Precious Metals and my daily observations

I'm back!

2012-02-10T08:34:00.001-05:00

Well, I couldn’t stay away too long. Here comes my first entry at my new company. This will only be a weekly event and I hope that this commentary will add some value to my readers.

What is going on in the news of late. Well the biggest has been the tweaking of the unemployment numbers to show improvement by our Federal government. But if you go deeper into the numbers you would find that what has happened is the number of persons counted as eligible to work has been lowered which in turn lowers the unemployment rate. So are things getting better or are they status quo? In my book, the US continues to move forward but a victory over the current unemployment crisis is far from happening.

The Euro Zone is shaking apart while no one wants to decide what to do. The Greeks want nothing but to stay in Euro but the truth of the matter is their debt is large and grave that it is too burdensome for the group on a whole. It seems to be that when push comes to shove, after over a year of back and forth negotiations, the truth is they have no way at this moment to pay back what they owe. Unless the interest is forgiven the burden will continue to grow and drive Greece into chaos. It is starting to become more and more likely that European Union will need to make some very tough decisions and the one that makes most sense is that they release Greece from the Union.

What does all this mean? Even while the BRIC nations continue to grow and while the western world is suffering this indicates that smart money will bank on precious metals for the foreseeable future. Gold has definitely the advantage in this market and then Platinum is behind it. But whatever way you look at the metals, currencies will continue to devalue while the governments keep liquidity of capital high. I am putting my money on the stuff that dreams are made of.

The Top Ten Precious Metals Items at APMEX

Remember the day

In quiet thought

We often mind

The actions past

Crumble by time

Still moving forward

In working fast

We lose a part

Of what is meant to last

The smiles on faces

Kind rewards

Stress and pacing

An unjust bore

Look to the day

The true crescendo

Giving is love

Like sun through a window

Grasp the people

All those around

Slow things down

Let the message abound

The present

Is in each moment

Savor the look,

The touch

A raining torrent

If we don’t drink

Of this gift

That is life

It will all be gone

Like the dark

Takes the night

Have a great day!

G. Miguel Perez-Santalla

Vice President Purchasing

APMEX, Inc.

40 Wall Street, 50th Floor

New York, NY 10005

O. 405-595-2115

C. 405-482-4638

www.apmex.com

The End and the Beginning

2011-12-31T08:54:00.000-05:00

Dear Readers,

I have resigned my position at Heraeus Precious MetalsManagement as of Dec 29^th. I will be starting a new position with avery bright future in January. Unfortunately I have to advise you that I willno longer be able to write this blog on a daily basis. With my greater responsibilitiescomes more demand on my time.

I want to thank all of you who throughout the years haveemailed and kept me going when times were difficult. All the positive support I received from myreaders has certainly been an influence that has helped me arrive to thejuncture I am at today in both my career and personal life.

I hope to occasionally post some thoughts. I am thinkingthat I may possibly do so on a weekly basis in the future. At this time though Iwill be on an extended hiatus until I have my feet firmly planted at my newposition.

May love reign in your household and life through the New Yearand all the years to come.

Sincerely,

Miguel Perez-Santalla

Morning Indications- My Norm

2011-12-29T10:19:00.001-05:00

The Euro is still getting punished even though bond auctions today in Italy went well. This has surprisingly continued the downward spiral of the precious metals. But this is all on the back of very low volumes due to the holiday season. The bleeding seems to have stopped for now and some commodities such as copper are flat. It looks like we may be at the bottom but with no industrial consumers in the market place the bottom will remain weak. We expect an uptick on the return of vacationing consumers and investors next week. Jobless claims reports this morning were worse than expected and maybe that may be the backstop the precious metals needed as the few people in the market seem to be giddy over buying US Dollars.

