The metals get punished

All across the board, precious metals took a beating today.  Here are the final numbers:

• Gold: $777
• Silver: $11.26
• Platinum: $1216
• Palladium: $230

Quite the opposite of when I was expecting.  At this point one has to ask – how low can they go?  It isn’t too far-fetched to say we’ll see gold dip into the low 700 range this week.  Silver could dip well into the $10′s.  Platinum has mid $1000′s written all over it – and Pallladium could be a sub $200 metal very soon.

The last few weeks have been brutal for holders of precious metals – worse than I’ve seen since becoming an investor.  If your hands are strong, hold on – but hold on tight.  The ride will be bumpy.

A bloodbath in the metals market

Just a quick mid-day update.  Gold and Silver are in a freefall yet again.  As I write this, silver is sitting at $11.74, down 32 cents.  Gold is at $780.10 – down $21.40.  Wow.  The US Government takes over Fannie Mae and Freddie mac, so precious metals take a nosedive.  How’s that for economic theory?

Who knows how the day will end up, but it’s an absolute bloodbath right now.  Platinum is down $75 bucks so far – sitting at $1248.  Palladium cruised downward through $250, and sits at $241.  Not so long ago Platinum’s cousin was a $450 metal all day long.

I’ll keep an eye on the charts throughout the day, and offer up my closing thoughts.  If you hold paper metals, I feel for you.  Unfortunately, I own just a bit.  The rest is in physical metal – and I don’t feel quite so bad about that.

Platinum Shines Today

Gold sank below $800 to close at $796 for the day.  Silver dropped a couple cents, while Palladium stayed flat.  Of the "big four", only Platinum managed a gain – it closed at $1387.  It’s trying to get back over that $1400 hump, but struggling to do so.

I’m going to call a different story tomorrow.  I’ll go out on a limb and say we’ll see gold top $800 by the close, Silver top $13, and Platinum top $1400.  Palladium will probably stay about flat, but may scare $300.

Often Fridays aren’t good days in the metal markets, for some reason.  We’ll see what tomorrow brings.

Silver American Eagle

The Silver American Eagle, or Silver Eagle for short, is the official silver bullion coin of the United States Government.  By law, the US Mint must mint and distribute Silver Eagles every year, and they must be made from US mined silver.  The American public has been enjoying these beautiful coins since 1986 – the first year they were produced.  Since these are bullion coins, they aren’t intended for numismatic value.  Rather, their value lies in the silver content.  With the small 1 ounce size, Silver Eagles are a great way to invest in silver.

What is a Silver Eagle?

An American Silver Eagle is a silver bullion coin.  It contains one troy ounce of pure .999 fine silver.  The silver content and weight is guaranteed by the United States Government – no other silver coin can make that claim.  When you buy a Silver Eagle, there’s no need to worry about the authenticity – you’re buying 1 troy oz of pure silver, period.  Counterfeits are unlikely to be about – remember, this is a US coin.  Any counterfeiters would have to face the wrath of the US Secret Service.

How can I buy Silver Eagles?

You can purchase Silver Eagles individually, or by the tube.  Twenty eagles come in a single tube – so that’s twenty ounces of silver.  When figuring the price for Silver Eagles, take the spot price of silver and add a dealer premium.  These days, premiums on Silver Eagles are in the $2.50 – $3 per ounce range.  Given the beauty of the coins, and guaranteed silver purity and content, that’s not horribly unreasonable.  There are less expensive options out there, if you’re looking to get the most silver for your buck.

Most coin dealers will have at least a small stock of Silver Eagles.  If you prefer to purchase online, there are dozens of places to buy.  Some of my favorties are APMEX, Bullion Direct, and Kitco.  If quantity is your thing, I understand the Tulving has some great volume pricing.  His minimum order is 100 ounces though, so don’t think you can get the volume discount on a couple Eagles.

Silver Eagles are Legal Tender

Each and every Silver Eagle is legal tender – meaning you can use it to purchase goods and services, just like you would use that green stuff in your wallet.  The fact value is $1, meaning it’s just as good as a $1 bill or Presidential dollar coin.  However, you wouldn’t actually use a Silver Eagle to purchase a soda.  Today’s going rate for an Eagle is somewhere around the $15.50-$16.00 range.  So even though you wouldn’t use it like cash, it’s great to know you can.  At the very worst, this coin will always be worth at least one dollar.

Gold Rises slightly, other metals drop

Gold finished up the day at $802, slightly up from yesterday.  Silver dropped under $13, Platinum finished at $1335, and Palladium at $281.  It hasn’t been a good couple weeks for the metals in general, but the white metals in particular.

Though we may see some more downside in the near future, Silver is a screaming buy.  If you can purchase silver at anywhere near spot prices, now is the time to buy.  The big question is "if".  Remember, silver was going for $20+ just a few short months ago.  Has anything really changed since then?

Precious Metals in a funk

Gold, Silver, Platinum, and Palladium have had a tough time as of late.  Gold is doing it’s best to hold above $800, Silver struggling to keep above $13.  Platinum is hovering right around the $1400 range, and Palladium can’t seem to get back above $300.  Each of the “big four” precious metals has seen a hefy drop from highs made earlier in the year.  So, what’s a precious metals investor to do?

Do you still have the same number of ounces?

Go to your safe, safety deposit box, or hole in the backyard.  Count the number of ounces in your posession.  Do you have any less ounces than you did at a higher spot price?  Of course you don’t.  That’s part of the beauty of precious metals.  Sure, the dollar value can be confounding at times.  But your holdings haven’t changed a bit.  If you had 100 ounces of silver at $19 per ounce, you still have the same 100 ounces in your posession – even though silver is at $13 per ounce.  Rest easy knowing your stack is safe and sound.  You are in this for the long haul, aren’t you?

Spot Price Ticker Added

Today I made an important update to Gold and Silver Spot dot com – a spot price ticker. Up in the header, you’ll see current bid and ask prices for Gold and Silver, as well as Platinum and Palladium. These are the four most important precious metals, and the four that this site talks about. Now you don’t need to go to another site to get the most current, up-to-date spot prices on your favorite precious metals.