Closing Gold & Silver Market Report – 9/16/2011
U.S. STOCKS CLOSED HIGHER FOR 5TH DAY IN A ROW
Precious metals have settled since mid-day trading as two U.S. stock indexes continue to rise.
Some have an optimistic look at the future of our world’s financial situation, thinking there is a seemingly simple solution to the current financial and political problems we are having. Benjy Schwartz, Chief Market Strategist at Lightspeed Financial, says, “People are looking for some kind of certainty between Europe and the U.S., and we’re hoping by Oct. 11 for a conclusion to Greece, and more important Italy and Spain…They have plenty of time to come up with concepts that would facilitate stability. If we could all come together to work on the economic woes of this world it would help everybody…The federal government needs to show support for the American people by putting together some sort of jobs package, not by being political but by reasonable.”
There are many out there who do not feel that the world will be getting better any time soon and feel very bullish about gold as a strong asset class to invest in. They also see the potential for growth in this uncertainty. Martin Roberge, analyst at Canaccord Genuity, feels that this is just the calm before the storm for gold. Canaccord writes in a research note, “…investors shouldn’t let $1,800 gold dissuade them from participating in precious metals…The world is still dramatically underexposed to gold, and we firmly believe it should represent a higher percentage of investors’ total portfolios today.”
On a side note, China is making a move to accelerate gold trading by setting a national gold standard.
At 4:00 PM (CT) the APMEX precious metals spot prices were:
- Gold - $1,811.10 – Up $31.20.
- Silver - $40.76 – Up $1.24.
- Platinum - $1,815.50 – Up $31.90.
- Palladium - $737.00 – Up $9.60.