Mid-Day Gold & Silver Market Report – 2/18/2011
- Gold price - $1,390.90
- Silver price - $32.80
- Platinum price - $1,845.20
- Palladium price - $859.00
COMMENTARY: Precious metal prices are taking off today, but silver is skyrocketing. It is up over 6% in just the last couple of days. Gold spot price is currently up $5.30 – Silver price is up $1.15 – Platinum price is up $1.20 – Palladium price is up $14.00
It is our opinion that the same forces applying upward pressure to metal prices are still in play. Middle Eastern turmoil, inflationary pressures and concerns, budget deficits and the expectation of even more buying out of China. The inflation red flag was raised slightly higher today as European Central Bank board member Lorenzo Smaghi declared the bank might raise rates in reaction to global inflationary pressure.
You all should remember the “Flash Crash” . On May 6,2010, the market went down some 700 points within minutes. What you might not know is that despite a special commission being appointed, the SEC powers and the NYSE powers, there is not a specific cause yet identified. A flash crash panel came out today with recommendations on how to prevent another one from happening and it calls for a fairly major market overall. This should frighten us on two levels. First, they apparently believe it can happen again. Two,since it calls for a major overhaul, probably nothing will happen. If you are a precious metal investor, how much of this allocation needs to be in the hard physical asset? Something you can hold in your hand and will not be effected by a “flash crash.”