Mid-Day Gold & Silver Market Report – 10/7/2014

Peter LaTona

10/7/2014 12:02:18 PM

FORMER FED CHAIR ALAN GREENSPAN TALKS UP GOLD

In an article published last week, former Federal Reserve chair Alan Greenspan said that China could be thinking of making major Gold purchases, perhaps, even thinking about making their currency (renminbi), convertible to Gold. What would happen if this were announced? Would other countries be forced to follow? The article went on to discuss how odd it is that big fiat countries, from the United States on, keep hundreds of billion dollars’ worth of Gold in their central bank vaults. He pointed out that when monetary policies drive Gold prices low, central banks do not want to sell. When Gold prices are high, they are reluctant to sell the one monetary asset that everyone believes in, so the Gold stays put.

Gold and Silver prices can react to any news that could potentially affect the global economy. There has been much written about Gold’s reaction to geopolitical tensions in both Ukraine and on the Gaza Strip and now there is another growing concern, Ebola. Most of us realize that the U.S. has experienced our first case of Ebola and today the focus is on Spain. Spain is absolutely on pins and needles especially in the capital city of Madrid. Spaniards just learned that a nurse’s aide in Madrid has become infected after attending to an African-based missionary in a hospital who died. The aide’s husband has been quarantined as well as a host of others.

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

• Gold, $1,213.30 Up $4.00
• Silver, $17.25 Down $0.05
• Platinum, $1,264.10 Up $12.90
• Palladium, $787.90 Up $20.80

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.