Mid-Day Gold & Silver market Report – 6/5/2014

Peter LaTona

6/5/2014 12:24:00 PM

METALS PRICES RISE ON ECB NEGATIVE INTEREST RATES ANNOUNCEMENT

Gold is widely accepted as a hedge against both inflationary and deflationary pressures, so it is no surprise to see Gold prices jump as the European Central Bank’s decision to declare a negative interest rate on deposits proves there is a global war against deflation. Deflation is defined as a general decline in prices, often caused by a reduction in credit or a decrease in government, personal or investment spending. Although declining prices might not sound like a negative, they generally cause falling profits, business closures, shrinking employment and incomes, and greater loan defaults. Although the effect is not currently being felt in the U.S., it is a decades-old problem in Japan and is rapidly spreading throughout Europe, China, Russia and Brazil.

There have been headlines suggesting that home prices are rising, although at a slower rate than before. However, according to Allan Weiss, co-founder of the Case-Shiller Index, this might not tell the whole story. While the Case-Shiller Index looks at 5,000 home price averages in certain zip codes, Weiss compiled a new housing index that looks at 50 million actual home prices. This new report sees falling prices, namely in Chicago, which is down 1.1 percent, and New York, down 2.4 percent.

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

• Gold, $1,255.40, Up $9.10.
• Silver, $19.13, Up $0.28.
• Platinum, $1,445.60, Up $10.70.
• Palladium, $839.50, Up $2.40.

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.