Mid – Day Gold & Silver Market Report – 1/4/2011
At 12PM (CT) the APMEX precious metal prices were:
- Gold price - $1,379.40
- Silver price - $29.58
- Platinum price - $1,747.90
- Palladium price - $772.80
COMMENTARY: Gold spot price is down $26.10 – Silver price is down $1.03 – Platinum price is down $26.90 – Palladium spot price is down $16.20
Commodities have declined sharply from their December rally. The new year has started off with lots of enthusiasm for equities. The appetite for risk has increased dramatically, so there is movement away from safe haven investments like gold. Most experts predict strong gains in the S&P for 2011, although many experts also predict large drops right away or toward the end of the year. Each investor needs a world view. If you see the same risks that drove precious metal prices up as no longer possible, then certainly you would be willing to take on more risk. However, asset allocation is risk management, so you should consider always have a portion of your assets in gold. You need insurance against the unforeseen negative events, that will occur from time to time.
Have the risks that drove precious metal prices up (economic uncertainty, European debt crisis, fragile financial systems or geopolitical tension) gone away?