12/29/2011 10:12

Last

%Change

Low

High

Au- Feb

1,534.50

(1.89)

1,523.90

1,562.80

Pt-April

1,370.00

(1.60)

1,347.60

1,390.00

Pd-Mar

632.70

(2.23)

626.50

641.30

Ag-Mar

26.755

(1.750)

26.145

27.160

EFPs

Au 1/1.50

Pt 2/6

Pd 0/4

Ag -4/2

London

Minor

PGMs

1,537.50

1,531.00

1400

1,364.00

1,354.00

110

636.00

630.00

1100

26.16

DJI

12,227.25

75.84

Last

%Change

Low

High

EUR

1.2915

(0.18)

1.2855

1.2945

JPY

77.75

(0.26)

77.63

77.98

GBP

1.5411

(0.29)

1.5357

1.5476

CHF

0.9427

0.03

0.9410

0.9470

Others

Last

%Change

Low

High

Crude- Jan

99.380

(0.320)

99.100

100.230

Copper-Dec

*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES

Date

Time

Statistic

For

Actual

Forecast

Expects

Prior

Revised

29-Dec

8:30 AM

Initial Claims

24-Dec

381K

370K

368K

366K

364K

29-Dec

8:30 AM

Continuing Claims

17-Dec

3601K

3625K

3600K

3567K

3546K

29-Dec

9:45 AM

Chicago PMI

Dec

62.5

60.1

62.6

29-Dec

10:00 AM

Pending Home Sales

Nov

1.00%

0.60%

10.40%

29-Dec

11:00 AM

Crude Inventories

24-Dec

-10.570M

I was on vacation last week and gained 5 pounds. It was the combination of celebrating my 50^th birthday and Christmas festivities that did me in. I actually let go of myself. But luckily I was keeping an eye on it the whole time. Once I got to that +5 number I put on the brakes. I have lost already 3.5 pounds and not with great difficulty. In the old days it would have taken me forever but now that I have accustomed myself to disciplining both my mind and body it has become an easier task. This does not mean I am not tempted but only that now I am able to have willful control over my desires. As I have said in the past if I cannot be in control of myself how can I ever expect to control anything in my life. So over the last few years through force of will over sloth and avarice by creating habits of exercise and proper diet I am now well armed for the fight. Sure I let myself go for a week gaining 5 pounds and I had a good time but in my mind I knew I am now disciplined. Vacation is a respite from discipline but discipline is now the norm of my life. Without it I would be setting myself up for constant failure as I learned from my past mistakes.

Have a great day!

G. Miguel Perez-Santalla

Vice President Marketing
Heraeus Precious Metals Management
540 Madison Avenue
New York, NY 10022

Phone:                   212-752-2705 ext 228
Trading Desk:        212-752-2180
Mobile:                   646-642-6512
email: miguel.perez-santalla@heraeus.com
blog: http://preciousmetalslife.blogspot.com
SKYPE ID: miguel.perez.santalla

Morning Indications- Liberal

2011-12-28T10:26:00.001-05:00

The precious metals are getting trashed this morning on the back of a stronger dollar. Word that the ECB has expanded their balance sheet, essentially their own form of quantitative easing, hit the market hard and the dollar rallied on that news. Essentially this news should be bullish for the precious complex but the dollar has taken over as the short term safe haven asset for the time being. We are still in full holiday swing between Christmas and New Years Eve and it is certain to be a different picture when market participants return next week. The Italian Bond auctions went well this morning but not good enough to stave off a weakening of the Euro. In Pt markets the news is that Zimbabwe is threatening to stop exports of Pt in an attempt to force industry to build refineries in the country. This is not something new as many countries have similar controls only allowing exports of refined material to keep labor in the country. I don’t fault them on that issue. For the group at large it looks like an after Christmas sale to me. Certainly Industrial consumers are considering buying metal as these prices but too many buyers on vacation this week to pull the trigger.

