Mid-Day Gold & Silver Market Report – 9/26/2011
Volatility is the Word for the Day! – Gold and silver prices have been moving in wide swings all morning, while continuing to trend down. Both gold and silver have traded in positive territory, but have since given up gains. Price movements have been dramatic. As dramatic as gold prices have been of late, an article by Jan Harvey in Reuter’s today points out that gold has been here before and rebounded. The author draws an analogy to the Lehman fall in 2008. Gold prices collapsed during the fall, but soon rebounded, unlike the equity markets.
Although many hedge funds have been forced to sell positions in high performing assets, such as gold, not all hedge funds are selling their gold. Many hedge funds still view gold as one of the best bets they can make in an uncertain and unstable global economy. Despite the sell-off, gold is up 7 percent since July and 14% for the year. According to Coast Sullenger, Managing Director at Gaia Capital, “Gold equities is one of the only sectors that has been performing," he told Reuters. "If the sell-off continues, it will probably create more of a buying opportunity... Gold shares are trading at a very, very low valuation, vis-a-vis their own history."We're of the opinion that gold shares are an asset class you should be overweight."
At 12PM (CT) the APMEX precious metals prices were:
· Gold price – $1,600.00 - down $39.80
· Silver price –$30.07 – down 5 cents
· Platinum price – $1,551.90 – down $64.30
· Palladium price - $628.80 – down $14.70