Silver is higher against all currencies today and remains
near yesterday’s 31 year high of $36.75/oz. Gold is slightly higher
against most currencies, especially the Swiss franc and euro.
While most of the focus continues to be on North Africa
and the Middle East, the not inconsequential matters of the European
sovereign debt crisis and the US’ dire fiscal situation continue to
bubble away beneath the radar.
Greek and Portuguese bonds have taken another hammering
this morning. The Greek 10-Year yield has surged to 12.44%, up another 35
basis points today alone, and Portuguese 10-Year has surged to 7.58%, another
22 basis points. The recent “bailouts” and failure to properly
restructure the debt shows that the sovereign debt crisis is far from
contained.
The US recorded its biggest monthly deficit in history
yesterday with a $223 billion deficit for February alone, the 29th straight
month of deficits – a modern record. This does not bode well for the
beleaguered dollar and could result in further sharp falls in the value of
the dollar.
The dollar is increasingly out of favour with traders and
central banks internationally and the real risk of a US debt crisis could see
the dollar’s reserve currency status challenged sooner than even the
more bearish dollar bears expect.
Lloyds TSB's Assetwatch survey finds gold and silver beat
all other assets in 2010 due to investors looking to “protect the value
of their investments amid the renewed uncertainty over the global economic
outlook including the debt concerns in the eurozone and rising
inflation.”
Gold
Gold is trading at $1,434.21/oz, €1,029.73/oz and
£886.46/oz.
Silver
Silver is trading at $36.36/oz, €26.10/oz and
£22.47/oz.
Platinum Group Metals
Platinum is trading at $1,800.95/oz, palladium at
$780.00/oz and rhodium at $2,350/oz.
News
(Financial Times) -- Silver prices rise
by 80% (Lloyds TSB Precious Metals ‘Top Investment’)
Precious metals were the top performing investment for the second consecutive
year, after their value jumped by 42 per cent as people sought a safe haven
from inflation, according to new research published by Lloyds TSB on Monday.
It is the fourth time in the past five years that precious
metals have topped the tables for the best asset class, as continuing
uncertainty over the prospects for the global economy pushed people into
buying gold, silver and platinum.
The value of precious metals has risen by 365 per cent
over the past decade, nearly double the increase for the next best performing
asset during the same period - residential property, which made a gain of 198
per cent.
Silver outperformed the other precious metals in 2010 with
prices rising by 80 per cent, more than two and a half times the increase in
gold prices and four times the 20 per cent rise in the value of platinum.
As well as being seen as a safe haven investment,
pressures on the supply side and high demand for industrial uses contributed
to the strong rise in the price of silver, said Lloyds TSB.
Commodities were the second best performing asset class
during 2010 returning 30 per cent, while they were the third best during the
past decade, with a 176 per cent increase in value.
This outperformance has continued into 2011, driven by a
38 per cent jump in the price of cotton since the start of the year, driven
by a combination of increasing demand from Asia and greater supply side
pressures as flooding affected some of the major cotton producing countries.
All nine asset classes produced a positive return during
the past year, although people who held their money in cash would have seen
it rise by just 0.6 per cent, while residential property did little better
with a gain of 1.2 per cent.
UK shares and commercial property both returned 14.5 per
cent, while the value of international shares increased by 10.6 per cent.
Suren Thiru, economist at Lloyds TSB, said: “Going
forward, the level of demand from emerging economies, particularly from China
and India, is likely to remain an important determinant of many assets prices
as well as the pace at which the global economic recovery continues.”
Asset Class Returns, Dec 2009-Dec 2010
(Press Association) -- Precious metals
'top investment'
Precious metals were the top performing investment for the second consecutive
year during 2010 with their value soaring by 42% as people sought a safe
haven from inflation, research indicates.
It is the fourth time in the past five years that precious
metals have topped the tables for the best asset class, as continuing
uncertainty over the prospects for the global economy caused investors to
flock to gold, silver and platinum, according to Lloyds TSB.
The value of precious metals has surged by 365% during the
past 10 years, nearly double the increase for the next best performing asset
during the same period - residential property, which made a gain of 198%.
The steep increase in precious metal prices seen during
2010 was driven by silver, with its value jumping by 80%, significantly
outstripping the 29% rise in the price of gold and the 20% increase for
platinum.
The group said the price of silver had been boosted by
pressure on the supply of the metal, as demand remained high from both
investors and industries which use it.
Commodities were the second best performing asset class
during 2010, offering returns of 30%, while they were the third best during
the past decade, with a 176% increase in value.
They were also the best performing asset during the first
two months of 2011, driven by a 38% jump in the price of cotton since the
start of the year, due to a combination of rising demand from Asia and
falling supply as some of the major cotton producing countries were hit by
flooding.
All nine asset classes produced a positive return during
the past year, although people who held their money in cash would have seen
it rise by just 0.6%, while residential property did little better with a
gain of 1.2%.
UK shares and commercial property both returned 14.5%,
while the value of international shares increased by 10.6%.
Suren Thiru, economist at Lloyds TSB, said: "Going
forward, the level of demand from emerging economies, particularly from China
and India, is likely to remain an important determinant of many assets prices
as well as the pace at which the global economic recovery continues."
(Telegraph) -- 'There Is a Danger That
People Are Buying Gold Now When Prices Are Overheated'
Following a spectacular 10-year bull run, some say buying gold has become too
risky for private investors.
Patrick Connolly, of the financial adviser AWD Chase de
Vere, said: "There continue to be bullish statements and bold
predictions about gold and the assumption that the returns seen over the past
decade are now the norm. There were similar sentiments in 1999 about
technology stocks, and the belief that the only way was up."