12/28/2011 10:25	Last	%Change	Low	High
Au- Feb	1,574.00	(1.36)	1,571.80	1,595.00
Pt-April	1,401.10	(2.55)	1,399.50	1,436.30
Pd-Mar	650.35	(2.43)	641.10	666.70
Ag-Mar	27.580	(4.030)	27.400	28.790
EFPs	Au 1.20/2	Pt 3.5/7.5	Pd 0/4	Ag -3/3
London	AM	PM	Minor	PGMs
Au	1,584.00	1,571.00	Rh	1400
Pt	1,415.00	1,408.00	Ru	110
Pd	658.00	655.00	Ir	1100
Ag	28.65	DJI	12,214.31	(77.04)
FX	Last	%Change	Low	High
EUR	1.2973	(0.74)	1.2966	1.3080
JPY	77.82	(0.06)	77.52	77.92
GBP	1.5493	(1.11)	1.5489	1.5692
CHF	0.9399	0.65	0.9311	0.9411
Others	Last	%Change	Low	High
Crude- Jan	100.730	(0.850)	100.740	101.890
Copper-Dec	3.395	(0.270)	3.400	3.395
*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES

The term liberal in the classical sense always meant an open mind to the discovery of truth. A mind that explores all and tests all arguments using logic in this search. But the term in the modern sense has taken a completely different meaning. In the USA it means almost the exact opposite. It now means the acceptance of any point of view without any logic because they believe that there is no absolute truth. But there are truths and the rejection and the lack of the search for the same is what is leading this country to slowly slip into a morass of ignorance propagated by those in power in media, government and education. Just like in Rome they give the masses what they want to please them like a drug. Violence, sex and drugs are pervasive in every level of society. Because those who fail to search for truth are left in a quagmire of lies and false hopes. We need our schools to train our students in the true liberal sense for a search and understanding of life that can raise every individual to higher calling and hence raise our society overall for the greater good. The one truth that when tested never fails is that only true love of each other as neighbors will bring peace. If only more people would try love over selfishness and hate then we can have peace on earth and there would be more people of good will. But all this will not happen unless the society at large is taught how to think using logic, not what to think by those in control of the mediums.

Have a great day!

G. Miguel Perez-Santalla

Vice President Marketing
Heraeus Precious Metals Management
540 Madison Avenue
New York, NY 10022

Morning Indications-The Climb

2011-12-27T10:16:00.001-05:00

I’m back! After being out of the office for over a week the story has changed very little. We have the continued concerns with the European economy where they continue to kick the can down the road. We have worries from Iran threatening at the Strait of Hormuz and in Iraq possible pending civil war after the withdrawal of US troops. However it is not all doom and gloom as last week’s U.S. economic statistics were much better than expected. But don’t get overly happy either, this morning Sears announced the closing of up to 120 retail store in the Sears and Kmart brand. Not a positive announcement. We also have next week to look forward to. The Mayan prediction of the end of the world in 2012 is sure to come and pass without fanfare. This week we will surely be range bound and though gold is feeling pressure, rumored to be Central bank selling, we do not expect a major move in either direction for gold or the rest of the group. Consumer Confidence came out better than expected this morning a continuation of the positive string of data for the US of late.*London is closed today. There will be no fixes.

12/27/2011 10:15	Last	%Change	Low	High
Au- Feb	1,598.40	(0.47)	1,592.50	1,609.20
Pt-April	1,442.20	0.55	1,425.30	1,443.00
Pd-Mar	660.10	(0.92)	651.65	661.00
Ag-Mar	29.030	(0.180)	28.720	29.220
EFPs	Au 1.20/2	Pt 4/8	Pd 0/4	Ag -3/3
London	AM	PM	Minor	PGMs
Au	-	-	Rh	1400
Pt	-	-	Ru	110
Pd	-	-	Ir	1100
Ag	-	DJI	12,315.42	21.42
FX	Last	%Change	Low	High
EUR	1.3063	0.03	1.3040	1.3083
JPY	77.84	(0.13)	77.76	78.03
GBP	1.5664	0.23	1.5591	1.5701
CHF	0.9345	(0.11)	0.9327	0.9384
Others	Last	%Change	Low	High
Crude- Jan	100.650	0.670	99.670	100.950
Copper-Dec	3.419	(1.290)	3.430	3.399
*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES

Date	Time	Statistic	For	Actual	Forecast	Expects	Prior	Revised
27-Dec	9:00 AM	Case-Shiller 20-city Index	Oct	-3.40%	-3.00%	-3.00%	-3.50%	-3.60%
27-Dec	10:00 AM	Consumer Confidence	Dec	64.5	60	58	56	-

