Closing Gold & Silver Market Report – 3/6/2012

Peter LaTona

3/6/2012 4:09:00 PM

STOCKS SEE BIGGEST LOSS OF 2012; GOLD, SILVER START TO RECOVER  

The stock market closed down more than 200 points today, its biggest loss of 2012. As reported throughout the day, the fear of a Greek default is rocking the stock markets and precious metals markets. Stocks are down on fears of what a Greek default might do to the fragile global economic recovery. Gold and Silver prices are down largely because the falling euro has boosted the value of the U.S. dollar.

Legendary money manager Marc Faber, affectionately known as “Dr. Doom,” is advising to buy precious metals. Faber sees the geopolitical risks in the Middle East as ramping up, saying an Israeli strike on Iran is a certainty. Faber told Reuters, “Political risk was high six months ago, and it is higher now. I think sooner or later, the U.S. or Israel will strike Iran.” He continued: “Say war breaks out in the Middle East or anywhere else; Mr. Bernanke will just print even more money -- they have no option. … They haven’t got the money to finance a war.”

At 4 p.m. (CST), the APMEX precious metals prices were:

• Gold - $1,675.90 – Down $28.50.
• Silver - $33.01 – Down $0.72.
• Platinum - $1,617.60 – Down $46.00.
• Palladium - $669.00 – Down $38.00.