Mid-Day Gold & Silver Market Report – 9/13/2011
MERKEL REJECTS CALLS FOR GREEK INSOLVENCY; ANOTHER DEBT VOTE?
Between the Morning Gold & Silver Market Report and now, prices on gold, silver, platinum, and palladium have all inched up slightly. After yesterday’s losses on gold futures, today the precious metal has seen a 0.4% increase since this morning, with silver increasing 0.8%.
In a response to calls by some members of her own coalition to allow Greece to default and leave the Euro Zone, German Chancellor Angela Merkel is pushing back. In an interview on German radio, Chancellor Merkel warned against the negative effects an “uncontrolled insolvency” would have on markets. She also stated that the appropriate steps are being taken by Greece with regards to receiving its next bailout, and cautioned against possible debt contagion if a Greek default were allowed. “The top priority is to avoid an uncontrolled insolvency, because that wouldn’t just hit Greece and the danger that it hits everyone, or at least a number of other countries, is very big,” said Merkel, adding, “I have made my position very clear: that everything must be done to keep the euro area together politically, because we would very quickly face a domino effect.”
Concern is growing that the job plan proposed by President Obama last week could lead to another showdown with Congress over increasing the debt limit. The President’s job plan, if implemented quickly as many feel it would need to be to be effective, would lead to $447 billion in additional spending before the November 2012 election. This would cause the deficit to go over the amount agreed upon back in August of this year. According to Robert Bixby, the Concord Coalition’s executive director, “The irony of all this is that...they may have to confront it (raising the debt limit) again soon because the deficit might be a great deal higher than we were anticipating.”
At 12:15 PM (CT), the APMEX precious metals spot prices were:
· Gold - $1,830.10 - Up $14.80
· Silver - $41.20 - Up $0.91
· Platinum - $1,814.10 – Up $3.70
· Palladium - $728.60 - Up $17.30