Mid-Day Gold & Silver Market Report – 9/29/2014

Peter LaTona

9/29/2014 12:04:00 PM

GOLD & SILVER MAINTAIN MORNING GAINS AS STOCKS HEAD LOWER

Gold and Silver prices remain on the upswing as the DOW approaches a triple digit loss. “Today will be steady on the upside for gold as people try to hedge the selloff in the stock market,” George Gero, a New York-based precious-metals strategist at RBC Capital Markets LLC, said in a telephone interview. Gold and Silver prices did retreat slightly on the report that consumer spending was up in August. However, this was somewhat tempered by another poor housing report.

Over the weekend, four eminent economists issued a disturbing report that the global economy is still highly leveraged and at serious risk for another global financial crisis. This year's Geneva Report, from the Center for Economic Policy Research, was written by Luigi Buttiglione at Brevan Howard, Philip Lane at Trinity College Dublin, Lucrezia Reichlin at London Business School, and Morgan Stanley's chief UK economist Vincent Reinhart. It outlines two clear concerns. First, contrary to what many might think, the developed world did not learn a lesson from the financial collapse of 2007-08. The developed world is not deleveraging, in fact, as economies show any signs of improvement debt is going up. Secondly, emerging markets never let up on their debt accumulation. The financial crisis was a small speed bump. The authors are fearful that this dynamic could lead to a doom loop stating, "Deleveraging and slower nominal growth are in many cases interacting in a vicious loop, with the latter making the deleveraging process harder and the former exacerbating the economic slowdown. Moreover, the global capacity to take on debt has been reduced through the combination of slower expansion in real output and lower inflation."

At 1:00 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,219.50 Up $2.60
• Silver, $17.62 Up $0.02
• Platinum, $1,310.90 Up $7.80
• Palladium, $790.20 Up $6.40

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