STOCKS PLUMMET FOLLOWING ELECTION AND FISCAL CLIFF GRIDLOCK WORRIES
The Dow Jones Industrial Average fell more than 312 points today, making it the largest single-day plunge of 2012. Now that the presidential election results are finalized, investors are shifting their focus towards the United States’ impending “fiscal cliff.” With more than $600 billion in tax increases and spending cuts set to commence in January, officials in Washington must work vehemently to avoid the potential disaster that could cripple the U.S. economic recovery. Concerns remain that failure to reach bipartisan resolutions in our nation’s capital might prevent a solution from being reached in time.
Unlike the massive downturn in the stock market, the Gold price ended relatively flat today. Retention of the Obama administration has analysts predicting a continuance of current fiscal policy, which has included liberal government spending in an effort to stimulate the nation’s struggling economy. Investors awaiting an outcome of the election can now decide how to structure their portfolios. “It’s a rush to safe haven,” said James Paulsen, the chief investment strategist at Minneapolis-based Wells Capital Management. During times of market uncertainty and dollar devaluation, the most sought-after safe haven investment has historically been Gold.
At 5 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,719.00, Up $2.50.
- Silver, $31.85, Down $0.23.
- Platinum, $1,541.50, Down $15.30.
- Palladium, $612.20, Down $8.90.
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