Morning Gold & Silver Market Report – 9/27/2011
STOCKS, METALS RALLY; U.S. IN MORE TROUBLE THAN EUROPE?
U.S. stock futures are signaling a continuing rally for stocks today, as investors are banking on hopes that eurozone officials will be able to get Greece back on track and rein in the sovereign debt crisis that is threatening the European region. Gold is up sharply on the hopes as well, as a reduced liquidity push has “[taken] the pressure off the precious metals,” as James Moore of TheBullionDesk.com explains. Gold closed yesterday at its lowest level since late July after a few days of heavy selling as big-money investors tried to make up for heavy losses they were taking in stocks.
All eyes are on Europe today as German Chancellor Angela Merkel is scheduled to meet with Greek Prime Minister George Papandrou to discuss Greece’s efforts in cutting its deficit. The basis in the hopes that are spurring the market’s rally comes from signs that eurozone officials are finally taking action, as they are reportedly trying to recapitalize banks and bolster the European Financial Stability Facility (EFSF). “Without a doubt the main focus is Europe and whether Greece can get back on track with its austerity plan and pass the proposed property tax through parliament and also the EU members vote on the EFSF proposed changes,” said Jordan Lambert of Spreadex Ltd.
Though all eyes may be on Europe, esteemed investor Jim Rogers believes that the U.S. has bigger problems than Europe when viewed from a different, proper perspective. If looking at Europe like one big country, and the countries like states, his point becomes clear. He explains: “Europe has a few bad, bankrupt states, so does America. We’ve got Illinois, which is bigger than Greece. We’ve got California, we’ve got New York, you know those are pretty big states that have serious economic problems … Europe’s got some bad problems but the entity as a whole is not nearly as deep in debt as the U.S.”
At 8:00 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,659.20 – Up $63.50.
- Silver - $32.73 – Up $2.72.
- Platinum - $1,576.90 – Up $27.00.
- Palladium - $651.60 – Up $22.30.