Morning Gold & Silver Market Report – 2/22/2013
ANALYST PREDICTS ‘SILVER WILL HAVE A SPECTACULAR RISE’
Gold and Silver prices gave up early gains this morning ahead of today’s panel discussion with Federal Reserve officials set for 10:15 a.m. It is expected that the discussion will focus on how the dissent between politicians over fiscal policy is keeping the Fed from getting the economy on more solid footing. Minutes from the latest Fed meeting revealed some disagreement between Fed officials over the exit strategy for the latest round of quantitative easing (QE3). In the past, monetary stimulus measures have been bullish for Precious Metals prices.
Though the Silver price has fallen approximately 9 percent in February, analysts are not turning their backs on the metal. One analyst explained that China’s Lunar New Year celebrations last week came at an inopportune time, leaving the Silver price open to the volatility of technical trading, but he expects a snapback that will be just as surprising as this month’s dip. The Silver Institute said in a report that China’s investment demand for Silver will grow robustly as access to the metal improves. Gijsbert Groenewegen of Silver Arrow Capital Management added, “The Chinese have to hedge themselves against the continuous debasement [of their U.S. dollar reserves and] the opposite of the U.S. dollar is Gold and Silver.” Paul Mladjenovic, author of Precious Metals Investing for Dummies, said, “[The] massive shorting in the futures market is warping supply and demand and at some point, the shorting will fail and Silver will have a spectacular rise.”
At 9:22 a.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,574.50, Down $5.60.
- Silver, $28.62, Down $0.15.
- Platinum, $1,610.90, Down $10.10.
- Palladium, $732.60, Down $2.00.
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