Mid-Day Gold & Silver Market Report – 6/14/2011
CHINA FEARFUL OF GREECE, MIDDLE EAST WORSENS
After S&P cut Greece’s credit rating yesterday, European finance chiefs have come together to work on plans for rescuing Greece. The issue still boils down to whether Greece will default. If you listen to Vincent Truglia, managing director at New York-based Granite Springs Asset Management LLP and a former head of the sovereign risk unit at Moody’s, “Greece will default; it’s a question of when, rather than if…It’s a basic solvency issue rather than a liquidity issue. Only a debt writedown will do.” However, Christian Noyer, Governing Council member, “Our position is extremely simple: if there is a solution that avoids a risk of default, it seems suitable. If you can’t find it, it’s better to avoid touching the debt. If despite everything you try to reduce the debt and you provoke a risk of default, you’ll have to finance the entire Greek economy.” The rhetoric has caught the attention of China. The People’s Bank of China has maintained that the European debt crisis can still get worse and the lack of long-term plans to correct issues which risk any hope of global economic recovery.
The Middle East continues to be a concern. Syrian troops continue their assault against civilians demanding political change. There is a lot of concern in the global community over the treatment of the civilians. France, Turkey and Britain feel Syria should be held accountable for their actions, while Lebanon, Iran (OPEC anyone?) and Middle East-based Hezbollah all feel that kind of action would only serve U.S. and Israeli interests.
At 12 PM (CT) the APMEX precious metals’ prices were:
- Gold price – $1521.60 (up $5.50)
- Silver price – $35.14 (up $0.31)
- Platinum price – $1796.50 (down $11.30)
- Palladium price - $795.00 (down $7.30)