Mid-Day Gold & Silver Report, 5/23/2012

Brandi Brundidge

5/23/2012 12:05:00 PM

NEW IDEA PROPOSES GREEK CURRENCY; IS GOLD OVERREACTING?  

Gold’s price drop has been well documented during the past few weeks. Many factors have led to the shift in price. However, in the view of many investors, this is an opportunity, based on a closer look at the numbers. CNBC contributor Dennis Gartman said, “The public is massively bearish, and that tells me it’s time to be bullish.” He added, “Most people don’t think Gold and stocks can go higher together, but I expect to see them trade dramatically higher over the course of the next several months. The trend is now higher.”

News from the World Bank could be a negative sign for the Asian region as a whole. Reports show that growth in the region has slowed from 10 percent in 2010 to 7.6 percent this year. The main culprit is China, where the slowdown has had the largest effect. However, the reported growth rates are much stronger than the growth rate in the United States, where the economy grew only 1.7 percent last year.

Germany has come up with a new idea to put an end to the financial disaster that is Greece. The plan would call for Greece to stay in the European Union but adopt its own currency, the “Geuro.” This idea has many positives. First, it would give Greece a chance to balance its budget without support from lenders. It would also allow Greece to reject the austerity program that it has opposed from the start. Speaking about a possible separate currency for Greece, Thomas Mayer of Deutsche Bank said, “Initially we would expect a large depreciation, but the Greek authorities would have the power to stabilize or even strengthen the exchange rate of the Geuro against the euro, via prudent fiscal policy and structural reform, so as to keep the door open to a future return to the euro.”

At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1545.30,Down $32.80.
• Silver, $27.42, Down $0.85.
• Platinum, $1415.90, Down $44.50.
• Palladium, $593.20, Down $24.40.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in precious metals or simply would prefer to place your order by telephone, we are here to help.