Mid-Day Gold & Silver Market Report – 3/25/2011
At 12PM (CT) the APMEX precious metal prices were:
- Gold price- $1,426.20
- Silver price - $37.06
- Platinum price - $1,748.60
- Palladium price - $751.00
COMMENTARY: Gold and silver prices are bouncing back and forth this morning as those who are buying gold as a safe haven drive prices up and profit takers take prices lower. Next week could bring even more volatility as the CME announced yesterday that they are raising the amount to buy or short a 5000-ounce silver contract to 5.4%.
Costs for gold mining companies have risen dramatically over the past ten years, and there is no signs this will stop anytime soon.Mining companies are experiencing stronger cash flows and good profits, but cost are rising from $600 per oz to as much as $1000 per oz in some cases. This could begin to effect capital spending and thus the overall gold supply. Miners are also being hurt by the decline in the US dollar relative to Canadian dollar, Australian dollar, Chilean peso and Mexican peso. Sales for most miners are in US dollars, so as the dollar depreciates, so does their profits.
What do George Soros and John Paulson know that we should know? These two gentleman are two of five very powerful players in the global investment markets. At the end of 2010, both of these gentleman had long positions in gold as part of their major holdings.
Gold spot price is down $9.70 – Silver price is down 40 cents – Platinum spot price is down $13.40 – Palladium price is down $2.30