Morning Gold & Silver Report – 3/15/2011
At 8:05 AM (CT) the APMEX precious metals prices were:
- Gold price - $1392.50
- Silver price - $34.13
- Platinum price - $1711.50
- Palladium price - $711.50
COMMENTARY: The major morning news continues to be the developing economic situation in Japan. The search for survivors is still on. As quarantine zones are put in place, the fear of nuclear meltdown is still prevalent. At this time the nuclear fear is on the level of Three Mile Island, but not quite to the level of Chernobyl. The big hit to industrial metals (platinum, palladium and silver) is the shut down of all automotive plants in Japan. The shut down affects the American plants as well because the parts are not being produced. The Bank of Japan has even agreed to pump almost $100 billion more into the Japanese economy to quell fears of an economic downfall.
The fears in the Middle East are still substantial as rebel forces in Libya are asking Western powers to implement a no-fly zone while Muammar Gaddafi’s forces continue to push back the rebel uprising. The other major concern now lies in the fact that Saudi Arabian troops have entered the island nation of Bahrain, to the dismay of its citizens and Iran.
With the Japanese markets impacting our own stock markets, investors are selling off their gains in precious metals to offset the losses in the global marketplace. The Nikkei (Japanese stock market) has hit its worst levels since 1987. The hedge fund sell off is hurting the efforts of the banks to try and buoy the economy at this point. There was a rise early on due to reconstruction estimates, but globally the pullout of one of the stronger world economies has wreaked havoc domestically and globally. “Today’s market moves truly show the severity of Japan's situation. It's a true market, it's not a lie or speculation. We're not talking any more about power cuts, earthquake or tsunami, we're talking about which areas will get most radioactive exposure,” said a chief trader at a Japanese securities firm.
All the news should be helping the safe haven appeal of gold in times of crisis but the sell-off is curtailing the appeal at this time.
Gold spot price is down $33.40 – Silver price is down $1.80 – Platinum spot price is down $41.80 – Palladium price is down $37.00