Newsletter - July 2012

Dear Friend/ Member,

Welcome to our July Newsletter and Precious Metals Report.

Our Precious Metals Report comes to you from our USA based commodities expert, Edward Meir.

Edward Meir - AusMint's commodities expert

Edward has been in the commodities business for about 30 years in various capacities. Edward started his career in commodities with Drexel Burnham Lambert as a commodity futures research analyst and since then has provided research services to Trans-World Metals, MF Global and now with INTL FCStone. Mr Meir is based on New York and joined the Australia Mint Bullion & Coin team in May 2012.

Edward will be responsible for contributing news articles, personal views and updates, and the monthly Precious Metals Report.  

Please open the July Precious Metals Report by clicking this link or go to our website at www.ausmint.com  

Precious Metals performance in June

Gold looked weaker earlier in the month but a strong late month rally brought about a finish almost on par with the end of the previous month. The European markets would appear still to be on shaky ground. Gold is in awaiting.

The technical charts are interesting (refer to the Precious Metals Report), strong support exists between US$1,525 and US$1,550. Technically, Edward Meir has a view that gold could see US$1,700 in the July/August period.

Similarly, Silver was sold off during the first three weeks of the month only to rebound in the last week to finish at US$28. Silver fundamentals seem comfortable while total supply of silver could jump past the 1 billion ounce mark for the first time on record.

Technically, the view is that we could use the US$26-US$26.50 level as a long term entry point, while on the upside, there is good resistance at just under US$30.

Platinum, perceived as being an industrial metal, is being weighed down by the gloomy macro environment and slowing car sales, particularly out of Europe. Technically it looks like Platinum will continue to trade between US$1,425 and US$1,540.

Palladium sank all the way to US$560 an ounce over the course of June before rebounding to trade at around US$600 by the end of the month. Analysts at Moody's have suggested that palladium's industrial competitiveness versus platinum should increase over the months ahead given their respective price points. 

Storage as important as a buy/sell decision

No matter the size of your precious metals investment the question of storage and security should be carefully considered.

How much does it cost? Is your investment fully insured? Are your physical holdings under official audit review and control?

This is why we have chosen to partner with Westpac to offer secure and insured storage at Westpac's vault and safety deposit box facility at 341 George St, Sydney. Qualifying Members receive these services for free including a personalised Safety Deposit box and full online Bullion Account management.   

AusMint Member benefits

• Free access to Thomson Reuters Knowledge Direct for Wealth Management, including real-time Global Financial News, Market Analysis and Pricing.
• Comprehensive charts with historical trends and comparisons across multiple precious metals, currencies and other investment classes (eg. ASX).
• Define your own profile of News (Business or Commodity specific) and specific Charts that you wish to track. Login securely and view your personal Bullion Investment Dashboard at any time.
• Your Bullion Investment Account records all your transactions and is a register of every bar or coin you currently hold. Each bar or coin has a certificate and you are free to check your physical holding at any time.
• For qualifying Members; Free storage of your bullion in a personal Safety Deposit box in Westpac's Vault at 341 George Street, Sydney.

Contact us at anytime on 1300 987 995

Global Indicators

• Europe; take a bow, but remember the show is not over... Greek election on June 17th saw a relatively solid win for the pro-bailout parties. There was an initial burst of buying, but barely lasted a day before the selling returned.

   

• European finance ministers announced a greater than expected Euro100 billion loan for wobbly Spanish banks.

   

• The question is whether total funds available (some Euro500 billion) will be increased as it constitutes roughly 20% of the Euro2.4 trillion of debt that just Italy and Spain have between them. Further clarification is needed... Europe is not out of the woods yet.

   

• Many in the market await a clear direction or even a recognition that the US economy is showing continued economic weakness. June figures showed manufacturing growth rising at its slowest pace in 11 months and there were reports of sluggish employment growth and slumping confidence readings.

Australian Indicators

• By early July the Australian dollar had risen to a two month high to just under 103 US cents. With the RBA holding the cash rate at 3.5%, indicating their optimism about conditions in the Australian economy. Retail sales data is due out in the days ahead that may or may not support this view.

   

• Share market stocks in Australia has performed reasonably positively from early June to early July with the S&P/ASX 200 rallying 49 points or 1.18% during this time.

While the macro backdrop favours gold, we need to see investment buying picking up. Watch this space!