to believe that the Fed can’t hold out any longer. Tensions in South Africa, between mining companies and the mining unions, persist and continue to support the PGM complex as platinum is now trading above $1600 while palladium is trading slightly higher than yesterday’s close at $674. Have a great day!

 

Precious metals complex looks to be cooling off a bit following Friday’s surge

The precious metals complex looks to be cooling off a bit following Friday’s surge on the back of less-than-encouraging non-farm payroll data and weak import data out of China. The U.S. economy added just 96,000 jobs in the month of August…falling well short of the 120,000 that were expected. The short-fall prompted further speculation that the Federal Reserve’s hand could be forced with regard to more economic stimulus (QE3). The Fed begins their two-day meeting on Wednesday. Chinese imports fell 2.6% in the month of July and while knee-jerk reactions pressured Asian stocks lower, they were buoyed by hopes of further stimulus by China’s central bank.  Meanwhile, investors will be focusing on Europe to start the week as a decision by the German Constitutional Court, on the legality of the European Stability Mechanism (ESM), will be Wednesday’s main event. Not surprisingly, the precious metals have seen some selling as profit-taking creeps into the market. However, the anticipation of Fed action on Thursday should provide some support for the metals. There are no economic reports on tap for the day. Have a great day!

U.S. Jobs data was released earlier this morning and showed only 96,000 were created

U.S. Jobs data was released earlier this morning and showed only 96,000 were created in the month of August. That’s well off the anticipated mark of 120,000 jobs and, though the unemployment rate fell to 8.1% from 8.3%, the labor force participation rate – the percentage of working-age persons in an economy who are employed or unemployed but looking for work – fell to its worst level in over 30 years. My arithmetic tells me that, with employment being cited as a key factor in the Federal Reserve’s decision to inject the economy with more stimulus, it’s becoming harder to make the case that the economic brain trust of this country won’t hit the QE3 button. There are no other economic reports on tap for today and frankly, if there were, it wouldn’t matter because assets across the financial landscape are surging already. The precious metals complex is well in the green early in the trading session as many begin to position themselves ahead of next week’s FOMC meeting that concludes on Thursday. Gold is up nearly 1.5% at $1730 with silver up 2.25% at 33.41. With platinum already being supported by the ongoing tensions in South Africa the white metal has been pushed even higher. Platinum flirted with the $1600 mark and is now trading at $1596. Palladium is only modestly higher at $648. Have a great weekend!

Strong support on the back of ECB President Mario Draghi’s outline of an aggressive measure to stem financial collapse

Markets across the financial landscape are seeing strong support on the back of ECB President Mario Draghi’s outline of an aggressive measure to stem financial collapse in the euro region’s peripheral economies. The bond-buying program has a new moniker, “Monetary Outright Transactions”, and will focus on short-term borrowing costs of countries like Spain and Italy which, like their benchmark 10-year borrowing costs, have soared to unsustainable levels in recent months. There are no limits on the amount of bond buying that will take place but Mr. Draghi did say the bond buying will end when objectives are met or countries fail to comply with certain requirements. The announcement caps off a little more than a month of anticipation following comments from the ECB President that he would “do whatever it takes” to save the euro. With that behind us, investors will now focus on employment figures ahead of next week’s FOMC meeting. Employment is a key factor in the QE3 equation as the Fed cited unemployment rates as a cause for concern. Earlier this morning, ADP announced private sector job growth had risen by more than 200,000 and jobless claims were reported to have fallen by 12,000….both better than expected. The U.S. government jobs data will be released tomorrow. Gold pushed above the $1700 level as the Euro strengthened on the back of the ECB announcement. The yellow metal is now trading at $1706 while silver trades around the $32.70 marks. Platinum continues to be supported as conditions in South Africa, regarding wage disputes, persist and threaten to get worse. The white metal is now trading at ~$1588. Have a great day!

