Apmex Gold & Silver Market Report -- 8/10/2011

The following is a commentary from APMEX

APMEX Morning Gold & Silver Market Report -- 8/10/201115:01 8/10/2011
(Peter LaTona), APMEX - Commentaries

DOES YESTERDAY'S FED STATEMENT MAKE QE3 MORE LIKELY?

According to Goldman Sachs, the answer would be yes. In a statement yesterday, chief economist at Goldman, Jan Hatzius said, "we now see a greater-than-even chance that the FOMC will resume quantitative easing later this year or in early 2012. We have changed our call because today's statement suggests that the committee's reaction function to incoming economic news is more dovish than we had previously thought."

Yesterday, the U.S. stock market experienced a 600 point swing, closing up over 400 points. The upswing occurred as the market digested the afternoon Fed statement. Chairman Bernanke's statement seems to promise that the Fed would leave interest rates at their current low level for another two years. This morning, stock futures are falling, as markets continue to digest the implications of the Fed Statement. Gold prices have held steady throughout, while silver prices have seen a decline.

The U.S. Mint has halted the sale of gold collector coins to give them time to reevaluate their pricing in light of recent gold prices. This re-pricing is expected to be complete by late Wednesday. This does not affect the sale of American Eagle bullion coins, which are not sold direct to the public. They are only sold to authorized purchasers of the U.S. Mint, of which the American Precious Metals Exchange is one of thirteen.

At 8AM (CT) the APMEX precious metals spot prices were:

Gold price - $1,767.40 -up $22.40
Silver price - $38.51- up 58 cents
Platinum price - $1,758.30 -- up $1.90
Palladium price - $746.00 -- up $9.40

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Mid-Day Gold & Silver Market Report -- 8/10/2011
(Timothy Oakes), APMEX - Commentaries

MARKETS' OUTLOOK WORSENS

The stock market has taken a downward turn, erasing the gains of yesterday, largely due to the relatively negative information coming out regarding France's Societe General. Societe General is viewed as the largest bank in France and has seen a 21% decline. Bank of America and other large financial institutions are feeling the stock market pinch. The main issue is people were hurt during the previous financial crisis and regretted not getting out of the markets when they could. According to Ed Crotty, Chief Investment Officer at Davidson Investment Advisors, "Memories are fresh. People who during the last financial crisis did not sell right away, next time around are ready to sell quick and ask questions later. People are seeing this as 'next time.'"

A couple of interesting items to keep an eye on in the global context appear to be North and South Korea trading artillery salvos. This was the same location as previous a previous shelling in November. The other item that bears watching is the continuing escalation of violence in Syria. Turkish Prime Minister Tayyip Erdogan, whom at one time was a close ally of Syrian President Bashar al-Assad, declared in a visit to Damascus, "In Syria, the state is pointing guns at its own people...Turkey's message to Assad is very clear: stop all kinds of violence and bloodshed." The U.S. Treasury Department has frozen the assets of the Commercial Bank of Syria in an attempt to stem the financial support of Assad's assault on the citizens of Syria.

At 12:09 PM (CT) the APMEX precious metals spot prices were:

Gold price - $1,783.60 -up $38.60
Silver price - $39.24- up $1.25
Platinum price - $1,769.00 -- up $12.60
Palladium price - $730.00 -- down $6.50

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Closing Gold & Silver Market Report -- 8/10/2011
(Craig C. Calvin), APMEX - Commentaries

U.S. STOCKS FALL AMID EURPEAN DEBT WORRIES; GOLD PRICES CONTINUE TO BREAK RECORDS

Stocks in the U.S. fell to their lowest level in nearly a year as a result of general concerns about the overall global economy and specific concerns that the European sovereign-debt crisis won't be adequately contained. The Dow closed with a 4.6% (520-point) drop, and the S&P 500 dropped 4.4%. A market strategist with Stifel Nicolaus & Co. explained the drop by saying, "The message is that the market is concerned about the financial industry." He added, "...the banks are exposed to a deteriorating economy. The European debt crisis has a whole set of issues. The concern is about a spillover effect of that."

Gold prices once again hit a record in trading today, at one point rising above $1,800 as investors continued to look to the precious metal as a safe haven from increasing economic uncertainties. James Dailey, a manager with TEAM Financial Management LLC, said in a phone interview today, "The race to debase currencies is on. Gold will continue to appreciate until there is a fundamental shift in government policies." In the wake of Standard & Poor's downgrade of the U.S.'s credit rating this past Friday, gold prices have increased $132.50 so far this week.

At 4:15 pm (CT), the APMEX precious metals spot prices were:

· Gold - $1,799.80 - Up $54.80

· Silver - $39.41 - Up $1.42

· Platinum - $1,769.80 - Up $13.40

· Palladium - $731.10 - Down $5.50