Mid-Day Gold & Silver Market Report – 3/15/2011
At 12PM (CT) the APMEX precious metal prices were:
- Gold price - $1,395.20
- Silver price - $34.29
- Platinum price - $1,706.00
- Palladium price - $704.30
COMMENTARY: Precious metal prices have bounced off their lows, but are still significantly down for the day. Gold spot price is off $30.70 – Silver price is off $1.62 – Platinum price is off $47.30 – Palladium price is off $44.90.
The potential for a nuclear disaster in Japan, continues to push the equity and commodity markets down.It may not be the panic selling of 2008, but the US stock market is down triple digits for the second day in a row. Riskier investments are not the investment of choice in this uncertain environment, so we can understand the sell off of stocks. Oil has dipped on the fear that the global economy may have just received a significant set back. Platinum and palladium are crashing because of their high use in the automobile industry. Considering that silver was at $27 just a few short months ago, this might be viewed as a small correction, but what about gold? Many reporters have commented that you would expect gold to go up in these circumstances. So why hasn’t it? In short, it would be margin calls. Hedge funds,institutions and high net worth individuals are strapped for cash to cover margin calls. Gold gives them the instant liquidity they need right now…but once the calls are covered, then what? There would appear to be many factors in play to drive both gold and silver up.
One of those factors is the Middle East, where Saudi Arabia moved troops into Bahrain despite US wishes to the contrary. Gaddafi keeps raging in Libya, while the rest of the world sits on their hands and watch. If not for Japan, the Middle East would still be front and center as it is becoming more and more unsettled.