Closing Gold & Silver Market Report – 6/3/2013
MARKET’S FOCUS IS ON ‘THE OTHER BULLION’
Rick Rule of Sprott Asset Management remains bullish for Gold especially in the long-term, but is presently optimistic for the underrated metals Platinum and Palladium. “We call that ‘The Other Bullion,’” he said. “What's particularly attractive about it is that the above-ground inventory is less than 12 months fabrication supply. There is no historical supply. All of the supply is new-mine supply,” Rule said regarding the Silver-white metals. Rule commented on Gold and its performance by saying, “Certainly, it's due for a technical recovery,” he said. “Would you rather own Gold, or would you rather own the U.S. 10-year Treasury, which Jim Grant famously decided was a return-free risk?” When asked about investors’ portfolios he agreed Gold is an important factor to consider. “Within the general stock market, there's a place for that in every portfolio, but also I think an insurance trade, which Gold generally has been, has a place in every portfolio, too.”
Additional mixed U.S. economic data was released today with manufacturing activity showing a decline in May for the first time in six months and a slight rise in construction spending, although it was less than expected. Also, the Institute for Supply Management (ISM) reported its index of national factory activity fell to 49.0 in May (a reading below 50 signifies a reduction in the manufacturing sector). Economists suggest that U.S. economic growth in the second quarter will slow from the first quarter’s 2.4 percent.
At 5:15 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,412.80, Up $17.80.
- Silver, $22.77, Up $0.43.
- Platinum, $1,498.70, Up $35.40.
- Palladium, $758.10, Up $4.50.
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