Closing Gold & Silver Market Report – 6/20/2011
EUROPEAN UNITY OF PURPOSE SOUGHT
The news of the day still involves Greece. The Greek debt crisis is reaching its boiling point. The vote of the finance ministers ended without the resolution a number of investors had been seeking. The reach of the austerity measures is quite vast. There are talks of further real estate taxes, restaurant bills, soft drinks, swimming pools, and even layoffs within a five-year period. These are serious issues facing the Greek people. George Papandreou, Greece’s Prime Minister, says, “We are determined as a country, as a government, to be on track with the program, to move forward, to do what is necessary in order to put our country into a fiscally much more viable position. At the same time, we do hope that the European Union will have also the similar will.”
The other concern globally focuses on the Middle East. Libya is drawing international concern as NATO aerial strikes are resulting in unfortunate loss of civilian lives. Italy’s Foreign Minister, Franco Frattini, said, "NATO is endangering its credibility; we cannot risk killing civilians." And "We cannot continue our shortcomings in the way we communicate with the public, which doesn't keep up with the daily propaganda of Gaddafi." In Syria, President Bashar al-Assad’s press conference did very little to curb protests there. The concern is growing as Turkey, which has long had a ‘zero problems with neighbors’ policy, has started to call for action from Assad or foreign influence may commence.
According to analysts, Greek default after all is buoying the safe-haven appeal of gold. However with the decrease of the dollar in relation to the euro it has really held the price in check. There is a ‘wait and see’ approach to this week awaiting the Federal Reserve’s meeting this week about interest rates.
The safe-haven appeal of gold, still being at a high point, and with the price of the dollar being where it is, a solid product to look into would be the world renowned Pamp Suisse Gold Bar.
At 4:15 PM (CT) the APMEX precious metals’ prices were:
- Gold price – $1541.30 (up $1.70)
- Silver price – $36.12 (up $0.28)
- Platinum price – $1737.00 (down $16.10)
- Palladium price - $750.50 (up $3.10)