Mid-Day Gold & Silver Market Report – 6/9/2014

Peter LaTona

6/9/2014 12:04:00 PM

CHINA: MOST IMPORTANT TREND IN GOLD INVESTING TODAY

Gold and Silver prices have maintained equilibrium despite stocks once again hitting new highs. One reason for this may be that the U.S. does not affect the Gold and Silver market nearly as much as China and India do. India has slowed somewhat due to high taxes and tariffs on Gold imports, which may be lifted with their new president. China, however, maintains a voracious appetite with both the central bank and consumers buying Gold. In fact, since 2009, the Chinese government has placed ads during popular television shows encouraging citizens to buy Gold and Silver. It is hard to imagine that occurring in the U.S. Not only is China’s huge middle class being encouraged to purchase Gold by the government, the country has a 4,000 year history of considering Gold as a symbol of wealth.

Inflation is now “moving higher,” according to St. Louis Federal Reserve Bank President James Bullard. Only last month, Bullard expressed that inflation was stable and not a concern. Today, he is concerned. "With inflation still below target, albeit rising, and unemployment still high, but falling, the Fed faces a classic monetary policy challenge … how quickly should the committee move to return monetary policy to normal given improving labor market conditions?" Bullard asked, though he did not provide an answer.

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

• Gold, $1,255.60, Up $1.10.
• Silver, $19.12, Up $0.07.
• Platinum, $1,455.10, Up $1.10.
• Palladium, $841.60, Down $2.60.

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.