Closing Gold & Silver Market Report, 7/13/2012
MERRILL LYNCH PREDICTS $2,000 GOLD BY YEAR’S END
The Gold price rose sharply today in conjunction with a buoyant equity market. So, what is next? Federal Reserve Chairman Ben Bernanke is expected to speak next week, and a great deal of speculation exists on whether he will drop hints of an upcoming QE3. There is a strong contingent that says QE3 is coming, and this probably factored into Friday’s large market gains. Merrill Lynch threw its name into this hat Wednesday, when it predicted the Gold price would soar to $2,000 by year’s end. Francisco Blanch, head of Global Commodity and Multi-Asset Strategy for Merrill Lynch, expects that the Federal Reserve will initiate an asset purchasing program of up to $500 billion in the last half of 2012. If this occurs, he predicts it will drive Gold prices to the $2,000 per ounce level.
Whoops! JP Morgan announced today that its recent bad trade that was thought to be in the $2 billion dollar range has almost tripled to $5.8 billion in losses. The founder of Peregrine Financial Group, Russell Wasendorf, admits to having forged bank statements for more than 20 years. No wonder there are skeptics when it comes to financial institutions. Where do you keep your money? In a recent broadcast of “Mad Money,” host Jim Cramer was asked by one of his viewers his thoughts on Gold. Cramer declared that you have to consider Gold as a currency and not a commodity, and he recommended a 10 to 20 percent portfolio allocation. Seeing Gold as a currency and not a commodity seems to be gaining traction in the financial community. Have a great weekend!
At 5 p.m. (EDT), the APMEX Precious Metals prices were:
- Gold, $1,590.30, Up $23.50.
- Silver, $27.36, Up $0.12.
- Platinum, $1,432.90, Up $20.40.
- Palladium, $587.00, Up $11.20.
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