Morning Gold & Silver Report –5/25/2011
DEBT CRISIS DEBT CRISIS DEBT CRISIS -
According to a poll by the Washington Post, Americans are far more worried by the overall growing US debt, than they are worried about whether Congress will raise the debt limit. When asked to express their biggest concern, nearly half said they feared that our debt would just keep growing well beyond the current $14.3 trillion dollar limit, with no end in sight. Only 35% were concerned about the possible ramifications of a failure to raise the debt limit.
The European debt crisis is drawing more and more concern and this has pushed gold prices higher. Gold is seen as a protector of wealth and a recent World Gold Council report showed strong buying during the first quarter from China, India and the European nations. European policy makers continue to disagree on how to solve Greek’s problems ,while at the same time keeping an eye out looking at Portugal, Ireland, Italy and Spain. These debt concerns have pounded the euro to record lows vs. the Swiss franc.
The Organization for Economic Cooperation and Development stated in their 2011 Economic Outlook that the risks to a global recovery remain significant. In their view, neither the US or Japan has put forth a credible medium term plan to stabilize their growing debt, while many other countries continue to wrestle with how they are going to get their economic house in order. In their opinion, The US Federal Reserve should be raising interest rates, while the European Banks should be slowing down (increases).
At 7:30 AM (CT) the APMEX precious metal prices were:
- Gold price - $1,527.30 (up $2.40)
- Silver price - $37.19 (up 97 cents)
- Platinum price - $1,774.10 (up $10.60)
- Palladium price - $746.90 (up $7.70)