Mid-Day Gold & Silver Market Report – 9/21/2012
SPAIN SEEKING REFORM; EXPERTS TOUT GOLD
U.S. stocks rose today due in part to reports that Spanish Economy Minister Luis de Guindos is finally seeking bailout arrangements from the European Central Bank (ECB). Spain will have to agree to conditions set forth by the ECB in order to receive a portion of the $130 billion that has been allocated in an effort to rescue the region’s economy. A hold on pensions and planned increase in retirement age are also being considered along with the stimulus to tackle a large public deficit and enormous debt.
The recent onslaught of central bank spending and risk of hyperinflation has lead to an increase in investors who are turning to Gold. “Gold has historically been considered to be a store of value and an inflation hedge and increasingly it is being utilized as a monetary instrument,” said Mark Smallwood, head of Asia-Pacific wealth-management solutions. “There is a growing interest among our clients to gain exposure.” Renowned hedge fund manager and founder of Bridgewater Associates Ray Dalio told CNBC today that Gold “should be a part of everybody’s portfolio to some degree, because it diversifies the portfolio. It is the alternative money.” The latest round of bond-buying announced by the Federal Reserve has caused Bank of America to predict gold costs of $2,400 by the end of 2014 and Deutsche Bank to forecast gold breaching $2,000 during the first half of 2013.
At 1 pm (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,778.50, Up $9.30.
- Silver, $34.75, Up $0.06.
- Platinum, $1,637.90, Up $13.00.
- Palladium, $671.40, Up $13.30.
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