In other precious metals news this week, current geopolitical tensions are seen as having an upside for Silver, as supply concerns and heightened demand are starting to crop up. Silver is a by-product of lead and zinc mining efforts, which are dwindling. With investors’ support in Silver, the metal gained nearly 20 percent in January. Kingsgate Consolidated Chief Executive Gavin Thomas said, “Silver is a fantastic opportunity. … I see there’s a lot of upward price (for the metal) because of the lack of supply. … India and China are slowly turning to Silver as a means of hoarding wealth, as Gold is becoming more difficult to obtain (due to higher prices).” India is well known to be the world’s largest consumer of Gold, but it is also the third-largest consumer of Silver behind the United States and Japan. Last year, India imported about 4,800 tons of Silver, and this year forecasts are for more than 5,000 tons of imported Silver. The price of Platinum rallied this week, due to a labor dispute at one of the world’s largest Platinum mines, Impala Platinum’s Rustenberg Facility in South Africa. The disagreement at the mine has led to a loss of 80,000 ounces in output.

Although eurozone finance ministers finally confirmed a second bailout package for Greece this week, pessimism still surrounds the situation.  Hedge fund manager Dennis Gartman made his views on the issue known, saying, “All the authorities have been able to do is delay default by a few weeks, perhaps a few months at best. Greece will default, but perhaps not under the present government in power. A new government is going to come to power following elections that shall take place sometime this spring, and if anyone anywhere believes that the next Greek government shall do anything other than abrogate all the agreements made with the ‘troika,’ then we have a bridge we’d like to sell them at a very high price.”

Credit default swaps became a concern this week after the bailout agreement for Greece. Investors look at credit default swaps as their insurance policy for a bond they have bought from an unstable country, such as Greece. Europe’s policymakers are hoping for a voluntary debt swap that would allow an investor to swap his current bond for a lower-interest bond. If this method is chosen, it would prevent credit default swaps that could damage Europe’s financial system. For Greece to receive the utmost benefit in debt relief, as many eligible bonds as possible must become part of the restructuring scheme. The Greek Parliament is considering inserting a collective action clause into bonds issued under Greek law, which will force investors to accept the lower-interest bond swap. This would affect about 90 percent of the bonds. If invoked, the collective action clause would most certainly set off default swaps, experts said.

Weak economic growth in Europe has investors worried about both the debt loads of countries in the eurozone and the exposure banks might have to that debt. A report issued this week by the European Commission indicated that it expects the eurozone economy will experience a recession in 2012, its second in three years. According to the report, the larger European Union (EU) will stagnate because the entire region is still encumbered by a vicious cycle of debt. Economists say that the fragile economic recovery the EU has experienced the past two years cannot withstand the high public debt, lack of investor confidence, and high unemployment. European Central Bank President Mario Draghi agrees that uncertainty remains high regarding the eurozone.

Here in the U.S., the number of new claims for unemployment benefits in the was unchanged from last week. Despite the  encouraging numbers, economists are cautioning that it could just be an unseasonably warm winter that is pushing gains in the labor market. According to one economist, even thought the warmer weather has led to more construction jobs than usual, this is the time of year when there are construction layoffs. Other economists have predicted that state governments and the federal government are likely to continue cutting jobs. The consumer sentiment index rose slightly in February to 75.3 from last month’s 75, boosted by an increase in job opportunities and a brighter outlook for the economy. The price of oil in the U.S. has been in the news this week. Two issues are contributing to higher prices: concerns on whether Iran will move forward with its nuclear program, and better growth expectations in the U.S.

The standoff with Iran has been particularly troubling to world oil markets. Just before the start of the work week, oil futures surged 2% on reports that Iran had already stopped shipping crude oil to British and French companies response to new economic sanctions. Iran said that it would ship the oil to new customers instead, and also repeated its threat to close the Strait of Hormuz, which would prevent oil tankers from traveling to and from the Persian Gulf. Also in Iran, a second round of talks took place between Iranian officials and representatives from the International Atomic Energy Agency (IAEA) over Iran’s nuclear program. Many are concerned that Iranian nuclear efforts, including the enrichment of uranium, is part of an effort to develop nuclear weapons. Israel said this week that it is considering whether to attack the nuclear infrastructure in Tehran.  Israel has repeatedly stated that it feels its existence would be threatened if Iran developed nuclear weapons capability.

Product of the Week: Saint-Gaudens Gold Double Eagles

Double Eagles were first issued in 1850 in response to the increased Gold supply from the California Gold Rush of 1849. The new $20 coin saw many designs in the following years, but the most famous of these was rendered in 1907 by acclaimed sculptor Augustus Saint-Gaudens. At the request of President Theodore Roosevelt, Saint-Gaudens was charged with the task of beautifying American coinage in 1904. Due to the sculptor’s declining health and the high relief of his design, the work was delayed several times. In the end, the final design was stunning and patriotic.

The obverse of the Double Eagle is graced by Saint-Gaudens’ majestic depiction of Lady Liberty striding forward before the dawn of a new day. She holds aloft a torch symbolizing enlightenment and carries an olive branch of peace. The U.S. Capitol is visible in the background beneath the sun’s rays, and 46 stars, representing the Union’s states in 1907, border the coin’s rim. Two stars were added in 1912 when New Mexico and Arizona were granted statehood.

The reverse shows a side view of an eagle in flight set in front of a rising sun. Though the original design did not incorporate the motto “In God We Trust,” it was added in 1908 at the demand of Congress. The Saint-Gaudens Double Eagle was produced until 1933, when the U.S. was taken off the Gold standard.

One of the most sought-after American coins, the Saint-Gaudens Double Eagle is a must-have for any investor or collector of Pre-1933 Gold. APMEX offers a wide selection of these beautiful Gold coins to fit your collection or portfolio, including random-year Double Eagles in cleaned, Extra Fine, and Almost Uncirculated conditions. Also available are 1907 (first year of issue) coins, and high-graded specimens from top grading services including PCGS and NGC. AMPEX makes it easy to buy Gold Pre-1933 Double Eagles by offering competitive Gold prices on all Gold products.