Closing Gold & Silver Market Report –2/16/2011
At 4PM (CT) the APMEX precious metal prices were:
- Gold price - $1,376.50
- Silver price - $30.74
- Platinum price -$1,833.00
- Palladium price - $843.10
COMMENTARY:Precious metal prices traded within a tight range despite Iranian warships cruising into the Mediterranean Sea and a fairly alarming Producer Price Index report. It appears that the Central Banks are just not alarmed about inflation. Why? There are two reasons. Unemployment is so high that they cannot foresee increases in wages. In other words, if you have a job you will be most concerned with keeping it. The second reason is with this struggling economy, producers simply will not be able to pass these rising costs to the consumer…at least not yet. If you ask me, it sounds like a tinder box filled with dry twigs and twenty people are trying to light a match while standing over it. Sooner or later, something is going to ignite.
We comment time and time again on China’s influence on the precious metal markets. Chinese officials have stated they intend to raise gold’s allocation from 3% to 60% of their foreign currency reserves. Today, China’s top bank comes out and forecasts explosive growth for both gold and silver. As more Chinese citizens amass greater wealth, they will look to diversify their investments and gold offers a hedge to inflation.
Gold spot price finished up $1.90 – Silver price was slightly down 3 cents – Platinum spot price was up $1.40 – Palladium price was up $1.30