Mid-Day Gold & Silver Market Report – 3/18/2013
Ted Prince
3/18/2013 12:00:00 PM
CONCERNS OVER CYPRUS TAX CAUSES GOLD BOOST
Concerns over the European debt crisis intensified Monday due to a tax charged upon Cypriot bank deposits in an effort to bailout the struggling nation. Significant anxiety is permeating markets today following the news from Europe causing downward pressure to the Dow Jones and S&P 500. However, fear has pushed investors to seek out safer assets today, directly benefiting Gold in the process. As equities markets remain relatively sturdy amid a mass of potentially harmful global political factors, some investors are curious if the current market rally can continue. “The fear I have is that if this psychology of wanting to push the market higher changes, then we’ll see a pretty sharp pullback and a spike in volatility,” said Frank Braddock, senior portfolio manager with the Braddock Group of JHS Capital Advisors.
Gold has been driven above $1,600 as the “Cyprus Tax” levy on bank deposits sent a shockwave through financial markets and caused investors to flee to the yellow metal. “With the euro-zone sovereign debt crisis far from over, we are in ‘extreme times’,” said Julian Phillips, contributor to and founder of GoldForecaster.com. Gold could greatly benefit from bailout efforts in Cyprus. As a tax is being levied on bank deposits in that nation, the fear that private savings accounts are no longer safe could cause many to flock to a more tangible store of wealth such as Precious Metals. As a result of bailout measures, Analysts at Commerzbank stated that, “We therefore expect to see prices continuing to rise.”
At 1:00 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,608.20, Up $13.10.
- Silver, $28.94, Up $0.02.
- Platinum, $1,583.60, Down $10.80.
- Palladium, $764.40, Down $10.30.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 7 p.m. (CDT)! Or call us Fridays until 5 p.m. (CDT)! 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.
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