Today I found out that Stephanie in our office, who works with us part time, passed her exams for licensing as a nurse in the State of New Jersey. This is something she has been working on for quite some time. We are all very proud and happy for her. But at the same time with this success comes change. Now she will search out a new job in her field. She will need to meet new people and deal with the unknown. She will certainly have concerns and learn to deal with a new environment. For most people it is a difficult task even if they don’t admit it. But like Stephanie already knows to accomplish a goal we need to get out of our comfort zone. We have to move forward with a positive attitude knowing full well that we have prepared ourselves to the new task at hand. I am not saying it is easy but it is worth doing. It is much like a wall that stands in your path. You know you need to go over it. You dread the effort you need to extol to get over. But once you have done so the relief and joy at that success keeps you on a happy and more tranquil path. It also prepares you for the next wall, that will though later still be a challenge, will not seem as hard or as high as those you have climbed before.

Have a great day!

G. Miguel Perez-Santalla

Vice President Marketing
Heraeus Precious Metals Management
540 Madison Avenue
New York, NY 10022

Heraeus Trading Holiday Schedule (Early Close - 12/23/2011)

2011-12-23T09:51:00.000-05:00

Hello All,

Please be advised that Heraeus Trading will be closing at 3:00 PM today (12/23/2011).

Heraeus Trading Schedule

12/23/2011 – Close at 3 PM

12/26/2011 – Closed

12/30/2011 – Close at 3 PM

01/02/2011 – Closed

Heraeus Vault Schedule

12/23/2011 – Close at 12 PM

12/26/2011 – Closed

12/29/2011 – Closed

12/30/2011 – Closed

01/02/2011 – Closed

Happy Holidays.

Best regards,

Fred Schoenstein

Trader

Heraeus Precious Metals Management

540 Madison Avenue, 16th Floor

New York, NY 10022

Trading Phone: 212-752-2180

Direct Phone: 212-752-2705 ext. 213

Fax: 212-752-7141

Email: fred.schoenstein@heraeus.com

Morning Indications- Around the World

2011-12-15T10:34:00.001-05:00

After yesterday’s blood bath in the precious metals markets this morning opened much improved with the exception of Platinum. There doesn’t seem to be any real concrete reason why Platinum is suffering so much with the exception that because of at this time of the year industrial consumption is totally missing and that creates less liquidity in an already thin market environment. Of course the entire group has taken a beating a gold is struggling to make its way back up over the 1600 mark. There was a large increase in open interest yesterday which indicates large amount of short sellers in the market. However on the flip side the ETFs in both gold and silver have held their ground which is a bullish signal. A weaker German manufacturing index is a negative for the global economy which in theory should support gold. The US had a mildly better than expected jobless claims and PPI was mildly higher. These numbers seem to be a net zero effect against the backdrop of yesterday price move. Overall the bears are still beating their drum attempting push levels lower but the metals will most likely hold current levels and flat line until the new year.

12/15/2011 10:30

Last

%Change

Low

High

Au- Feb

1,579.20

(0.48)

1,567.20

1,596.50

Pt-Jan

1,413.10

(0.86)

1,376.00

1,428.00

Pd-Mar

617.95

(0.26)

611.30

629.00

Ag-Mar

28.775

(0.550)

28.120

29.275

EFPs

Au 2/3

Pt 0/4

Pd 0/4

Ag 0/6

London

Minor

PGMs

15,920.00

1,574.00

1425

1,398.00

1,415.00

110

614.00

623.50

1100

28.80

DJI

11,902.00

78.52

Last

%Change

Low

High

EUR

1.3011

0.23

1.2954

1.3050

JPY

77.87

(0.21)

77.69

78.14

GBP

1.5507

0.27

1.5429

1.5530

CHF

0.9408

(1.31)

