 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
October saw rebounding prices for all four of the precious metals but as we wait for November to draw to a close precious metals have once again dipped. During October, gold, silver, platinum, and palladium began to recover from September’s drop in prices. Delays in solving the European Union debt crisis spurred precious metals to rise, including gold which rose above $1,700/ ounce and then to a one month high when EU leaders finally announced a debt deal. In November all the precious metals rose to monthly highs on November 8, but have since dipped lower with gold and silver hitting monthly lows so far on November 25, Black Friday.
The October gold/silver ratio – the quantity of silver (in Troy ounces) that one ounce of gold will buy – dipped during the month, meaning silver is becoming more valuable relative to gold. It finished October at 49.80, down from September’s ratio of 54.11 which was a double digit increase over August’s gold/silver ratio of 43.85. Two years ago the gold/silver ratio hovered around 65 with gold selling around $1,045 per ounce and silver selling around $16 per ounce.
| October Spot Price Summary (U.S. Dollars) | ||||
| Silver | Gold | Palladium | Platinum | |
 |
||||
| High | $35.78 | $1753.76 | $682.50 | $1665.00 |
|
||||
| Low | $28.56 | $1597.40 | $538.75 | $1438.00 |
|
||||
| Open | $30.03 | $1625.60 | $615.00 | $1527.00 |
|
||||
| Close | $34.51 | $1718.88 | $647.75 | $1601.50 |
|
||||
| Nov (through Nov. 25) Spot Price Summary (U.S. Dollars) |
||||
| Silver | Gold | Palladium | Platinum | |
|
||||
| High | $35.25 | $1792.82 | $676.00 | $1672.00 |
|
||||
| Low | $31.33 | $1682.30 | $570.50 | $1534.50 |
|
||||
| Open | $33.37 | $1717.20 | $636.00 | $1593.50 |
|
||||
| Close | $31.33 | $1682.30 | $570.50 | $1534.50 |
|
||||
CONTENTS
 |
Market Summary — October 2011 |
|
Ross Hansen: Past Bingo? |
|
Precious Metals in your IRA |
|
Hidden Secrets: True Stories of Buried Treasure |
|
Precious Metals Worldwide |
ABOUT NORTHWEST TERRITORIAL MINT PRECIOUS METALS MONTHLY
Combining market summary information and insightful analysis, this publication offers an insider’s perspective on the numbers, trends, and moves that drive the precious metals market, allowing you to stay on top of the most important investment news each month without investing hours of your precious time.
DID SOMEONE SEND YOU THIS NEWSLETTER?
Sign up here to receive your own copy every month, and get a free Investor Guide as well.
LINKS
|
Northwest Territorial Mint Bullion Web Site |
|
Northwest Territorial Mint Mobile Bullion Web Site |
|
Request Free Investor Guide |
| |
Buying From Northwest Territorial Mint |
|
Selling To Northwest Territorial Mint |
|
MyBullionTracker |
|
The Gold Report |
|
Independent Commentary |
|
Bullion FAQ |
|
Bullion Reading List |
|
Online Store (For purchase of up to 3 ounces of gold, 5 ounces of palladium or 1 ounce of platinum, or up to 200 ounces of silver.) |
|
Order Status |
FEEDBACK
Think we’re right? Think we’re wrong? Know something that we don’t? As always, your feedback is welcome. Send us an e-mail with your questions about investing in precious metals or request your very own Investor Guide, a free resource packet chock-full of useful information.
Missed last month’s newsletter?
Request the October Bullion Newsletter. Or, find past issues archived at our Precious Metals Monthly Web Site.
CHARTS
The following charts display the daily low and high spot price of each metal for the month of October, 2011. Source: Northwest Territorial Mint spot prices as posted at bullion.nwtmint.com.
The following charts display the daily spot price range of each metal for the six months ending October 2011.
“A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy ensuing.” - Alexander Fraser Tytler (Renowned Scottish historian, lawyer, writer, and professor) 1787
This month our nation's official debt passed 15 trillion dollars, and worse, an additional estimated 100 trillion+ dollars in unfunded liabilities. This fiscal year our government will spend more than 3.6 trillion dollars, with a projected deficit of 1.3 trillion dollars. According to the Congressional Budget Office (a nonpartisan organization) these deficits will continue, with a projected national debt in 2021 of $27.6 trillion.
