Mid-Day Gold & Silver Market Report – 11/1/2011
ALL FOCUS BACK ON GREECE
Precious metals prices have steadied quite a bit since the Morning Gold & Silver Market Report. Yesterday, there was a shift in focus from Greece to Italy. Today, all eyes are back on Greece after Prime Minister George Papandreou called for a referendum vote on the bailout package. Some are now calling for the ousting of Papandreou. The unraveling of MF Global has also rippled through global markets. "Our view is that gold is poised for a move significantly higher as the Greek tragedy has not yet fully played out yet the safe haven role will prevail as the key driver of gold prices as investors seek a lifeboat in a crisis," said Ross Norman of Sharps Pixley.
There is a lot of incredulity surrounding the decision for a referendum vote on measures only agreed upon last week by Greek Prime Minister Papandreou. This decision has led to a cry for his resignation and a number of his party members to resign. Swedish Foreign Minister Carl Bildt said, "It's difficult to see what the referendum is going to be about. Do we want to be saved or not? Is that the question?" Euro zone chairman Jean-Claude Juncker added, "The Greek prime minister has taken this decision without talking it through with his European colleagues.” When pressed on whether a ‘no’ vote would bankrupt Greece, Juncker responded, "I cannot exclude that this would be the case, but it depends on how exactly the question is formulated and on what exactly the Greek people will vote."
The situation at MF Global continues to be a sticky investment-related situation. The issue allegedly surrounds MF’s exposure to European debt not being separated from clients’ accounts. According to Kevin Bell, senior associate general counsel of the Securities Investor Protection Corporation (SIPC), “This is like a mini-Lehman.”
At 12:09 P.M. (CT) the APMEX precious metals spot prices were:
- Gold - $1,710.90 – Down $16.30.
- Silver - $32.89 – Down $1.50.
- Platinum - $1,583.50 – Down $24.10.
- Palladium - $637.00 – Down $16.10.