Mid Day Gold & Silver Market Report – 11/10/2011
ITALIAN CRISIS SPURS BREAK-UP FEARS; JOBLESS CLAIMS AND TRADE DEFICIT FIGURES RELEASED
Economic worries in the euro zone continue to hold the financial world’s attention, with worries that the zone might break-up developing as a result of ongoing uncertainty in Italy, both economic and political. Borrowing costs for Italy, which has the third largest economy in Europe, have reached levels widely seen as unsustainable, and beyond the ability of the countries in the euro zone to bailout. With Italian Prime Minister Silvio Berlusconi announcing his intention to resign soon, Mario Monti, a former European Commissioner, looks likely to replace him. If he does, he will lead an emergency government and implementing reforms of business regulation, labor markets, and pensions in Italy. Meanwhile, in Greece, Vice President Lucas Papademos has been tasked with a similar responsibility, leading an interim “crisis cabinet” with a mission of preventing and kind of default or bankruptcy in Greece. In the face of fears of a euro zone break-up, German Chancellor Angela Merkel rejected the possibility of the currency area shrinking in any way, stating, “We only have one goal, that is to bring about a stabilization of the euro zone in its current form.” However, despite Merkel’s assurances, officials in the European Union are widely seen as dithering on any serious efforts to solve Europe’s ongoing sovereign debt problems, and policymakers at the European Central Bank have so far resisted pressure from both foreign governments and investors to protect Italy (and Spain) from the possibility of financial contagion by offering financial assistance.
Alabama’s most populous county filed for bankruptcy making it the largest municipal bankruptcy filing in the U.S. to date. Alabama’s Jefferson County has experienced a massive revenue shortfall that has left them with a staggering debt of $4.15 billion dollars. Jefferson County’s problems did not arise overnight,according to Commissioner Jimmie Stephens, who filed the motion for bankruptcy, “Jefferson County has, in effect, been in bankruptcy for three years.”
At 12:08 PM (CST), the APMEX precious metals spot prices were:
· Gold - $1,756.90 - Down $36.70.
· Silver - $33.98 - Down $0.42.
· Platinum - $1,624.60 - Down $19.10.
Palladium - $650.90 - Down $6.00.