Despite Inflation, Silver Prices Continue to Rise

APMEX

6/15/2018 11:03:27 AM

Daily Gold & Silver Market Report – 06/15/2018

On Wednesday, the Federal Reserve raised the interest rate, which some experts predicted would lead to a decline in Silver prices. However, Silver continued to climb in price, appreciating more than 5 percent over the past few trading sessions. As reported by Seeking Alpha, the Fed may be whitewashing current inflation pressures. This leads some experts to anticipate higher-than-normal inflation this year, which would likely drive Silver prices higher in the second half of 2018.

Currently, the Gold-Silver ratio has begun to return from highs of as much as 80, with Silver outperforming Gold by a considerable margin. This has likely contributed to the unexpected strength of Silver prices, which stand in contrast to sell-offs of Silver that typically occur just before predicted interest rate hikes.

Rare George Washington Gold Coin Set for Auction

An uncirculated 1792 Gold Eagle coin bearing the image of President George Washington is set for auction in August. What makes this coin so significant among rare coins is the known fact that Washington refused to be depicted on American currency, claiming the idea was “monarchical.” It is thought by most numismatists this coin was created as a presentation to Washington after the Revolutionary War as plans for the U.S. Mint were underway.

Currently scheduled for August 16, 2018, the auction will take place at the World’s Fair of Money in Philadelphia, Penn., according to Reuters. It will be the first time the Washington President Gold Coin has been on public sale in 128 years.

SEC States Bitcoin, Ethereum are not Securities

SEC Director of the Division of Corporation Finance William Hinman, speaking on cryptocurrencies and initial coin offerings, said Bitcoin and Ether are not considered securities. Hinman added other initial coin offerings, known as ICOs, are considered securities and come under jurisdiction of the SEC and all relevant laws that relate to securities. According to a report by CNBC, Hinman listed method of sale and consumer expectations as factors in determining whether an ICO would be considered a security. 

Addressing Bitcoin specifically, Hinman explained its decentralized management is the primary reason it is not a security. The Ethereum network is also decentralized, which puts the cryptocurrency in the same category as Bitcoin. Hinman stopped short of addressing the securities status of other ICOs, such as Ripple, currently the subject of a lawsuit alleging it is a security on the grounds that in the future, more decentralized networks and systems that regulate their own digital tokens as securities “may not be required.”

At 12:03 p.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,280.30 Down $27.20
• Silver, $16.67 Up $0.66
• Platinum, $890.80 Down $23.10
• Palladium, $993.20 Down $21.10

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (ET)! Or call us Fridays until 6 p.m. (ET)! If you have any questions about Precious Metals investing or simply would prefer to place your order by telephone, we are here to help.