Closing Gold & Silver Market Report – 7/18/2011
DEBT CEILING CLOCK TICKING, BACK UP PLANS EMERGE
President Obama has threatened to veto a most recent proposal involving the U.S. debt limit ceiling as long as it includes balancing of budget is a requirement. With the August 2 deadline looming Congressional leaders are going to “…Stay in session every day, including Saturdays and Sundays, until Congress passes legislation that prevents the United States from defaulting on our obligations,” according to Harry Reid, Senate Majority Leader. Reid and Mitch McConnell, of Kentucky, are working diligently to not default on the debt, while also working on a plan that could balance the budget.
The confluence of debt ceiling, balancing the budget and Eurozone debt crises has created a lot of strife. Today yet another credit rating agency, Fitch Ratings, has come out and warned the U.S. would be placed on “watch negative”. According to Oliver Pursche, President of Gary Goldberg Financial Service in Suffern, New York, "There's a perfect storm happening on a global macroeconomic basis with no debt deal here and the ongoing issues in Europe, and the market is looking at all these things and is fairly anxious." Also recently chiming in on the subject is noted economist Dennis Gartman who recently stated in his Gartman Letter, "Europeans primarily are fearful about the future of their currency and are exiting positions there for Swiss francs and Gold...Were we a German lawyer, or doctor, or small business owners, we'd be buying Gold."
Gold rose to a record $1,607.90 an ounce, capping the longest rally in 31 years, as debt concerns in Europe and the U.S. boosted demand for the metal as a safe haven. Technical charts indicate that within the next few months, Gold should rise above $1,700 an ounce. Robert Lutts, chief investment officer of Cabot Money Management quoted, "A move to $2,000 in the next six to nine months is not that crazy in gold." Silver hit a two month high, soaring nearly 4 percent, of $40.70 and has ended up 2.5 percent to $40.27. In the past two weeks Silver has jumped more than 15 percent.
In these growing uncertain times, a nice safe haven gold investment choice, would easily be the world-renowned Pamp Suisse Gold Bar.
At 4:15 PM (CT) the APMEX precious metals spot prices were:
- Gold - $1,606.50 – Up $15.40 on the day.
- Silver - $40.62 – Up $1.49.
- Platinum - $1,776.90 – Up $21.40.
- Palladium - $798.40 – Up $15.80.