Mid-Day Gold & Silver Market Report – 6/3/2014

Peter LaTona

6/3/2014 11:58:00 AM

GOLD CHEAPEST VS STOCKS SINCE JANUARY 2008

Gold is up more than four percent in 2014, but as the U.S. stock market continues to rise at its current rapid pace, the Gold-to-S&P 500 ratio has fallen to its lowest level since January 2008. The research team at ETF Securities points out this current phenomenon and asks if Gold is a cheap insurance option right now. In order for this ratio to revert to historical averages, either stocks have to come down, Gold must go up, or both. In either scenario, Gold will serve as an insurance policy. The firm also points out that volatility in the stock market has been very low and cannot remain low indefinitely.

Gold and Silver prices continue to show little momentum in either direction through mid-day trading. Noted veteran trader Art Cashin said on CNBC that “fund managers may be paralyzed” as they await the European Central Bank’s (ECB) announcement Thursday. Investors expect the ECB to announce a very aggressive stimulus program to rev up a flat lining European economy. In fact, there is some speculation that the ECB might implement a negative interest rate policy.

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

• Gold, $1,246.40, Up $0.40.
• Silver, $18.80, Up $0.01.
• Platinum, $1,434.00, Down $3.70.
• Palladium, $836.40, Up $3.70.

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.