KNEE JERK REACTIONS TURN INTO SOBER SECOND THOUGHTS – Yesterday’s report from S&P is still causing uncertainty in the market, “If yesterday was about knee-jerk reactions, today is about sober second thoughts and the realization that there are still issues outstanding.” said David Watt, senior currency strategist at RBC Capital Markets. When those outstanding issues are considered, i.e. a weaker dollar and future inflation, people seek out safe places to invest. Many investors see gold as the best place to park their money when there is such uncertainty. Carlos Sanchez, director of commodities management at New York-based CPM Group, said, “Prices could go as high as $1,550 in the next couple of weeks as investors focus on political gridlock in Washington.” It is not all doom and gloom for the dollar, even though the dollar index fell today to 75.038. Lawrence Williams, journalist for Mineweb.com reported, “If it wasn't for dollar strength, which will have mitigated its price rise, gold would have burst through the $1,500 psychological barrier yesterday - comfortably.”
Silver prices closed above $44 an ounce today, breaking another 31 year record. In fact, silver has risen almost $10 in the past 30 days, approximately 29%.
At 4PM CT the APMEX precious metals prices were:
- Gold price - $1,496.20 (up $2.30)
- Silver price - $44.02 (up $1.00)
- Platinum price - $1,773.90 (down $7.90)
- Palladium price- $733.00 (down $7.10)
90% Silver half dollars on sale.