Morning Gold & Silver Market Report – 10/30/2012
Ryan Schwimmer
10/30/2012 8:01:00 AM
SPAIN’S RECESSION CONTINUES; HEDGE FUNDS RETURNING TO PALLADIUM
Precious Metals prices are rising this morning as the U.S. dollar falls, with Silver and Platinum leading the way. Global stocks are up as well due to Hurricane Sandy looking to be less costly than expected. Wall Street is closed for the second day in a row, though electronic trading continues at very low volumes, “which makes today’s gains quite fragile, and the potential impact of the storm for the insurance sector, estimated at around $20 billion, has not been priced in yet,” according to Patrice Perois of Kepler Capital Markets.
The austerity program in Spain to cut the public deficit caused the country’s recession to extend into the third quarter. Spain’s gross domestic product receded by 0.3 percent in the past quarter, marking the fifth straight quarter of contraction. In fact, it is speculated that the only reason the contraction wasn’t larger is because families are making big purchases ahead of a looming tax hike.
Palladium has been the worst-performing Precious Metal this year, falling by 9.3 percent compared to Platinum’s 11 percent gain, but a turnaround may be in store. Jeffrey Sica of SICA Wealth Management said, “Platinum got the South Africa [mining strikes] boost, but Palladium didn’t enjoy that. I do anticipate higher prices because of the global liquidity push. At some point there will be growth revival.” Hedge funds are buying Palladium again in anticipation of potential decade-high prices.
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,714.20, Up $5.00.
- Silver, $32.03, Up $0.27.
- Platinum, $1,548.60, Up $17.20.
- Palladium, $597.40, Up $6.60.
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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
