Closing Gold & Silver Market Report – 9/4/2014

Ted Prince

9/4/2014 4:24:00 PM

ECB POLICY WEIGHS ON METALS AS GOLD SUPPLY COULD SEE SHORTAGE

Strength in the U.S. dollar has once again marginalized the demand for bullion as the greenback climbed to its highest level since July 2013.  The yellow metal was in positive territory until news from Europe revealed plans by the European Central Bank to cut interest rates and begin an asset purchase program in an effort to stimulate the region’s lagging economy.   However, some experts are downplaying the significance of this endeavor as it relates to Precious Metals prices.  “Yes, today people are excited, but how many positive jolts can the world take from another central bank lowering interest rates before people get immune to that,” Jorge Beristain, an analyst at Deutsche Bank AG, said. 

Precious Metals continue to tread water inside a relatively slim trading range since last year’s massive pullback.  Though improvement in the domestic economy and an ongoing stock have lured investors away from safe-haven investments like Gold and Silver, some experts believe an impending shortage in Gold supply could force the yellow metal higher in the near future.  With lower prices, new exploration of the metal has slowed and a general tightening of the sector has resulted in a lack of new Gold deposits.  With less money being spent to fund fewer projects, Gold is still being extracted at 1.5 times the expected depletion rate.  Supply concerns should be noted as most Precious Metals investors possess a long-term investment strategy for their Gold holdings.

At 5 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,262.70, Down $8.60.
• Silver, $19.09, Down $0.10.
• Platinum, $1,406.40, Down $7.10.
• Palladium, $890.50, Up $14.50.

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.