Mid-Day Gold & Silver Market Report – 4/20/2011
GOLD BREAKS RECORD HIGHS ON INFLATION CONCERNS
Gold has risen 32 percent this year against the dollar that has fallen 7.4 percent. Matt Zeman, senior market strategist at Kingswiew Financial in Chicago says, “For the dollar, the S&P statement was like getting kicked when you’re already down. The dollar is losing its status as the king of the hill, and gold is looking to take its place.” With gold and silver having already surpassed their yearly expectations, Brian Hicks, co-manager of the U.S. Global Investors Global Resources Fund, is increasing his price target to $2,000 in 18 months and silver to $100. He states that we are in a very bull market and he does not see it slowing down as the precious metals market have rallied through the adjusted inflation highs and yet are still in extremely small markets.
Nick Barisheff, CEO of Bullion Management Group says he thinks we are moving into a time where institutions are getting more involved in the purchasing of precious metals, citing the University of Texas Investment Management, one of the largest pension funds, taking delivery of 6,643 gold bars. He says, in 2009 “we had central banks starting to buy and once you [have] institutions…coming around to the conclusion that they need to add a meaningful percentage” the prices are going to go higher.
At 12PM (CT) the APMEX precious metal prices were:
- Gold price - $1,500.40 (up $4.30)
- Silver price - $44.79 (up 81 cents)
- Platinum price - $1,801.80 (up $31.50)
- Palladium price - $757.10 (up $25.10)