Morning Gold & Silver Market Report – 12/21/2010
At 8AM (CT) the APMEX precious metal prices were:
- Gold price - $1,392.40
- Silver price - $29.54
- Platinum price - $1,721.00
- Palladium price - $751.40
COMMENTARY: Gold spot price is up $5.40 – Silver price is up 17 cents – Platinum spot price is up $9.30 – Palladium price is up $5.60
Precious metal prices should continue to trade in choppy waters throughout the end of the year. You can see analyst take both sides (bulls and bears) of the precious metal 2011 forecast. The bulls point out that the same fragile economic environment, fiat currency fluctuations and geopolitical tensions that have driven prices up are still in play. The European crisis is certainly still a concern. Moody’s is evaluating downgrades in Greece, Ireland, Portugal and Spain. Just today a report came out announcing that Spain’s short term borrowing costs have risen as the bid to cover rates continue to go up.
On the bear side, Doug Kass is expecting gold to plunge $250. He agrees that the same forces are in play that drove prices up, he simply says that too many people (hedge funds, institutional investors and individuals) are buying. Gold has become a crowded trade, according to Kass. This writer would ask this question. At your next PTA meeting (or something similar) if you asked everyone to raise their hand who owns gold, would you see a crowded trade?