Closing Gold & Silver Market Report – 1/23/2012
GOLD MAKES ITS MARK AS SAFE-HAVEN INVESTMENT
Precious metals prices have stayed relatively steady in afternoon trading. Greece is facing more negative news, as it appears that country will not receive any more bailout help than is already planned because bondholders have made the “maximum offer” on the losses that they are able to withstand. Despite this news, the euro still made gains on the day against the dollar, giving Gold a slight boost.
Gold has been considered a safe haven for many years by investors who allocate parts of their portfolio so they are minimally affected by any losses occurring in a certain class. But lately, Gold has been a bit more volatile, as many of the world’s news events have caused conflicting reactions, pulling Gold in different directions along with various events. Edel Tully of UBS.com, a financial and banking company, explained how Gold’s volatility may be falling away as it reclaims its safe-haven appeal. “Gold’s correlation with equities remains flat near two-month lows. Should this trend continue, and eventually lead to a collapse of Gold’s highly positive correlation with risk, this would put the yellow metal on better footing to weather challenging macroeconomic conditions and overcome the threat of a stronger dollar.” Tully explained that 2011 has been one of the best in Gold’s history, and indictors are strong that Chinese buying will continue to be strong.
In these uncertain times when conflicting events keep pulling precious metals to and fro, some wonder if it is a good time to get into, or back into, the precious metals market. There are many benefits of Gold, and Jeff Nielson with The Street has summarized many benefits that are sometimes overlooked.
At 3:58 (CST), the APMEX precious metals spot prices were:
- Gold - $1,679.00 – Up $13.50.
- Silver - $32.41 – Up $0.66.
- Platinum - $1,566.00 – Up $32.70.
- Palladium - $689.80 – Up $13.10.