Mid-Day Gold & Silver Market Report – 9/25/14
Peter LaTona
9/25/2014 12:04:00 PM
GOLD REBOUNDS AS STOCKS TAKE A 200 POINT DIVE ON GLOBAL WORRIES
Gold and Silver prices have rebounded from sharp price dips in the early morning, as the U.S. stock market heads down. There are reports that Russia is considering a measure that would allow for its courts to seize foreign assets. "To us that would signal a threat from the Kremlin that the Russian-U.S.-Europe conflict economically might take a turn for the worse, should it be enacted. They are signaling that unless concessions or negotiations take place, we're prepared to do this," Jim Russell, senior equity strategist for US Bank Wealth Management, said. It was reported by Reuters that this draft law was submitted to Russian parliament on Wednesday.
There seems to be a disconnect in the current Silver market. While the price of Silver has gone down significantly in conjunction with Gold prices, the biggest Silver ETFs have seen an increase in buying while the biggest Gold ETFs have seen an increase in selling. One would expect that the Silver ETFs would be experiencing selling as well. If Silver investors are viewing the market as oversold, why aren’t the Gold investors jumping in as well? The current Gold to Silver ratio is at 69:1, which is higher than normal. Perhaps all of this is a result of expectations that the stock market is in for a fall and Gold and Silver will go up as the markets go down. Maybe the Silver investor sees more upside potential in Silver than they do in Gold based on the current Gold to Silver ratio.
At 1:00 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,222.20 Up $1.20
- Silver, $17.52 Down $0.26
- Platinum, $1,315.90 Down $5.50
- Palladium, $802.00 Down $18.10
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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