0.9385

0.9550

Others

Last

%Change

Low

High

Crude- Jan

94.990

0.030

94.690

95.990

Copper-Dec

3.280

0.270

3.311

3.270

*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES

Date

Time

Statistic

For

Actual

Forecast

Expects

Prior

Revised

15-Dec

8:30 AM

Initial Claims

10-Dec

366K

390K

385K

381K

15-Dec

8:30 AM

Continuing Claims

3-Dec

3603K

3650K

3599K

3583K

15-Dec

8:30 AM

PPI

Nov

0.30%

0.10%

-0.30%

15-Dec

8:30 AM

Core PPI

Nov

0.10%

0.00%

0.10%

0.00%

15-Dec

8:30 AM

Empire Manufacturing

Dec

9.53

0.61

15-Dec

8:30 AM

Current Account Balance

-$110.3B

-$111.0B

-$110.0B

-$118.0B

Another year has gone by and Christmas day is just around the corner. As I think back over the year I recall many people whom I spent time with both in my personal life and in my work. There are so many laughs, smile and challenges. Life is golden when you realize that it is those times spent learning and sharing that truly bring joy into the every day. If you haven’t noticed I am often called a people person. I think everyone should be people persons. But I think what is meant by it is that I am comfortable dealing with people even when I don’t know them. I guess the reason may be that I look at every person as the next friend I haven’t had time to talk to you yet. Because it is these people daily, not just those I know well, but those I know casually that fill my day. The guy at the coffee cart, the bus driver, building security and many more. Also those I get to know at dinner, in meetings, at conferences and over the phone expand my view of the world. By connecting with people I travel further than any airplane can take me and I get personal feel I would not know otherwise. I am going on vacation until after Christmas and celebrate my 50^th birthday next week. So I just wanted to say to everyone Merry Christmas and Happy Hanukah! I wish you a great holiday and I thank you for the gift you have all been in my life a true Christmas gift worth more than gold. Oops ! Did I say that ;)

Sincerely,

G. Miguel Perez-Santalla

Vice President Marketing
Heraeus Precious Metals Management
540 Madison Avenue
New York, NY 10022

Morning Indications-Black Socks

2011-12-14T10:08:00.000-05:00

UK unemployment at 17 ½ year high. Euro Zone troubles still unsolved. Weak US retail sales numbers yesterday. The global economy still looking weak. Then why are precious metals being beat up with Palladium leading today’s collapse with almost an 8% decline? One explanation may be that the demand by Euro Zone officials that Banks shore up their capital base may have many firms deleveraging by liquidity positions to raise their capital base. Even if the banks were not in commodities their customers that they are lending money to most probably have been. This action is part of the trigger that also forces other hands to fold as the market makes new short term lows. Technically the charts also have turned bearish and market sentiment plus media sentiment is throwing in behind this downward move. Meanwhile the Gold and Silver ETF have been holding their ground. The famed Economist speculator Dennis Gartman has been quoted as saying that the bull run for gold is over, of course he is talking his book. That doesn’t mean he isn’t right because he puts his money where his mouth is. Still he will flip his position faster than any US politician on record if the facts change. With the global financial markets in critical condition precious metals will most likely regain some ground in the near future. But for now the bears are in the driver’s seat.

12/14/2011 10:06			Last		%Change			Low			High
Au- Feb			1,606.60		(3.39)			1,605.00			1,645.80
Pt-Jan			1,433.40		(3.94)			1,428.00			1,484.10
Pd-Mar			616.35		(7.19)			606.95			649.50
Ag-Mar			29.220		(6.520)			28.855			31.070
EFPs			Au 2.60/3.20		Pt 1/5			Pd 0/4			Ag 2/8
London			AM		PM			Minor			PGMs
Au			1,635.00		1,603.00			Rh			1450
Pt			1,476.00		1,454.00			Ru			110
Pd			642.00		617.00			Ir			1100
Ag			29.92		DJI			11,887.16			(67.78)
FX			Last		%Change			Low			High
EUR			1.2979		(0.42)			1.2963			1.3064
JPY			78.04		0.06			77.87			78.16
GBP			1.5456		(0.16)			1.5439			1.5532
CHF			0.9492		0.39			0.9422			0.9510
Others			Last		%Change			Low			High
Crude- Jan			96.820		(3.310)			96.510			100.330
Copper-Dec			3.318		(3.350)			3.410			3.316
*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES
14-Dec	7:00 AM	MBA Mortgage Index		10-Dec		4.10%	NA		NA	12.80%		-
14-Dec	8:30 AM	Export Prices ex-ag.		Nov		-0.10%	NA		NA	-1.50%		-
14-Dec	8:30 AM	Import Prices ex-oil		Nov		-0.20%	NA		NA	-0.20%		-
14-Dec	10:30 AM	Crude Inventories		10-Dec		-	NA		NA	1.336M		-