Congress, under pressure to address our nation’s continuing deficit spending, formed a “super committee” made up of 12 senators, six from each political party, to make recommendations for cuts totaling at least 1.2 trillion dollars over 10 years — less than 5 percent of the projected deficit. For a variety of reasons the super committee was unable to even take the first step in addressing our nation’s debt. But why should they? Congress has a credit card, and its balance is being eagerly paid by investors, both foreign and domestic, and a Federal Reserve which is more than happy to keep the printing presses running. Is there a time in the near future when our creditors will quit lending, or worse, ask for their money back? If this happens, do we just keep printing money until our money looks like Zimbabwe’s money? (See photo below.)
Or do we adopt the philosophy of the satirist Dennis Miller, who said, "Fourteen trillion dollars? Do we really owe somebody this money? And if we do, guess what: Don't pay 'em!"
I’ve often commented that there are two fundamental reasons to buy precious metals. The first is its value as an industrial metal. The second is its historic value as the world’s reserve currency. Currently, the first reason is questionable, but the second reason gets better every time Congress votes.
Bingo is aviation slang for the point of no return, meaning to have just enough fuel on board to return to base safely. We as a nation have to ask ourselves whether we have enough fiscal and moral fortitude left in the tank to return to a sound fiscal base safely. Or are we past bingo?
Ross B. Hansen
CEO, Northwest Territorial Mint
...
Ross Hansen is the founder and CEO of Northwest Territorial Mint and has more than 30 years of experience as a precious metals trader and broker.
- top -
by Northwest Territorial Mint Staff
As a precious metals investor you buy gold and silver to protect your wealth. Thanks to the Tax Payer Relief Act in 1997 investors can include physical gold, silver, platinum, and palladium in their IRAs. Prior to 1997 only gold and silver American Eagle coins were allowed into a precious metals IRA. The changes allowed for greater variety of bullion that meets the minimum purity requirements to be included in your retirement account. This is a great way to diversify with many more options.
Adding gold, silver, and platinum coins, as well as gold, silver, platinum, and palladium bullion to your IRA can help even out your portfolio’s value as precious metals don’t typically follow stock prices. As an example, gold often rises as stock prices drop.
Northwest Territorial Mint has a wide variety of government-backed IRA approved precious metals products. Among them: American Gold Eagle coins, Canadian Gold Maple Leaf coins, American Silver Eagle coins, American Platinum Eagle coins and gold and silver bars (bullion).
Eligible products include legal tender gold coins with at least a .995-fineness, 99.9%-pure silver bars and coins, .9995-fine platinum bullion, and .9995-fine palladium bullion.
You can add precious metals to all types of IRAs, including traditional, Roth, simplified employee pension (SEP), and simplified incentive match plans for employees (SIMPLE). Before adding precious metals to your IRA account, make sure your plan allows it. Some do not and in that case you’ll need to start a new gold-silver IRA and designate a custodian. Northwest Territorial Mint deals with the distinguished precious metals IRA specialist GoldStar Trust Company.
Name Northwest Territorial Mint as the bullion dealer and then contact us directly to lock in the price for the bullion product you want. We will ship the physical metal to GoldStar Trust Co. for receipt into its depository. GoldStar holds the exact precious metals you bought at an internationally recognized precious metals depository. The company pays us with funds from your account and then credits your account with your newly purchased precious metal.
According to IRS rules, the precious metals you invest in must be stored at an approved depository, which is separate from your IRA’s custodian. You can’t just buy coins or bullion and then put them away in your safe deposit box or bury them in the backyard. You’ll pay a storage fee for keeping your coins and bullion in this depository.
During uncertain times, precious metals bullion can protect your portfolio and your future by reducing the volatility of your holdings.
For more information on including precious metals in your IRA and a full list of IRA-approved products go to the informational page on our website, contact Northwest Territorial Mint toll-free at 800-344-6468 or e-mail us at bullioninfo@nwtmint.com.
...
- top -
Hidden Secrets: True Stories of Buried Treasure
by Northwest Territorial Mint Staff
Who doesn’t dream of finding buried treasure in their backyard? For most people that dream will stay a dream. For a lucky few, it’s a dream come true.
