Mid-Day Gold & Silver Market Report, 6/22/2012
ANALYSTS EXPECT HIGH RETURNS IN 2012 FOR GOLD, SILVER
Silver is in high demand around the globe now, but especially in India as the white metal has regained its luster. The attraction to Silver in India comes from how the metal is perceived. It is looked at as bringing good luck and prosperity along with being more affordable for some. “People’s appetite for investing in the white metal has skyrocketed lately, with most consumers coming in and picking up Silver coins in double digits,” said Sonamull Shah, bullion trader in India. Analysts believe the return for Silver in 2012 will be about 6 percent, when last year the return was negative. Gold is expected to have a 20 percent return this year compared to a 10 percent return in 2011.
After the Federal Reserve announced further stimulus might be possible in the future, many have speculated what would have to occur for it to happen. St. Louis Federal Bank President James Bullard said, “QE3 I think is viewed as still having a pretty high hurdle. We can do that, and I think it would be effective. But we would be taking a lot more risk on our balance sheet, and we’d be going further into unchartered territory.” The Fed already has bought an estimated $2 trillion in assets in two rounds of quantitative easing programs to assist with America’s financial crisis.
To restore Europe’s economy, Germany, France, Italy and Spain’s leaders came to agreement today on a 130 billion euro package to offer joint bonds and to handle the eurozone debt crisis. Italian Prime Minister Mario Monti said, “Growth can only have solid roots if there is fiscal discipline, but fiscal discipline can be maintained only if there is growth and job creation.” German Chancellor Angela Merkel approved the development package, although there was nothing stated about past or future eurozone debt borrowing.
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,567.60, Up $1.60.
- Silver, $26.80, Down $0.15.
- Platinum, $1,436.00, Down $4.60.
- Palladium, $608.50, Down $1.10.
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