Mid-Day Gold & Silver Market Report – 4/25/2011
IS SILVER THE NEW SAFE HAVEN CURRENCY? – Although silver prices have backed off due to morning profit taking, the big question remains; why has silver been on this explosive run? This question was posed to CNBC’s Fast Money Traders Monday morning. What is at the heart of all of this is a distrust in paper money,” explained John Stephenson, a Senior Vice President and Portfolio Manager at First Asset Funds. “So long as the Fed keeps interest rates below inflation – anything below 2% -- these commodities will keep going higher.” It is expected that the Fed will come out tomorrow and announce that they are maintaining interest rates at record lows. The action – or, more appropriately, inaction – by the Fed will continue to fuel the demand for alternatives to the dollar, said Stephenson.
US new-home sales rose 11.1% in March, but to keep thing in context, the previous month had been a record low. “It’s a nice rebound from February but the bottom line is housing is continuing to trend sideways,” said Omair Sharif, an economist at RBS Securities Inc. in Stamford, Connecticut, who correctly forecast March sales. “Builders have been doing their bit in paring inventory but the problem is they’re facing competition from distressed properties, high unemployment and prices that are still falling.”
At 12 PM the APMEX precious metal prices were:
- Gold price - $1,510.30 (up $5.50)
- Silver price - $47.34 (up $1.21)
- Platinum price - $1,825.60 (up $5.90)
- Palladium price - $762.50 (down $7.50)