Closing Gold & Silver Market Report, 6/15/2012
SUNDAY SHOULD BE A DAY TO REMEMBER
No, this is not referring to Sunday night’s NBA Finals Game 3 between the Miami Heat and the Oklahoma City Thunder. It’s about the Greek election, which could prove to be one of the most important economic events in the world this year. For a small country, Greece is going to have a major effect on the global economy.
Why is the outcome of this election so important? It will tell the world whether Greece intends to pay its debts and stay in the eurozone, or go its own way. Here is the dilemma in a nutshell: Greece is running out of money and may not be able to pay its bills by the end of this month, which is why it needs another bailout. Greece probably will not get another bailout without agreeing to austerity measures. Many Greek citizens do not support austerity measures, and Greece cannot agree to anything without a majority coalition government, which it does not have. If Greece again cannot form a majority coalition, then another election will be called, but Greece would run out of money before that could happen.
The best outcome for the markets is if the New Democracy party wins. That party’s candidate supports austerity and staying with the euro. A win would bolster the euro against the American dollar, which could boost equity markets as well as Precious Metals.
The bad for markets outcome would be a win by the Syriza party. It is expected its leader will not accept austerity measures. This could set markets into a potential roller coaster as the Syriza regime would be playing high stakes poker with Germany and the International Monetary Fund.
Stay tuned! There’s a big game Sunday!
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,628.30, up $8.70.
- Silver, $28.79, up $0.29.
- Platinum, $1,484.00, down $5.60.
- Palladium, $627.40, down $8.50.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.