Mid-Day Gold & Silver Market Report – 11/30/11
GOLD BUG HITS INVESTORS
The Gold price has held steady since the Morning Gold & Silver Market Report. Analysts have made numerous predictions as to how Gold will perform in the future. In a CNBC interview, Jim Rogers, chairman at Rogers Holding, said, “I would suspect Gold will go much higher within the decade. Paper money everywhere is being debased. If the U.S. dollar turns into confetti, there is no high for the price of Gold, because the dollar will become worthless.” Precious metals strategist Anne-Laure Tremblay, at BNP Paribas, acknowledged the demand and price increase for Gold in a monthly Gold review, saying, “Despite price volatility, physical demand for Gold has been very strong in recent months (and) further sharp moves in the price are likely over the next months given the high level of uncertainty, particularly relating to eurozone issues.”
Today, the world’s major central banks reached agreement to provide liquidity assistance to the global financial system. Many do not realize Europe’s sovereign debt crisis is hitting a two-year mark and suddenly investors and banks are exiting from the eurozone bond market and government debt, respectively, in fear of the very survival of the euro as a single currency. Rapidly worsening conditions have prompted European finance ministers to look for assistance from the International Monetary Fund. France’s central bank Gov. Christian Noyer, speaking recently at a Singapore conference, said, “We are now looking at a true financial crisis — that is, a broad-based disruption in financial markets.”
With the coordinated action of the world’s central banks and a potential “Santa rally” in the U.S. economy, the only outlook that might seem to affect domestic markets is any overly negative developments in Europe. Alan Valdes, director of floor operations and vice president of trading at DME Securities, said, “The markets rallied with the news. But if you stop and think about it, you have to realize what kind of danger the world is in for all the central banks to get together and save Europe.”
At noon (CST), the APMEX precious metals spot prices were:
- Gold - $1,746.60 – Up $29.70.
- Silver - $32.95 – Up $1.01.
- Platinum - $1,560.60 – Up $18.90.
- Palladium - $612.30 – Up $28.10.