Morning Gold & Silver Market Report, 7/10/2012

Ryan Schwimmer

7/10/2012 8:00:00 AM

1.3 BILLION IN CHINA HAVE LITTLE CHOICE BUT GOLD  

China continues to be the “most important player on the global Gold market,” according to Commerzbank AG. The World Gold Council predicts that China will increase its Gold holdings by 13 percent this year. What makes Gold so attractive to the Chinese market? Albert Chang, managing director at Far East, said, “We are still optimistic on China’s Gold investment demand, as investors here don’t have much choice in terms of investing their wealth.” When it comes to retirement planning, 1.3 billion Chinese citizens don’t have many other options, so they turn to Gold.

American stock futures are pointing to a higher open for Wall Street this morning, and Gold is following suit. Silver, Platinum, and Palladium are all trading mostly flat. Stock markets in the United States will mainly be influenced by the upcoming earnings season in the near future. However, just as China is a major player in the Gold market, so it is a major player in the stock markets. Recent economic data out of China have been less-than-impressive, putting a strain on global stocks.

Carl Weinberg, founder of High Frequency Economics, said that European Union governments have “failed to stabilize every challenge they have been given so far in the (European debt) crisis.” He said, “We are ready to throw in the towel. No one can believe that no bank (in the eurozone) will fail. … All the banks in Greece, pretty much, are insolvent. … Italy’s banks have problems, too … (and) are next to come under the gun.”

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,602.70, Up $12.10.
• Silver, $27.57, Up $0.06.
• Platinum, $1,452.00, Up $6.10.
• Palladium, $586.10, Up $1.30.

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.