Closing Gold & Silver Market Report, 8/16/2012
CENTRAL BANKS MAY REACH RECORD YEAR AS NET BUYERS OF PRECIOUS METALS
The World Gold Council (WGC) reported today that Gold demand fell to its lowest point in over two years during the second quarter. The fluctuation with Gold demand is due to key consumers such as India and China acquiring less, offsetting a notable quarter for central bank acquisitions. Marcus Grubb at WGC commented on how central banks may set a record with their increased Precious Metals holdings this year compared to last. Grubb said, “If you look to the half year, central banks have bought 254 tons against 200 tons for the half year last year. At this rate, we'll be looking at a record central bank year, higher than last year, which was a record since 1964.”
Economists in a recent Reuters poll said they see a worsening outlook with no anticipation for Europe’s debt crisis to be contained or for a significant economic recovery. The measures being taken to save the euro are not reassuring to economists that an improved economy is on the horizon. “The biggest drag on global growth in the second half of 2012 will be from the eurozone,” said Andrew Kenningham, senior global economist at consultancy Capital Economics, in a note. “Even if the eurozone manages to survive in its current form, the ongoing austerity and high credit spreads suggest the growth outlook is bleak.”
At 5:01 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,615.90, Up $10.80.
- Silver, $28.26, Up $0.34.
- Platinum, $1,443.10, Up $45.90.
- Palladium, $585.40, Up $5.80.
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