 

Nearly 1.3 million new cars and trucks were purchased in the month of Augus

The PGM complex received some support following yesterday’s report of strong auto sales figures. Nearly 1.3 million new cars and trucks were purchased in the month of August, up 20% from the same time last year. GM, Ford and Chrysler all posted increases of more than 10%. However, ISM data showed manufacturing activity slumping yet again. The index slipped to 49.6 from the previous months 49.8. Markets across the financial landscape ended mixed on Tuesday as investors await a key event in Europe and the all-important government jobs data on Friday. The precious metals complex is trading slightly lower than yesterday’s close but should remain in a tight range as there are no more economic reports on tap for today. On Thursday, ECB President Mario Draghi takes center stage in a heavily anticipated meeting of Eurozone central bankers. He is expected to outline his plan for bringing borrowing costs under control. Have a great day!

While Friday’s Jackson Hole symposium, highlighted by Chairman Bernanke’s speech

Good Morning,

 

While Friday’s Jackson Hole symposium, highlighted by Chairman Bernanke’s speech, didn’t result in any definitive stimulus action by the Fed, Mr. Bernanke’s rhetoric did give investors reason to believe that QE3 is on the horizon. This promptly pushed the precious metals complex higher and with the light volume heading into the Labor Day weekend gold quickly tested the $1700 level while silver breached $32. Platinum is now above the $1550 mark and palladium was able to pare losses from earlier in the week and is now trading above $635. No longer is a crumbling economic foundation the parameter by which the Fed will decide on further monetary easing but a merely stagnant economy seems like it will be enough to tip the scales in favor of QE come the next FOMC meeting on September 12^t– 13^th. Chairman Bernanke cited unemployment, currently at 8.3%, as a cause for concern and, come Friday’s government jobs data, could further support the case for an economic booster shot. In the broader global economy, China’s government manufacturing index showed a decline to 49.2 from 50.1 indicating that factory activity is contracting. However, hopes of progress on the European front seem to have counter-balanced the concern, for now, ahead of the ECB’s highly anticipated meeting on Thursday. ECB President Mario Draghi is expected to release details of a bond buying program in the region aimed at thwarting fiscal collapse in peripheral economies and hopefully kick-starting a rally out of the current economic rut. The U.S. Markets will take in the ISM Manufacturing Index at 10:00 am EST followed by July construction spending figures. Auto Sales will come out throughout the day. Have a great day!

Gold & Silver spot prices at 6:33AM.

 

	Bid	Ask	+/-	LDN	High	Low	Close
Gold	1691.06	1691.31	0.30	06:33	1697.35	1689.53	1690.88
Silver	31.98	32.03	0.00	06:33	32.33	31.92	32.01

Chairman Bernanke’s Jackson Hole discourse is minutes away

The moment of truth is upon us as Chairman Bernanke’s Jackson Hole discourse is minutes away. Investors have been anticipating, for weeks, that Mr. Bernanke will discuss further quantitative easing measures as he has done in the past. However, recent economic data and the developments in Europe have given many reason to believe that QE3 will remain in the Feds back pocket…at least until the next FOMC meeting in September. European Central Bank president Mario Draghi will not be in attendance has the ECB prepares for their meeting on September 6^th where it is widely expected that Mr. Draghi will outline a bond buying program in the region. For now, all we can do is wait. The precious metals are trading higher ahead of the speech with Gold up nearly .5%, platinum up 1% and palladium up more than 1.25%. Thin trading conditions have been the norm for the entire week and could give way to sharp movements in either direction as the speech unfolds.  Have a great day and a safe Labor Day weekend!

