Closing Gold & Silver Market Report – 11/4/2011
GOLD OUTPERFORMS OTHER METALS, IS INSURANCE AGAINST EUROPEAN ‘TIME BOMB’
Precious metals have been fairly flat today as the news stays the same in Europe and the U.S. Metals gained slightly after the European Central Bank announced it was cutting its rates by a quarter-point. This makes the U.S. dollar stronger, which traditionally supports gold prices. U.S. stocks closed lower today as there was little comfort from the Group of 20 meeting. Investors are still concerned about Greece.
Despite the volatility of gold since September, it has still outperformed the other precious metals in the long run, according to financial managers. Poh Huay Imm of Deutsche Bank Private Wealth Management, explains, “The spot price has almost tripled in the last five years. Also, the performance of gold since the end of June and the beginning of September this year marked the strongest quarterly gain in spot prices since the early 1980s.”
Many wealth management experts noted they would recommend anywhere from 5%- 10% of an investment portfolio in gold. Mark Matthews, Head of Research Asia at Bank Julius Baer, says, “Gold is a good insurance against the “time bomb” in Europe and further debasing of currencies by central banks globally.” Dominic Schnider of UBS Wealth Management adds that gold is for the long term, as “gold is more than a commodity; it is a currency.”
At 3:53 p.m. (CT), the APMEX precious metals spot prices were:
- Gold - $1,758.10 – Down $9.00.
- Silver - $34.16 – Down $0.38.
- Platinum - $1,636.40 – Down $10.60.
- Palladium - $659.60 – Down $4.50.