Apmex Gold & Silver Market Report -- 8/17/2011

The following is a commentary from APMEX

APMEX Morning Gold & Silver Market Report -- 8/17/2011
(Ryan Schwimmer), APMEX - Commentaries

EURO ZONE PLAN BRINGS NO RELIEF TO EQUITY MARKETS

Overseas trading was mixed last night, while U.S. Stock futures are poised to open higher. Gold prices have continued to climb since yesterday's gains. Silver, which has not experienced the same recent gains as gold, has also trended up the past several days and is once again above $40/oz.

The highly anticipated meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel yesterday did not do enough to satisfy world investors. The growing feeling is that plans for closer monitoring of fiscal policy in the eurozone are not enough to stop the debt problem from spreading to other countries.

In the U.S., the July Producer Price Index (PPI) rose 0.2%, while core PPI, which excludes the "volatile" markets of food and energy, rose 0.4%, the largest increase since January. Higher PPI numbers point to inflation, which is yet another bad sign for the sluggish global economy.

At 8:00 am (CT) the APMEX precious metals spot prices were:

Gold - $1,788.50 -- Up $1.50.
Silver - $40.18 -- Up $0.26.
Platinum - $1,845.90 -- Up $27.80.
Palladium - $779.60 -- Up $21.10.

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Mid-Day Gold & Silver Market Report -- 8/17/2011
(Stephanie Chandler), APMEX - Commentaries

SAFE HAVEN BUYING KEEPS GOLD STRONG; SILVER "CATCHING UP"

Gold has continued to trade steady today with small gains from early morning prices as consumers look to venture back into stocks and take profits in gold as it nears $1,800. Silver makes gains this afternoon "catching up to gold," says George Gero, senior vice president at RBC Capital Markets. Gero adds that silver has trailed a little slower behind gold despite it's safe haven appeal due to the fact that is so strongly tied to the industrial markets. Good news for platinum and silver, Will Rhind, head of U.S. Operations for ETF Securities notes that there has been an influx of order for these metals.

Gold is heading into its busiest season, August through the end of December, and all eyes are one the metal as the prices near $1,800 so far this season. The historical average of gain for the last 11 years during this period has been 11%, which would put prices around $1,989. President of Tower Trading, Anthony Neglia, trades in both gold and silver still feels the reasons behind gold buying is still strong saying, "the basic principle of what's driving gold and the moment [and] it's primarily the investor buyers out of Europe, the U.S. and Asia looking...to protect themselves against paper currencies."

The rise in stock markets could be a result of Obama's announcements to create packages that will stimulate growth and create jobs by asking Congress for billions of dollars in fresh spending. Hugo Chavez, President of Venezuela, has taken money from historical safe-haven currencies (Swiss franc and English banks) and putting it into alternate currencies such as Brazil, China and Russia while also moving hundreds of tons of gold into its own central bank vaults.

At 12:00 pm (CT) the APMEX precious metals spot prices were:

Gold - $1,789.80 -- Up $2.80.
Silver - $40.25 -- Up $0.32.
Platinum - $1,841.50 -- Up $23.40.
Palladium - $776.60 -- Up $18.10.

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Closing Gold & Silver Market Report -- 8/17/2011
(Craig C. Calvin), APMEX - Commentaries

GOLD BREAKS ANOTHER RECORD; MORGAN STANLEY ASIA WARNS CHINA MAY STOP BUYING U.S. TREASURIES

Gold ended the day by hitting another record, finishing at $1793.80 per ounce, a gain of $8.80. This, after trading as high $1,797 earlier in the day, driven by investor apprehension over the debt crisis in Europe and an overall lack of confidence in the economy worldwide. Silver also ended the day on a high note, settling at $40.35 per ounce, its best performance in two weeks.

Stocks here in the U.S. experienced a second session of losses today, with the Dow falling 17.29 points and the S&P 500 dipping 3.18 points. In response to today's market losses, Stuart Freeman, Wells Fargo Advisors' chief equity strategist, said, "We'll likely continue to be in a volatile space here for awhile; we're mostly out of earnings season, and guidance for the end of the year wasn't real specific for most companies."

An executive with Morgan Stanley Asia is warning that China may be planning to stop purchasing U.S. treasuries in response to this country's slow economic growth. In an interview with CNBC, Steven Roach, Morgan Stanley Asia's non-executive chairman, said that if that happens, the U.S. could experience an increase in interest rates, a weaker dollar, and an inability to fund itself the way it has been. "This is China's wakeup call," said Mr. Roach, adding that China can "no longer afford to stay the course of export-led growth that is hooked on the bandwagon of the American consumer." He went on to say that China will be turning more towards internal consumption as part of that its updated five-year plan.

Venezuelan President Hugo Chavez announced today that he intends to nationalize the gold industry in Venezuela in an effort to increase gold reserves for the country. In an appearance on state-run television in Venezuela, Chavez stated, "We are going to nationalize the gold and we are going to convert it, among other things, into international reserves because gold continues to increase in value." President Chavez's announcement came after a government report was leaked yesterday that recommended repatriating 90% of the country's gold reserves, of which approximately 63% is being held abroad right now.

At 4:25 pm (CT), the APMEX precious metals spot prices were:

· Gold - $1,793.60 - Up $6.60

· Silver - $40.36 - Up $0.44

· Platinum - $1,845.00 - Up $26.90

· Palladium - $778.50 - Up $20.00