Mid-Day Gold & Silver Market Report, 7/13/2012
Brandi Brundidge
7/13/2012 12:02:00 PM
GOLD ON SAME LEVEL AS CASH, ANALYST SAYS
Market analyst Ronald Stoeferle at Erste Group recently released a comprehensive report on Gold’s value and a forecast. Stoeferle suggests that the fourth quarter of 2012 could be extremely positive for the yellow metal; he predicts the price will reach $2,300 per ounce. Stoeferle said, “Due to its high liquidity and unique characteristics, Gold is becoming ever more prominent as collateral. Therefore, we are currently seeing the renaissance of Gold in international finance. The foundation for a return to ‘sound money’ has been laid.” He added, “Gold is now officially again ‘as good as Gold’ and ranks on the same level as cash. We expect this decision to have a wide range of implications. For example, the opportunity cost of holding Gold will be reduced massively.”
One American consumer sentiment index fell to its lowest point this year with an unexpected decline to 72 in July, compared with June’s reading of 73.2. Reasons include one of the weakest quarters in corporate hiring in two years and an unbalanced stock market that is attached to the ongoing European debt crisis. Sean Incremona at 4Cast Inc. said, “We could continue to see a fairly mild trend in consumer spending. Employment is the main factor that’s really keeping the consumer underweight at this point.”
At 1:01 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,592.70, Up $25.80.
- Silver, $27.44, Up $0.20.
- Platinum, $1,431.70, Up $19.20.
- Palladium, $587.00, Up $11.20.
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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
