U.S. Dollar Descends Amid Market Unrest

APMEX

12/28/2018 9:06:30 AM

Daily Gold & Silver Market Report – 12/28/2018

• U.S. dollar sees losses amid stock market unrest.
• Rare coin market in U.S. exceeds $4 billion for 2018.
• Palladium shortage could mean continued price gains.

The U.S. dollar lost strength Thursday as high market volatility sent many investors fleeing to safe-haven assets such as Gold. The Wall Street Journal Dollar index, which measures the American currency against more than a dozen other notable sovereign currencies, was down 0.3 percent at 6:30 p.m. (ET). After sharply declining, U.S. stocks soared as Thursday evening approached. The Dow Jones industrial average dropped as much as 611 points early in the day but added 260 points by late afternoon. Interest in Gold lifted prices approximately 0.6 percent, according to WSJ.  

U.S. Rare Coin Trade Exceeds $4 Billion in 2018

A recent release indicates the U.S. rare coin market saw sales over $4 billion during 2018. The data was collected by a nonprofit organization, the Professional Numismatists Guild, whose members include many respected collectible coin and paper money dealers. As reported by Coin News, many buyers saw quality as a significant motivating factor to pay top dollar for acquisitions. A first-rate 1913 Liberty Head Nickel, graded Proof 66 by PCGS, was the most valuable coin sold at auction, bringing in $4,560,000. Average prices did decline for lower-graded coins that are readily available, but the best rare coins sold for a premium this year.

The $4 billion market total does not include sales by the U.S. Mint or coins such as American Eagles. Gold and Silver bullion coins have long been regarded as one of the best assets for portfolio diversification but this year, many buyers were attracted to older, collectible coins, as well. Professional Numismatists Guild President Barry Stuppler says, “With the stock market dropping during the fourth quarter of 2018 we saw an increase in interest in the rare coin market with some people taking profits from stocks and buying coins that have proven to show sizeable and consistent increases in value over the years, as well as buying Precious Metal.”

Ongoing Shortage Means More Wins for Palladium

Palladium prices have continued to soar even as many other commodities have suffered from trade tensions between the U.S. and China. Analysts predict even more gains next year as a supply shortage has no end in sight. An essential component in the catalytic converters of fuel cell vehicles, shortages of Palladium began to drive spot prices upward to record highs in 2018, according to a Bloomberg report on Yahoo! Finance. Even in the face of a slowing car market in China, the Precious Metal continued to bolster support. Production of Palladium is projected to fall behind consumption by 603,000 ounces in 2019, with some expecting the deficit to continue into 2020, as well. 

At 9:50 a.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,280.50 Down $0.80
• Silver, $15.45 Up $0.12
• Platinum, $796.80 Down $2.60
• Palladium, $1,273.60 Up $6.10

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