Newsletter - June 2012 - Old

As a friend or Member of Australia Mint Bullion & Coin, our objective is to bring to you information, news and views that will be of interest and of value to you in your assessment of precious metals as an investment strategy.

Our monthly Newsletter will incorporate a Precious Metals Report that review the global economic trends and views of Edward Meir our senior Analyst and Reporter. You will also find other articles or important news.

You too can contribute by logging onto the AusMint website and adding comments in the Blogs section.  

Welcome to Edward Meir

We are pleased to welcome Edward to the AusMint team.
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 view the June Precious Metals Report attached to this newsletter or go to our website at www.ausmint.com  

Precious Metals performance in May

Gold had an interesting couple of weeks, largely lower over the course of May, although last week of the month’s $60 upward spike (the biggest one-day move in three years) did manage to reverse some of the decline.
Technically, gold held critical support between US$1,525 and US$1,530. With sales of physical gold coins picking up noticably in May, buyers warmed up to the lower prices on offer.

Silver fell sharply over the course of May, but it has shown signs of stabilizing over the last few days of May.
Technically, silver enjoys good support around US$27 while on the upside, resistance at US$30.50 will likely be tested after the next round of buying comes through.  

Platinum lost roughly US$200/ounce over the course of May, but similar to gold and silver, the complex has snapped back, although the move higher is not as pronounced as what we saw in the other two metals.

Palladium lost almost $100/ounce in May, unable to withstand the selling that engulfed the rest of the markets. Despite this, the fundamentals look respectable. 

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 Westpacs vault and safety deposit box facility at 341 George St, Sydney.
Qualifying Member receive these services for free including a personalised Safety Deposit box and full online Bullion Account management.   

Global Indicators  

• First there was Greece, Ireland and Portugal, now Europe's finance ministers have agreed to bailout Spain. Signs of stress are mounting in the French and Italian debt markest.
• Equity markets were sent reeling, with about $4 trillion of value wiped off global valuations over the course of May.
• The Thomson Reuters- Jefferies CRB index tumbled nearly 11% this past month, the second-largest monthly decline since 2008 and one that left wide-spread carnage in its wake.

• Many had expected that U.S. Federal Reserve Chairman Ben Bernanke would signal further monetary easing, especially after last Friday's U.S. employment data showed a surprisingly weak job market. But Bernanke refrained from indicating any short-term aid, though he said the central bank was ready to shield the economy if financial troubles mounted...watch this space.