Midday Gold & Silver Market Report – 11/4/2011
ITALY REFUSES SUPPORT, STEPS BACK INTO THE NEWS
Precious metals prices have trended downward since the Morning Gold & Silver Market Report. This is primarily due to the rise in value of the dollar and the continuing European debt crisis. With all the concern in Europe, some analysts, including Michael Lewis of Deutsche Bank, believe that "gold would benefit from the idea of a euro zone break-up. We don't think this is going to happen, but it's certainly not a zero-probability event.”
Although the call for a referendum vote may have been called off, a confidence vote on Greek Prime Minister George Papandreou was called as part of the original referendum plan, and that will go on as scheduled. Papandreou’s reign is in serious jeopardy, which has the entire bailout in jeopardy. Greek citizens are outraged over the perception that they are a country needing the handout and bailout. According to Panayiotis Theofilas, a father and local shop owner in Athens, "Papandreou may get the 151 votes he needs tonight. But what does this mean for us? This instability is killing us. … Yesterday I spent all day in front of the TV, worrying. I couldn't work. What if they throw us out of the euro? We are finished." This view was supported by other citizens including shop assistant Efi Peroyannaki, who said, "The referendum was the worst idea Papandreou ever had. He turned the whole world upside down, and now he wants a vote of confidence? How dare he? We are all very angry with him. …What happened this week was a disgrace. We looked bad, and the Europeans are already sick of paying for us."
Italy has stepped back into the spotlight, as Prime Minister Silvio Berlusconi refused to step down amid abandonment of some of his party’s members. He turned down International Monetary Fund (IMF) funding. The head of the opposing party to Berlusconi, Pier Ferdinando Casini, had a very telling comment. "Unpopular prescriptions are necessary, and this challenge cannot be faced with a 51 percent government,” he said. Reforms are needed- and could only be passed with a broad consensus. Some are calling for a confidence vote on Berlusconi. He barely escaped the last confidence vote, so the results of another vote may not be as favorable.
At 12:19 p.m. (CT), the APMEX precious metals spot prices were:
- Gold - $1,757.40 – Down $9.70.
- Silver - $34.15 – Down $0.39.
- Platinum - $1,635.70 – Down $11.30.
- Palladium - $659.50 – Down $4.60.