Morning Gold & Silver Market Report – 3/7/2013
GOLD HOLDS ON TO GAINS; US MINT GOLD EAGLE SALES UP 240%
The Gold price has been trading in a tight range most of the week but speculation that central banks will continue loose monetary policy, or quantitative easing, has kept a floor under prices. Quantitative easing has been a boon for Gold in recent years by pressuring long-term interest rates and supporting fears of inflation. Eugen Weinberg, head of commodities research at Commerzbank, said, “Gold as inflation protection should get more demand from investors in the second half of the year. Right now, the market participants are looking for more yield and they're finding it in other asset classes like equities.” He also said that investors aren’t really looking for safe havens right now.
The United States Mint completed the month of February 2013 with a year over year increase from February 2012 in mintage and sales of the 1 oz Gold American Eagle of 240%, the largest year over year increase in any monthly sales since the financial crisis of 2008. This increase followed the January year over year increase of 47% in mintage and sales of the same Gold coins. In a similar manner, the United States Mint reported an increase in the mintage and sales of the 1 oz Silver American Eagle for February 2013 over February 2012 of 126%, the largest increase in sales during the month of February over the same month for the previous year since the financial crisis in 2008. For January 2013, the increase in sales of the Silver coin was 23% as compared to the sales in January 2012. “The increase in sales by the United States Mint of the 1 oz Gold and Silver coins is evidence of the significant demand for the physical precious metals in the market place. According to the communications with our customers, more buyers are turning to physical Gold and Silver because of concerns over the U.S. Debt and the crisis this huge debt level may bring to the U.S. Economy over the next several years,” stated Michael Haynes, CEO of APMEX.
At 9:08 a.m. (EST), the APMEX precious metals spot prices were:
- Gold, $1,585.00, Up $8.10.
- Silver, $29.09, Up $0.24.
- Platinum, $1,601.20, Up $19.40.
- Palladium, $757.50, Up $18.40.
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