Four years ago an Austrian man was digging in his backyard when he literally struck buried treasure. He unearthed a treasure trove of jewelry and ornaments hidden under ground for 650 years.
Among the loot were gold-plated silver plates, ornate jewelry, and other riches. Austrian authorities called the find one of the most significant discoveries of medieval treasure in Austria. How much all the treasure is worth is being kept a secret, but the man who found it gets to keep it and has generously loaned it to an Austrian museum for display.
A young brother-sister team in Indiana didn’t just stumble upon the secret of buried treasure. They put their heads together to crack a mystery that stumped police detectives and private investigators for more than 12 years when they discovered the secret behind some missing rare coins and jewelry. Eccentric real estate developer Edgar Barndagle hid the treasures in 1994 after a falling out with his real estate development partners.
The creative children followed clues from news articles and documents signed by the late Barndagle who they discovered used codes and even invisible ink in his financial records. Heating a deed form on a stove revealed invisible writing, which authorities believe was written in lemon juice, to unveil the location of two small hidden keys and a paper that cracked the code to Barndagle’s mysterious symbols. Using the key code the children decoded a secret message, noting the location of the hidden jewels and coins under a newly planted flower bed.
Beneath the flower bed was a strong box and inside that were hundreds of gold and silver coins, jewelry, rare foreign coins and banknotes along with two flasks of gold flakes.
Authorities estimate the find to be worth $2 million. For their hard work and creativity, the children get to split the treasure.
Both those stories are unusual. Most treasures people unearth are with a metal detector and garden shovel and barely come close to funding your retirement. But, these stories prove the treasures are there. People have been burying their investments, whether it is jewelry or precious metals, for generations and often those investments go undiscovered when someone dies or becomes incapacitated and no one else knows where they are. So, grab your metal detector and shovel. You just might find that piece of treasure that could make you rich beyond your wildest dreams. It doesn’t hurt to try....
- top -
Precious Metals Worldwide
News & Trends from Around the Globe
Gold Coin Sales Fall in US
The sharp drop in the price of gold in September coincided with a drop in sales of investment gold coins by the US Mint. The US Mint sold 115,500 ounces of the bullion version of its American Eagle gold coins in September, down from 167,500 ounces in August. Sales of American Buffalo bullion gold coins also dropped, from 28,000 ounces in August to 13,000 ounces in September. In India, the opposite was true where dealers reported the drop in the gold price was welcome news ahead of several major festivals where gold is traditionally bought and given as gifts.
Pan American Silver Profit Up in 2011
Pan American Silver Corp. is reporting a third-quarter surge in profit, thanks to rising metal prices. A Bloomberg report says the Vancouver, BC based company reported a profit of $52.5 million, or 49 cents a share. That’s up from $972,000, or less than a penny a share, last year. Pan American Silver Corp. is the second-largest primary silver mining company in the world.
Jewelry Makers, Celebrities Tout Palladium
The precious metal of choice for some jewelry makers these days is palladium. Bloomberg reports the precious metal is being touted as an attractive, yet more affordable alternative to gold and platinum, the traditional metals used in jewelry. Palladium is in the same family as platinum, yet sells for about 40% of the price. It’s appealing as a jewelry alternative because it doesn’t tarnish. Palladium Alliance International is backing an ad for the metal that features former “Baywatch” star Pamela Anderson and fashion designer Kelly Osbourne.
...
- top -
Contents © 2011 Northwest Territorial Mint.
Information provided here should not be considered as advice or as an offer or enticement to buy, sell or trade. The contents of this publication, including any opinions and analysis, are strictly intended for educational use. Opinions expressed in bylined articles are those of the individual author and do not necessarily reflect the views of Northwest Territorial Mint. Furthermore, information obtained from all quoted sources is believed to be reliable and is offered in good faith. Northwest Territorial Mint does not accept responsibility for any trading losses incurred from reliance upon this information. Readers are encouraged to consult with a financial advisor before making major investment decisions.
This is not an unsolicited e-mail. You were sent this newsletter because you have either purchased products from Northwest Territorial Mint or have requested receipt of promotional information. If you prefer not to receive commercial e-mail from Northwest Territorial Mint, or if you have changed your e-mail address, please reply to this e-mail and let us know. To help ensure that our messages go straight to your inbox and display correctly, add Announcements@nwtmint.com to your Address Book or Safe List.