Mid-Day Gold & Silver Market Report 4/13/2012
GOLD’S ABILITY TO DIVERSIFY PORTFOLIO AND LIQUIDITY DRAW PRAISES
What is driving the Gold market? Appearing on CNBC, Juan Carlos Artigas from the World Gold Council stated his answer to that question and discussed how Gold is being used. He said Gold is known for its use in jewelry, as an investment, and in technology. The newest use of Gold is central banks’ purchasing of the yellow metal. Artigas focused on Gold’s liquidity, saying, “It’s amazing how liquid Gold is. When you think about Gold in the context of a portfolio, which is very interesting, Gold provides diversification, risk management in terms of the portfolio. One of the aspects of management is liquidity.”
Gold’s price remains down due a strengthening U.S. dollar and lower-than-expected growth data from China, as mentioned in the Morning Gold & Silver Market Report. UBS forecasts an upswing for Gold’s price in only a few months, saying, “There has been a good deal of interest in upside options, particularly for $1,800 June calls, with Gold’s safe-haven performance on Tuesday the likely catalyst.”
Investors are skeptical of European investments at this time, with Spanish banks borrowing a reported $316.3 billion euros from the European Central Bank last month. The market believes most of the funds may have been invested in domestic sovereign debt. James Dailey of TEAM Asset Strategy Fund said, “The concern is now on global recession. The data out of China and our consumer sentiment data point to a recession, (of) which the market has been in denial for a while.”
At noon (CDT), the APMEX precious metals spot prices were:
- Gold - $1.668.20 - Down $12.90.
- Silver - $31.66 – Down $0.93.
- Platinum - $1,587.60 – Down $17.40.
- Palladium - $647.80 – Down $6.30.
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