Mid-Day Gold & Silver Market Report – 11/9/2011
IMF CHIEF WARNS OF ANOTHER LOST DECADE; GREEK PM RESIGNS
Gold and silver prices have slipped somewhat since the morning commentary. Stock markets have also fallen sharply as worries about Italy becoming the next Greece abound.
Greek Prime Minister George Papandreou will hand in his resignation today. No official word has been released as to who will succeed him, but sources indicate it will be the current speaker of the Greek parliament, Filippos Petsalnikos. In a televised address, Papandreou said, "I am proud that, despite the difficulties, we avoided bankruptcy and ensured the country stayed on its feet." No matter who the new prime minister will be, they are bound to be faced with difficult and unpopular decisions about how best to handle the ailing country’s economic woes.
Christine Lagarde, managing director of the International Monetary Fund, said today in a speech in Beijing, “If we do not act, and act together, we could enter a downward spiral of uncertainty, financial instability, and a collapse in global demand. Ultimately, we could face a lost decade of low growth and high unemployment.” Her speech comes at the same time that European leaders are appealing to the Chinese government for aid in shoring up debt-ridden nations in the euro zone. The remarks of a “lost decade” are a reference to Japan’s economic problems of the 1990’s, in which it battled deflation, mounting debt, and painfully slow economic growth. The origins of Japan’s lost decade are eerily similar to what the world faces today: massive debt and a bursting real estate bubble.
At 12:07 p.m. (CST), the APMEX precious metal prices were:
- Gold price - $1,793.60 – down $7.60.
- Silver price – 34.89 – down $0.64.
- Platinum price - $1,643.80 – down $29.30.
- Palladium price - $656.80 - down $22.50.