Closing Gold & Silver Market Report – 6/19/2013
METALS DIP ON FED REPORT; RON PAUL EVALUATES GOLD
Precious Metals prices began to fall today after U.S. Federal Reserve Chairman Ben Bernanke announced the probability of reducing asset purchasing by the end of 2013 and completely ending it in 2014. Bernanke made it clear, however, that how the economy performs will determine how the Fed will proceed, stating, “If you draw the conclusion that I've just said that our purchases will end in the middle of next year, you've drawn the wrong conclusion, because our purchases are tied to what happens in the economy.” The market is still in limbo as investors are aware of the Fed’s fiscal plans, but they’re not certain of the exact timeframe. “We pretty much have a Fed statement and summary of economic projections that leave us believing what we believed yesterday, which is the Fed is going to taper at some point, maybe at the end of this year, maybe in 2014," Lazard Capital Markets’ managing director Art Hogan said.
As quantitative easing has become the norm for the U.S., investors have concluded that the dollar will continue to devalue as more is printed and pushed into the economy. When the dollar becomes less valuable, more is required to purchase an ounce of Gold. Former congressman and presidential candidate Ron Paul has a confident forecast for Gold, saying, “as long as we have excessive spending, and excessive computerized money, we are going to see Gold go up." He added, "Six thousand years of history shows that Gold always retains value and paper always self-destructs."
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,352.50, Down $16.40.
- Silver, $21.45, Down $0.35.
- Platinum, $1,417.50, Down $24.60.
- Palladium, $694.40, Down $13.90.
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