The older I get the less complicated I want my life to be. I am not saying I can’t handle new and exciting challenges that are thrown my way but if something doesn’t need to be complicated I will find a way to keep it simple. When ageing one of the things that starts to go is our eyes. I have such a problem telling between dark colors now that it had me going crazy for a while. Picking out my socks was difficult in poor lighting, brown, black and navy all looked the same. So I made a major life changing decision. Black goes with everything. So now I only wear black socks. (Except for exercising, of course I wear white.) This decision has reduced my stress level, though minutely, enough to make me a little happier. By tweaking the little things in life it helps keep the important issues in focus. Oh, I failed to mention, the best part is I don’t miss the bus anymore because of wasting time looking for socks to match what I am wearing!

Have a great day!

G. Miguel Perez-Santalla

Vice President Marketing
Heraeus Precious Metals Management
540 Madison Avenue
New York, NY 10022

Morning Indications-Make a difference

2011-12-13T10:28:00.001-05:00

Rumor has it that the ECB lent gold to banks since last Thursday and that is where the downward pressure was coming from. But whatever reason the precious metals dropped the fact is that they are trying to regain momentum to the upside. News that Crude Oil supplies may fall short of supply due to the Iranian situation has supported that market and it seems has also lent some support to gold. In the UK, the inflation rate was surprisingly lower at 4.8% a good indicator for that economy even though the Euro zone in general is still in crisis. Switzerland announced slower growth rates and the USA had much lower than expected Retail Sales at .2% indicating slower than expected improvement. On the other side of the world the Indian Rupee is in freefall against gold slowing physical demand for the metal. Still even with slowing physical and investment demand during this period the market in general remains bullish for the long term. This afternoon the Fed will release their rate decision which is expected to remain the same.

12/13/2011 10:16			Last		%Change			Low			High
Au- Feb			1,674.30		0.36			1,654.40			1,681.70
Pt-Jan			1,500.20		0.89			1,484.00			1,506.20
Pd-Mar			666.45		0.52			650.95			674.40
Ag-Mar			31.650		2.090			30.940			32.040
EFPs			Au 3.20/4.00		Pt 1/5			Pd 0/4			Ag 3/9
London			AM		PM			Minor			PGMs
Au			1,665.00		1,672.50			Rh			1525
Pt			1,493.00		1,492.00			Ru			110
Pd			654.00		661.00			Ir			1100
Ag			31.34		DJI			12,135.97			114.58
FX			Last		%Change			Low			High
EUR			1.3182		(0.03)			1.3158			1.3237
JPY			77.74		(0.18)			77.60			77.97
GBP			1.5591		0.07			1.5561			1.5629
CHF			0.9365		(0.06)			0.9335			0.9390
Others			Last		%Change			Low			High
Crude- Jan			100.330		2.610			97.640			101.250
Copper-Dec			3.474		0.550			3.476			3.443
*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES
13-Dec	8:30 AM	Retail Sales		Nov		0.20%	0.80%		0.60%	0.60%		0.50%
13-Dec	8:30 AM	Retail Sales ex-auto		Nov		0.20%	0.60%		0.50%	0.60%		-
13-Dec	10:00 AM	Business Inventories		Oct		-	0.90%		0.90%	0.00%		-
13-Dec	2:15 PM	FOMC Rate Decision		Dec		-	0.25%		0.25%	0.25%		-

Our ability to affect change is much greater than most of us realize. It is actually a deception if we are led to believe otherwise. Of course I am not saying that what we want to happen will happen. What I am saying is that what we share and the positive actions we take do influence the course of events. Also the negative also influence the course of events. That is why it is so important to always do our best and with love always in our hearts. Every mistake we make will catch up to us unfortunately and the less we make the better off we will be. So though our actions may not be earth shattering they do matter. Remember, it may be your kind word or helpful suggestion that makes someone’s day today. We can all make a difference.

