Mid-Day Gold & Silver Market Report – 11/15/2011
FED CONSIDERS DOWNSIZING BANKS ‘TOO BIG TO FAIL’
Precious metals prices have gained since early morning trading. News from the International Monetary Fund indicated that China’s growth will start to gradually slow. IMG Deputy Director Min Zhu said, “All the data says that China is moving to a soft landing.”
John Paulson, the hedge fund manager known for being consistently bullish on gold, has sold some shares of his gold exchange traded funds (ETFs) but said he still remains bullish on the metal. He admits to relying on gold as a way to hedge against his currency exposure. Paulson’s dollar investments have taken a hit during this uncertainty, and the gold investments have done well to protect and help cushion the blow to his portfolio.
Worries have arisen of a Lehman Brothers repeat, and federal regulators are considering “radical surgery” to downsize banks that are considered “too big to fail” in hopes they could be better managed and regulated across borders. Richard Fisher, president of the Dallas Federal Reserve Bank, said today in a speech that these banks are “too dangerous to permit” and that he thinks it prudent and beneficial to break up these banks into smaller, more manageable sizes.
At noon (CST), the APMEX precious metals spot prices were:
- Gold - $1,785.10 – Up $4.70.
- Silver - $34.63 – Up $0.57.
- Platinum - $1,642.60 – Down $1.50.
- Palladium - $671.10 – Up $4.80.