Wednesday, 5 December 2012

U.S. Eagle Gold Coins Strongest Since 1999 – HNWs Taking Possession

-- Posted Monday, 3 December 2012 | Share this article | Source: GoldSeek.com

Today’s AM fix was USD 1,718.00, EUR 1,317.59, and GBP 1,069.67 per ounce.
Friday’s AM fix was USD 1,728.25, EUR 1,329.53, and GBP 1,077.87 per ounce.

Cross Currency Table- (Bloomberg)


Gold fell $12.40 or 0.72% in New York on Friday and closed at $1,713.20/oz. Silver slid to a low of $33.15 and finished with a loss of 2.43%. Gold was down 1.94% for the week and silver was also off 1.97%.

Gold is marginally higher today, after finishing its 2nd monthly decline in a row, despite safe haven demand due to US ‘fiscal cliff’ and currency debasement concerns. 

Gold ETF’s ramped up their third week of record high’s highlighting the fact that interest in the yellow metal as diversification remains robust. Yesterday, holdings in exchange-traded products backed by gold climbed to a record for the 10th straight session, reaching 2,619.4 metric tons, the latest data compiled by Bloomberg show.

Late Friday from Frankfurt, Moody’s downgraded the euro zone’s bailout funds from the top rating of Aaa to Aa1 on long-term debt. The rating cut includes the European Stability Mechanism (ESM), the currency zone’s brand new permanent rescue fund, and the temporary European Financial Stability Facility (EFSF) were given continued negative rating outlooks by Moody’s.

The Luxembourg-based funds issued a statement noting that Moody’s decision “follows the recent change of France’s long term rating from Aaa to Aa1.”


The continuing financial mess that is the Eurozone will support gold and gold prices in euros above €1,300/oz.
China’s PMI increased to a seven month high in November offering tentative signs that their economy is recovering.
U.S. economic highlights on Monday are Construction Spending and the ISM Index. Wednesday follows with ADP Employment, Productivity, Factory Orders, and ISM Services. The Initial Jobless Claims are published on Thursday. Friday’s highlights are the November’s jobs data, Michigan Sentiment, and Consumer Credit.


GOLDS Commodity Daily, 2 Years – (Bloomberg)

November sales of U.S. American Eagle gold coins are on track to be the best in 14 years as uncertainty surrounding the U.S. fiscal cliff and the election of President Obama led to safe haven buying.

Buyers timing the market also increased coin sales by buying during sharp price movements that occurred in the beginning and end of November, coin dealers noted.

Bullion dealers in the U.S. report an influx of high net worth individuals that are buying gold coins in volume and taking physical possession of their bullion.
Month to date 131,000 ounces of American Eagles sold, that tripled last year's November sales and is the strongest November since 1998, data from the U.S. Mint's website shows.

In October, the U.S. Mint sold 59,000 vs 50,000 ounces the previous year, while November marked its 2nd successive monthly rise.

Coin banks have come in to buy the stock as the mint usually ends 2012 coin production in early December so it can begin minting the 2013 coins.


SILV Daily 2 Years, (Bloomberg)


American Eagle silver coin sales more than doubled in November going from 1.384 million to 3.135 million ounces. Silver coin sales were just shy of October's figure of 3.153 million ounces.

Coin sales have not only been boosted by dealers and collectors but by the uncertainty of the U.S. presidential election and the US fiscal cliff as investors have turned to them as a safe haven to protect their wealth.

American Eagle gold coin sales are very seasonal with a bulk of investment seen at the start of the year for the newly minted coins. Sales usually fall off in the summer and then increase in September in sync with the Indian wedding season and also following the lunar New Year, between January and February.

NEWSWIRE

(Bloomberg) -- U.S. Mint Silver-Coin Sales Rose to 3.16 Million Ounces in Nov

U.S. Mint website shows estimated Nov. data.
Oct. sales were 3.15 million ounces.


(Bloomberg) -- LBMA Says Silver Trading Fell 21% to a Two-Year Low Last Month

Avg. daily trading was 98.1m oz last month, LBMA says in e-mailed statement.
Gold trading fell 12% to 19.9m oz in Oct.

“This reflects poor physical demand, particularly from India,” LBMA says. Banks also becoming more risk averse, it says

(Bloomberg) -- Silver Traders Increase Bets on Price Rise, CFTC Data Shows

Hedge-fund managers and other large speculators increased their net-long position in New York silver futures in the week ended Nov. 27, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 38,733 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 772 contracts, or 2 percent, from a week earlier. 

Silver futures fell this week, dropping 2.7 percent to $33.28 a troy ounce at today's close.
Miners, producers, jewelers and other commercial users were net-short 56,792 contracts, an increase of 1,606 contracts, or 3 percent, from the previous week.


(Bloomberg) -- Gold Traders Increase Bets on Price Rise, CFTC Data Shows

Hedge-fund managers and other large speculators increased their net-long position in New York gold futures in the week ended Nov. 27, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 193,742 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 12,927 contracts, or 7 percent, from a week earlier. 

Gold futures fell this week, dropping 2.3 percent to $1,712.70 a troy ounce at today's close. 

Miners, producers, jewelers and other commercial users were net-short 252,047 contracts, an increase of 15,983 contracts, or 7 percent, from the previous week.


(Bloomberg) -- China to Start Gold, Bond ETFs ‘Very Soon’: Securities

China will start gold, bond exchange- traded funds “very soon,” Shanghai Securities News cites Wang Lin, head of the fund supervision department at the China Securities Regulatory Commission.
China aims to continue speeding up QFII and RQFII approvals.

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