Have a great day!

G. Miguel Perez-Santalla

Vice President Marketing
Heraeus Precious Metals Management
540 Madison Avenue
New York, NY 10022

Morning Indications- Family Life

2011-12-12T10:41:00.000-05:00

More liquidation across the board of commodities is driving the precious metals down as well. The US dollar has gained momentum and the Euro Bond markets are taking a beating on the less than favorable negative vote from the UK against proposed Euro measures. Down again has read its head, once again raising capital seems to be the action of need at the moment. It seems to many that this may be a pre Christmas gift for those that did not get in on the last downturn. Considering that all other economic factors that have driven commodities prices higher are relatively intact we would expect that it is only a matter of time before the tide turns once again. But for now while many are squaring positions before year end to complete their window dressing ahead of vacations the downward pressure may hold the prices in low end of recent ranges until year end.

12/12/2011 10:40	Last	%Change	Low	High
Au- Feb	1,663.20	(3.12)	1,660.30	1,718.60
Pt-Jan	1,483.90	(2.10)	1,483.50	1,520.00
Pd-Mar	654.45	(4.66)	653.25	684.90
Ag-Mar	31.000	(3.880)	30.920	32.300
EFPs	Au 3.40/4.20	Pt 1/5	Pd 1/5	Ag 3/9
London	AM	PM	Minor	PGMs
Au	1,680.00	1,659.50	Rh	1525
Pt	1,492.00	1,485.00	Ru	110
Pd	668.00	663.00	Ir	1100
Ag	31.22	DJI	12,012.38	(171.88)
FX	Last	%Change	Low	High
EUR	1.3213	(1.27)	1.3207	1.3378
JPY	77.86	0.33	77.54	78.00
GBP	1.5609	(0.37)	1.5533	1.5657
CHF	0.9351	1.34	0.9240	0.9356
Others	Last	%Change	Low	High
Crude- Jan	97.870	(1.540)	97.570	99.680
Copper-Dec	3.428	(3.350)	3.505	3.428
*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES

In this world we have people who are definitely ill. Not meaning physically ill but mentally as is obviously seen by the perversity of violent and sexual crimes we read about daily in the news. However if you were to take those numbers you would see that by percentage it represents a very minute portion of the population of honest and healthy minded individuals. So why do we still have issues between those people of politics and beliefs? I personally blame it all on big government. Big government takes away Human Rights because it views the people as a herd. Only small self governing bodies have real concern for their citizens because they themselves are citizens. Those in power view themselves as part of the community not above the community. The model of the family is the most important in this world. If we were to maintain smaller communities taking care of each other then there would be more peace in this existence. Then when we see each other as brothers there would be no wars or violence. Because no matter what happens with real dialogue and familial love and concern for each other even errors in judgments would be forgiven. Because after all that is what brothers and sisters do, they forgive each other and life goes on.

Have a great day!

G. Miguel Perez-Santalla

Vice President Marketing
Heraeus Precious Metals Management
540 Madison Avenue
New York, NY 10022

2012 1/10 oz Gold American Eagle	$182.53	$199.82
2012 1/4 oz Gold American Eagle	$447.80	$471.81
2012 1/2 oz Gold American Eagle	$878.54	$922.27
2012 1 oz Gold American Eagle	$1,750.90	$1,795.89
2011 1 oz Gold Buffalo	$1,745.90	$1,797.89
1 oz Gold American Eagle Random Year	$1,743.90	$1,787.89
1 oz Gold Canadian Maple Leaf - Random Year	$1,720.90	$1,762.89
2012 1 oz Gold Canadian Maple Leaf	$1,722.90	$1,767.89
1 oz Gold South African Krugerrand - Random Year	$1,715.90	$1,752.89
2012 1 oz Gold South African Krugerrand	$1,732.90	$1,787.89
1 oz Gold Austrian Philharmonic - Random Year	$1,720.90	$1,767.89