Daily Gold & Silver Market Report – 12/12/2016

Cassie Bastien

12/12/2016 9:56:00 AM

HOLIDAY SALES’ NUMBERS

U.S. Proof and Mint set sales are increasing, following traditional Christmas purchases. Dave Harper with Numismatic News wrote the “2016 Silver proof set was up by 12,014 to 333,356. The uncirculated coin set was up by 10,197 to 248,455.” Also, with the U.S. Mint’s household limits removed, the Gold Walking Liberty Half Dollar increased from 8,032 to 57,008, with a maximum mintage listed at 70,000. In addition, sales for the mint’s Standing Liberty Gold Quarter, with a maximum mintage of 100,000, were up by 1,032 to just over 84,000. The ever-popular Silver Eagle you might ask? That sold out for the year!

FED MEETING HAPPENS WEDNESDAY

The U.S. Federal Reserve is expected to finally raise interest rates at this week’s meeting but the big question here, according to MarketWatch Senior Economic Reporter Greg Robb, is “How does the shock outcome of the presidential election change the economic landscape?” Analysts agree there will be an announcement for the Fed to increase its target funds range to between 0.5 percent and 0.75 percent after a two-day meeting. Robb writes, “Fed officials are expected to duck questions about how the incoming [Donald] Trump administration’s plans for fiscal, trade and regulatory policies will impact the economy and the central bank’s policy outlook.” According to Vincent Reinhart, chief economist for Standish Mellon in Boston, the Fed stayed out of presidential politics and failed to mention the election in its September or November meeting minutes. Economists also believe Fed officials are unlikely to change their economic forecasts or interest rate projections over the next three years. Robb continued, “Congress is expected to press ahead with tax cuts next year, and rate hikes could be needed to keep this stimulus from becoming inflationary.” The end of Federal Reserve Chair Janet Yellen’s tenure is only 14 months away and analysts do not expect her to leave early or to stray from her policy instincts.

INVESTORS FLOCK INTO BIGGEST BUBBLE IN HISTORY

As President Trump is set to take over the White House in six weeks, some Precious Metals investors are selling Gold and jumping into the markets, hoping for big profits. However, Steve St. Angelo with SRSrocco Report and GoldSeek.com says “the worst time to jump into a market is when everyone else is doing the same thing.” Instead of staying logical, St. Angelo explains “investors lose all economic and financial sense when asset prices start to go insane,” The GoldSeek report included a chart showing a 36-year timeframe with the Dow Jones industrial average and the U.S. debt increasing at the exact same ratio 23 times, saying this is no coincidence. St. Angelo explains there is a race between the Dow and the debt to reach 20,000 first, putting his bet on the debt as it is only $100 billion away from that mark. Additionally, St. Angelo notes “the U.S. Retirement Market is up 24 times since 1980, and the S&P 500 is up nearly 21 times. … [Also] nearly 10% of U.S. oil production is being produced by either bankrupt or [financially] challenged energy companies.” He had mentioned in a previous article that ExxonMobil, the largest U.S. oil company, had to borrow $8 billion in 2015 to pay dividends or capital expenditure.  At the same time, Chevron, the second largest U.S. oil company, had to borrow $18 billion for the same reasons. St. Angelo says holding onto Precious Metals can help you protect yourself when things finally go downhill. While he cannot speculate on the timing of a U.S. financial and economic crash, he says the wise thing to do here is “to make sure one holds onto their “Precious Metals Insurance.’”

At 10:56 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,214.80 Up $0.20
• Silver, $16.64 Up $0.21
• Platinum, $931.00 Up $16.90
• Palladium, $726.00 Down $6.00

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