by
Stephanie Chandler
September 20, 2011
IMF GIVES NOT SO NICE GLOBAL OUTLOOK; CENTRAL BANKS BUY UP GOLD
Precious metals have done well today on the news of the negative global outlook that the International Monetary Fund (IMF) released, as well as Italy’s credit downgrade, and the lowest housing numbers since April.
The IMF report stated that the global outlook for economic growth was for a “weak and bumpy expansion,” with which equates to a cutback to 1.5% from 1.8% and Europe being cut to 4% from 4.5%. The IMF’s Chief Economist, Olivier Blanchard, commented on the negative global outlook, “There is a wide perception that policymakers are one step behind markets…Europe must get its act together.” The IMF also forewarned the U.S. that hasty budget cuts could further weaken growth and added that the U.S. Federal Reserve should be ready to offer to further ease monetary policy.
This year alone, central banks are predicted to buy more gold than any other time since the collapse of the Bretton Woods system over 40 years ago. Director of Precious Metals Sales at Barclays Capital, Jonathan Spall, told FT.com in an interview, “We’re going back to a time when gold is seen very much as money.”
Check out the world’s biggest debtor nations. It might surprise you.
At 3:50 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,804.70 – Up $26.30.
- Silver - $39.83 – Up $0.65.
- Platinum - $1,784.30 – Up $9.30.
- Palladium - $716.80– Up $3.70.
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