Mid-Day Gold & Silver Market Report – 6/1/2011
U.S. ECONOMY IS SLOWING DOWN, RUMORS OF QE3 – It’s hard to find good news about the economy lately. Painfully slow jobs growth, decline in the value of the dollar, falling manufacturing statistics, a double-dip housing recession, not to mention ridiculous fuel prices. Citigroup announced that the currency markets may be pricing in another round of dollar-crushing quantitative easing by the Federal Reserve. Considering QE2 is not even over yet and we can already see inflating commodity prices, where will QE3 take us? A larger question: How many jobs does the Fed’s loose monetary policy actually create? And does it make us stronger as a country?
For all the doom and gloom out there today, a rare bit of good news does exist: it looks like Greece may actually get the bailout it needs to stay afloat. Economic advisors may have found a way to adjust Greek debt without actually causing a default. The result would be similar to refinancing a house, where loan payments decrease in exchange for longer repayment schedules. Any kind of default or restructuring could be catastrophic and possibly start a domino effect throughout the market, similar to the housing crisis of 2008.
At 12:08PM (CT) the APMEX precious metals spot prices were:
- Gold - $1,547.60 (up $10.30 on the day)
- Silver - $37.94 (down $0.47)
- Platinum - $1,827.30 (down $7.70)
- Palladium - $782.40 (down $0.60)