As he pointed out, there is a real danger that this could
be a "gold bubble", and when prices do fall – which they will
at some point – the correction could be far sharper and last longer
than many people expect. He added: "It's easy to forget that gold prices
can go through prolonged downturns. During the Eighties and Nineties, the
price of gold fell by 70pc."
Although gold is a good inflation hedge over the long
term, this isn't always the case over shorter, more realistic time frames
over which the typical investor is more likely to hold the asset. If you
bought gold in the Eighties, for example, it hasn't proved to be the most
effective hedge against inflation since then. If it had kept pace with
prices, it would now be worth about $2,600 an ounce.
Martin Bamford, a chartered financial planner with
Informed Choice, said: "Investors are understandably concerned about
inflation at present. But there is a real risk that those now buying gold are
doing so at the top of the market and will end up making losses when prices
fall."
He added that investors should remember that gold does not
produce any income, in terms of either interest or dividends, so returns are
based solely on capital growth. He said: "It can also be difficult to
access as an asset class: many people end up buying funds that are largely
invested in mining stocks, which don't always reflect gold prices
accurately."
Other options include buying gold bullion or coins, or
investing in an exchange-traded fund (ETF), which basically follows the price
of gold.
Mr Bamford said: "I'd be wary about getting into gold
at present. The price may still rise further, but the gains are unlikely to
be so significant. When prices fall, it is those who got in near the end who
will suffer the biggest losses."
He added that there were also investment costs to
consider, such as the cost of storing, trading and insuring bullion, or
dealing charges on ETFs. "A diversified investment portfolio, containing
shares, property and bonds, may be a better way to protect against
inflation," Mr Bamford said.
"And about a third of the stocks in the FTSE 100 are
commodity-related stocks, whose performance will be correlated to gold
prices. There is a danger that people are buying now when prices are
overheated and becoming overexposed to one asset class."
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(Coin News) -- US Mint Reviews Product
Pricing for Silver Coins and Sets
The United States Mint is reviewing the pricing of its products due to
soaring silver prices, according to a US Mint official. Sales of at least one
of its sets have been suspended until the review process is complete.
The Mint currently has a pricing policy in place for its
numismatic gold coins. Based on it and the prevailing cost of gold, the US
Mint may adjust collector gold coin prices weekly. It does not have a similar
pricing system in place for its numismatic silver products.
"Recently, the market price of silver has risen
substantially. As a result, the United States Mint is reviewing the prices of
current products containing silver to make sure the market value of the
silver contained in them is not now higher than the cost of the products
themselves," US Mint spokesman Michael White said on Monday.
A recent CoinNews.net article noted how 31-year high
silver prices have resulted in exploding silver coin values. On Friday, coins
like the 1964 quarter had a melt value of $6.39. The 2010 America the
Beautiful Quarters Silver Proof Set was valued at $31.95, which was only $1
less than its US Mint pricing.
On Monday the precious metal surged as high as $36.75 an
ounce, bringing the 1964 quarter’s melt value to an astounding $6.98.
The set’s melt value went up to $33.23, which is above the original US
Mint pricing for the product. It is this set which the US Mint has suspended,
presumably to raise its price at some point. Customers who visit its product
page at http://www.usmint.gov/catalog
will now see a Mint message saying "the product is temporarily
unavailable."
As of this writing, all 2011-dated products are still
available. These products were already priced substantially higher than
2010-dated issues in response to silver which soared nearly 84 percent last
year. Obviously, their prices could go higher if the metal continues its
streak of gains.
(Zero Hedge) -- No Silver? No Problem:
US Mint Would Like To Know If You Will Accept Brass, Steel, Iron Or Tungsten
Coins Instead
United States Mint Seeks Public Comment on Factors to be Considered in Research
and Evaluation of Potential New Metallic Coinage Materials
WASHINGTON - The United States Mint today announced that
it is requesting public comment from all interested persons on factors to be
considered in conducting research for alternative metallic coinage materials
for the production of all circulating coins.
These factors include, but are not limited to, the effect
of new metallic coinage materials on the current suppliers of coinage
materials; the acceptability of new metallic coinage materials, including
physical, chemical, metallurgical and technical characteristics; metallic
material, fabrication, minting, and distribution costs; metallic material
availability and sources of raw metals; coinability; durability; sorting,
handling, packaging and vending machines; appearance; risks to the
environment and public safety; resistance to counterfeiting; commercial and
public acceptance; and any other factors considered to be appropriate and in
the public interest.
The United States Mint is not soliciting suggestions or
recommendations on specific metallic coinage materials, and any such
suggestions or recommendations will not be considered at this time. The
United States Mint seeks public comment only on the factors to be considered
in the research and evaluation of potential new metallic coinage materials.
The recently enacted Coin Modernization, Oversight, and
Continuity Act of 2010 (Public Law 111-302) gives the United States Mint
research and development authority to conduct studies for alternative
metallic coinage materials. Additionally, the new law requires the United
States Mint to consider certain factors in the conduct of research,
development, and solicitation of input or work in conjunction with Federal
and nonfederal entities, including factors that the public believes the
United States Mint should consider to be appropriate and in the public
interest.
(Bloomberg) -- Gartman Jumps Back Into
Gold; Selling Was ’A Mistake’
Newsletter writer, fund manager Dennis Gartman reinstating gold positions he
sold last week;
“Our little experiment on the sidelines did not
work.”
Long again of gold in euro, yen and dollar terms.
Weaker dollar more supportive of commodity prices
generally.
"We congratulate those who have the wisdom or the
temerity to have remained bullish of gold’’, sold when gold was
~$1,432, it’s at $1,442 today.
Says sold gold following his trading rules; would do so
again
Mark O’Byrne
Goldcore
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