Closing Gold & Silver Market Report – 8/9/2011
STOCKS RECOVER FROM YESTERDAY’S SELLOFF BUT BERNANAKE SAYS ECONOMY IS AT RISK – Stocks rose sharply today, recovering much of yesterday’s losses. Gold held steady, still viewed by many as a safe haven asset in times of volatility. The big news of the day was the release of the report from the Federal Open Markets Committee, a decision-making panel of the Federal Reserve. Upon the release, Fed Chairman Ben Bernanke made a statement, in which he said, “Economic growth so far this year has been considerably slower than the committee had expected,” and that the “downside risks to the economic outlook have increased.” While stopping short of announcing further rounds of quantitative easing, Bernanke did say that the Fed was keeping key interest rates at very low levels until at least 2013, an indication that the Fed does not think that the slowdown will end anytime soon.
Is it too late to invest in gold? With U.S. debt downgraded, Treasury Bills are no longer seen as the completely risk-free assets they used to be. Meanwhile, gold has been on an astounding run for the past few days as investors flock to it as a store of wealth and a safe haven. William Rhind, Managing Director of ETF Securities says, “The fundamentals to invest in gold have not changed… The only thing that has changed is that investment case is stronger - the world's best credit, the U.S. government - has been downgraded. It's no longer as safe as it was."
At 4:15pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,748.60 – Up $33.40.
- Silver - $37.83 – Down $1.66.
- Platinum - $1,761.00 – Up $37.40.
- Palladium - $742.60 – Up $12.10.