What is silver bullion

Silver bullion is silver in the form of bars, coins, ingots or rounds. The best known silver coins are silver Eagles, Maple Leafs, Kookaburras and Britannia's. But not all silver bullion coins are created equal, and buyers must be aware of the differences to make educated purchases. Not all coins are struck to the same fineness. Also while some silver bullion coins have unlimited mintages, others offer smaller numbers and sometimes higher prices. The lowest cost way to buy silver bullion is in the form of silver bars and silver rounds. Many investors prefer rounds over bars because they are minted in the form of a coin and offer greater flexibility when it comes time to sell your silver. If you buy a one-hundred ounce silver bar you are restricted to selling the entire one hundred- ounces at one time. Whereas if you bought one-hundred one ounce silver rounds you have the greater flexibility of selling any number of rounds at anytime.

Westminster Mint offers a wide selection of the most popular silver bullion items including government issue, privately minted and brand-name products. All of the items we offer are internationally recognized. Our privately minted silver bars and rounds begin as silver grain bought directly from a refinery or as COMEX deliverable 1,000 ounce bars. The silver grain is delivered to us in sealed buckets. Each bucket is accompanied by an assay certificate attesting to its purity. The silver we receive is .999 pure or better. The industrial silver bars we buy are also sent directly from refiners and each bar is hallmarked stamped with its weight and purity.

We melt silver grain in batches of ten thousand-ounces at temperatures in excess of 1600 degrees where it turns into liquid. The silver is then poured into billet molds which hold eight-hundred ounces and then is extruded into strips. The strips are rolled to the precise thickness of the silver bars or silver rounds being struck. Each blank bar or round is individually weighed and cleaned before it is struck into a finished bar or round. Each item is individually hallmark stamped with its exact weight and purity.

Refinery sealed barrels of .999 silver grain being unloaded





Sacks of silver grain with Assay certificates

 

33,000 ounces of silver on its way to be melted down and transformed into silver rounds

 

10,000 ounces of silver being melted at 1600 degrees until it turns to liquid
Silver being poured into eight hundred ounce billet molds 

 
Rolls of silver from the billet moulds ready to be extruded 

Silver rounds being struck five hundred rounds per minute

Jackson Hole symposium is losing some luster

It appears as though the heavily anticipated Jackson Hole symposium is losing some luster as key figures from the European Central Bank have decided not to attend and more economic data lends support to the notion that QE3 will remain in the Fed’s back pocket on Friday. ECB President Mario Draghi has pulled out of attendance due to the fact that he is scheduled to release details of a bond buying program, aimed at helping struggling peripheral economies in the euro region, in about a week’s time. Earlier this morning, a revised estimate of U.S. second-quarter GDP growth showed the economy grew by 1.7% as opposed to the 1.5% previously reported. While that doesn’t necessarily rule out that QE3 could happen, it doesn’t exactly give Chairman Bernanke more reason to push the stimulus button when he speaks on Friday. The precious metals complex remains relatively unchanged from yesterdays close. However, thin trading conditions amid anticipation of Friday’s events could potential cause wide trading ranges as investors position themselves heading into the end of the week. Pending home sales data and the Beige Book are on tap for today. Have a great day!

Friday’s Jackson Hole symposium

The precious metals complex is under pressure this morning as hopes for more central bank action seem to be waning ahead of Friday’s Jackson Hole symposium. Gold had dropped ~$25 from yesterday’s close and has since clawed its way back to the $1670 level…still nearly .5% in the red. Platinum is trading down ~$30 from yesterday’s  close while palladium is down more than $10. Sentiment regarding further Fed stimulus was boosted by last week’s release of July’s FOMC meeting minutes. However, mixed signals from inside the Fed camp as well as economic data, both domestic and global, are leading many to believe the overall situation may not be definitively bad enough to warrant a third round of QE. Spanish short-term bond yields fell to .946% from 2.434% indicating that tensions in the Eurozone are calming a bit. The most recent auction helped push the Euro through the $1.25 mark. A more telling sign of relative stability in the Eurozone is the fact that Spain’s benchmark 10-year yields are holding steady at 6.40% - not great but then again it’s not getting any worse. Here in the U.S. the Case Shiller 20-city Home Price Index showed prices rising in all of the cities analyzed. August consumer confidence data is set for release at 10 am EST. Have a great day!