Closing Gold & Silver Market Report - 6/1/2011
GREEK CREDIT CUT, QE3 NOT LOOKING LIKELY
Earlier in the day there were hopes Greece would finally be getting the economic help it needs to sustain itself. However, Moody’s has cut Greece’s credit rating by three notches, which puts it in an extremely speculative phase. This means that the payoff of Greek debt is no longer based on funds and paybacks of loans, but speculation. The outlook is quite negative. The Gross Domestic Product rating has also fallen off, 3.0% so far this year and 4.5% in 2010. Greece’s Finance Ministry disputes the credit rating cut stating Moody’s is not taking into consideration the government’s attempts to gain traction and also states, "(The downgrade) is influenced by intense rumour in the media and overlooks the Greek government's pledges to achieve its fiscal targets for 2011 and to accelerate privatizations.”
The domestic news also appears to be shaky as Wall Street closed with its worst session since August 2010. The poor jobs, housing and automotive news of the day have left most investors facing a tough question: Is the economic outlook of the last couple months improving, or is the recovery fading? The global and domestic news has reaffirmed the appeal of gold as a source of safety in times of economic uncertainty. According to David Lee, a precious metals trader with Haraeus Precious Metals Management in New York, "I think we're still with the safe-haven play on gold. Gold is the only thing that's still up today. People are a bit afraid of the weak economy and what happened to the dollar."
At 4:16 PM (CT) the APMEX precious metals prices were:
- Gold price - $1542.40 (up $5.10)
- Silver price - $36.92 (down $1.48)
- Platinum price - $1821.70 (down $13.30)
- Palladium price - $773.10 (down $9.90)
When looking at something to stash away that is cost effective and popular in gold, Pamp Suisse Gold Bars are a good safe purchase.