Mid–Day Gold & Silver Market Report – 1/18/2012
GREECE, CREDITORS MAKE LAST-DITCH EFFORT
Last week, Greek officials met with creditors to determine interest rates it will pay on new bonds and to agree on a plan for investor losses. Talks broke down, but they have resumed today with two points of contention still on the table. Greece needs a deal with these private investors to avoid a painful default. And Greece must get more money from foreign lenders, but it is clear no more money will be forthcoming until the current bond-swap issue is resolved. Most sources close to the action will only say that a deal must get done no later than early next week. There is fear that a disorderly Greek default could trip the global economy into a recession.
The World Bank is cutting forecasts for global economic growth expectations. This comes at a time when many countries (especially in the eurozone) are deeply in debt, so this is not good news. Ways to get out of debt include cutting expenses or increasing revenues. If this forecast is accurate and revenues decline even more, then expenses must be cut. The World Bank is warning that as this affects the eurozone in particular, it might cause a global recession similar to that of 2008-09.
Silver prices have been steadily rising all morning, while the Gold price has fluctuated between positive and negative territory.
At noon (CST), the APMEX precious metals spot prices were:
- Gold - $1,661.40 – Up $4.40.
- Silver – $30.58 – Up $0.37.
- Platinum - $1,526.20 – Down $1.50.
- Palladium - $670.70 – Up $14.20.