Stock Sell-Off Continues to Boost Gold Prices

APMEX

12/10/2018 10:44:43 AM

Daily Gold & Silver Market Report – 12/10/2018

• Ongoing stock market losses give Gold a boost.
• American Silver Eagles see uptick in popularity for November.
• Bitcoin volatility triples in recent weeks.

Last week, investors continued a significant sell-off of stocks, in the U.S. and elsewhere. This ongoing pressure to sell shares has boosted Gold. It is widely known people turn to safe-haven investments such as Precious Metals when riskier assets become unpopular. A few months ago, little was mentioned about the possibility of a recession. This month, however, the idea is gaining traction, according to Investing.com. This possibility has served as a reminder to many in the market that holding a diversified portfolio is essential in times of economic downturn. For much of the year, Gold was in a price decline, held down by a strong U.S. dollar and the bullish stock market. This pattern changed in September, as concerns of an international trade war began to firm. Since then, Gold prices have had many positive weeks, as stock markets have been riddled with several setbacks.

Central banks around the globe have been adding to their Gold holdings throughout the year, although banks alone are not responsible for the newfound support for the yellow metal. The Investing.com article goes on to suggest, “Gold’s fortunes are being driven by American stock investors’ collective buying and selling of GLD shares. And nothing motivates them to redeploy capital into Gold to diversify their stock-heavy portfolios like major SPX selloffs.” If the stock market remains weak in the coming months, it is likely Gold will continue to see gains.

U.S. Mint Data Shows Heightened Interest in Silver Eagles

American Silver Eagles have long been one of the most-purchased bullion coins in the world. For much of the last year, the spot price of Silver has been held down by a strong U.S. dollar and trade war concerns between President Donald Trump and China’s leader Xi Jinping. However, recent data from the U.S. Mint shows November sales of Silver Eagles increased to more than 1.6 million coins. In October, the number was just over 1.4 million. Several analysts have begun to predict an upcoming rally for Silver, with bargain seekers picking up more of the Precious Metal in recent weeks. The current stock market instability could quickly bring in additional support buying Silver assets.

Falling Prices Spur New Trouble for Bitcoin

Prices across the cryptocurrency market have fallen in recent weeks, with Bitcoin hitting new lows for the year. With all the enthusiasm from the investment community over the possibilities of Bitcoin, Cointelegraph feels much of the recent volatility is under-reported. As of Sunday, the Bitcoin Volatility Index reflects that, compared to the U.S. dollar, volatility has risen 300 percent in the last month. Even as setbacks continue to pile up, many market watchers are still hopeful that mainstream acceptance will soon lead to a significant rally.

At 11:05 a.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,248.20 Down $1.70
• Silver, $14.64 Down $0.07
• Platinum, $784.10 Down $8.30
• Palladium, $1,231.20 Down $4.60

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