GOLD MOVES UP ON EUROPE HOPE; THE COST AFTER THE STORM
For the second day in a row, the Gold price has moved upwards. There are a few reasons for the upswing. “Gold is getting some bids today because of optimism about Europe,” Sterling Smith, a futures specialist at Citigroup Inc, said. Another reason is the holdings in bullion-backed products have risen to a new record of more than 2,587 metric tons. With trading open for the first time this week in New York City due to Hurricane Sandy and with the upcoming U.S. jobs report on Friday, there could be more movement in the near future.
Now that the major part of the storm has passed over the East Coast of the United States, there is one glaring question: How much is it going to cost to rebuild? The first estimate puts the bill somewhere in the range of $50 billion. There are some economists who are trying to put a positive spin on the situation by theorizing the rebuilding and cleanup efforts will bring financial stimulus into the area. However, research has been done on the subject and it does not seem likely to play out in that fashion. “It would be naïve to put forward the view that a hurricane is in some sense a stimulus for the economy,” wrote IHS Global Insight U.S. Economists Gregory Daco and Nigel Gault. “There's no guarantee that reconstruction activity will be extra activity, on top of what would otherwise have occurred, rather than a substitute for that activity."
At 1 pm (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1725.80, Up $13.20.
- Silver, $32.39, Up $0.56.
- Platinum, $1572.60, Up $21.50.
- Palladium, $610.80, Up $13.70.
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