Closing Gold & Silver Market Report – 7/8/2011
METAL MARKETS BOOM ON SAFE HAVEN BUYING – The horrible jobs data released today broke a long winning streak in stocks and caused many investors to flee to safe haven assets like gold. Most investors look at long term price movements when buying physical metals, however today’s chart clearly shows the safe haven buying; when the report was released (7:30 ET) there was a dramatic spike in gold prices. The moment that investor’s confidence was shaken, gold shot up nearly $20 per ounce.
Yesterday’s surprisingly positive jobs data sharply contrasts with today’s numbers. The difference is in what jobs are actually counted. Yesterday’s numbers were private sector jobs, while today’s nonfarm payroll data included both private and public sectors. The cuts to government budgets at federal, state, and local levels are clearly having an impact on the employment situation in the U.S., according U.S. News & World Report.
Despite the bad news today, famed billionaire investor Warren Buffet has placed large bets against a double dip recession. “How fast the recovery will come, I don’t know. I see nothing that indicates any kind of a double dip,” Buffet told Bloomberg News. Buffet went on to say that the key to recovery of the jobs markets is residential construction. “We will come back big time on employment when residential construction comes back.”
Gold is a traditional safe-haven investment, used by many professionals to create a truly balanced portfolio.
At 4:15 pm (CT) the APMEX precious metals spot prices were:
- Gold – $1,545.60 – Up $14.00 on the day.
- Silver - $36.75 – Up $0.15.
- Platinum - $1,739.20– Down $3.80.
- Palladium - $781.90 – Down $6.70.