Mid-Day Gold & Silver Market Report – 11/18/2011
WILL THIS BE THE LOST DECADE OF EUROPE?
Precious metals are steady so far today on conflicting news of global and local economies. The stepping in of the European Central Bank to buy Italian and Spanish debt went a long way to ease fears of further recession and stocks both in Europe and the U.S. were up slightly on the news. It also helped boost confidence in the markets, as data was released by the Conference Board today stating the index of leading economic indicators was up by 0.9% in October, the largest increase since February. Ken Goldstein, a Conference Board economist, says this number “is pointing to continued growth this winter, possibly even gaining a little momentum by spring,” adding that low consumer confidence is a major driving force to preventing positive momentum. Millan Mulrain, TD Securities’ economics strategist, gave a more realistic interpretation, “… the economy remains vulnerable to mis-steps in Europe and Washington.”
Bill Gross, manager of the world’s largest mutual fund, feels that the U.S. is still at risk to the European crisis. He adds that it has become increasingly difficult for investors around the world to find safe haven investments, “Investors are basically fleeing what were previously safe havens. [It’s] certainly a moment of 2011 which is significant.” James Shugg, senior economist at Westpac, gives his opinion on the future of Europe, “These reforms are going to be devastatingly impacting on the population in these countries. We are looking as a decade of lost living standards across most of Europe… There is no easy solution to this, it will be hugely painful.” Will the European Central Bank just end up printing more money?
On a side note, who are the mystery buyers of gold this quarter?
At 12 p.m. (CST), the APMEX precious metals prices were:
- Gold price - $1,720.70 – Down $1.50.
- Silver price - $32.06 – Up $0.53.
- Platinum price - $1,590.50 – Up $9.40.
- Palladium price - $609.00 – Up $3.30.