Mid-Day Gold & Silver Market Report – 9/14/2011
GREEK DEFAULT COULD BE IMMINENT
Gold has slipped slightly since the Morning Commentary, down approximately 0.5% since then. Silver has ticked down as well by about the same percentage.
Despite stocks being up on U.S. and European exchanges today, the market seems to be anticipating a default by debt-ridden Greece sooner rather than later. The cost to insure $10 million of Greek bonds against default has jumped up 250 basis points ($250,000) in the last 24 hours, indicating rising concern from bond traders that a Greek default is becoming more and more likely. According to Simon Smith, Chief Economist at FxPro, “Many charts are maxing out or in free-fall, be it Greek [credit default swaps], European bank shares, peripheral spreads over Germany or German yields themselves.” However, it appears that China might be the angel investor that Europe needs right now.
Looking at the economy on a global scale, World Bank President Robert Zoellick says that a double-dip recession is avoidable, but we are currently in the “danger zone.” “Unless Europe, Japan, and the United States can also face up to responsibilities they will drag down not only themselves but the global economy,” Zoellick said in a speech this morning.
At 12:00 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,820.40 – Down $11.70.
- Silver - $40.65 – Down $0.62.
- Platinum - $1,815.80 – Up $1.30.
- Palladium - $721.10 – Down $7.40.