Morning Gold & Silver Market Report – April 29,2011
Peter LaTona
4/29/2011 8:10:00 AM
INDIA’S SILVER DEMAND TO SURGE 10% – 15% – Silver has gone up over 100% in the past six months and yet Indian demand is still expected to go up 10% - %15 this year. Investors in India are sensing an even bigger price hike and they also fear a lack of supply. ``The white metal has beaten gold in terms of returns given to investors both last year and this year so far. Gold may have the glamour, but silver has the momentum right now,'' Anjani Sinha, chief executive officer of the Mumbai-based bourse, the National Spot Exchange, said to a news agency.
In Spain, unemployment rose again up to 21.3% and inflation is now at 3.5%. Spain’s problems could become Euro zone problems, if their economy continues to decline to the point they request assistance."Hopefully this marks the peak of unemployment. I don't think the situation will improve dramatically in the next few quarters but it should at least stabilize," economist at Unicredit Tullia Bucco said.
Italy offers an extension of their solar energy incentives until August. Italy’s solar energy industry is one of the largest in Europe, but still no where near the level of China. Silver represents a key component in the manufacturing of a solar panel. If the solar industry is in its infancy, its demand for silver will only go up. Also in the solar energy news, French firm Total SA offered to pay up to $1.37 billion for the US solar energy company SunPower Corp.
In the US, food and gas lifted consumer spending in March, which caused the over-all increase in inflation over one year ago, to be the largest in 10-months. This spending increase is not of concern at the moment, as it would indicate consumers may be adapting to higher prices. If gasoline were to continue to rise and stabilize above $4 a gallon, it might be a different story.
At 8AM (CT) the APMEX precious metal prices were:
- Gold price - $1,538.90 (up $6.20)
- Silver price - $48.83 (up $1.24)
- Platinum price - $1,850.80 (up $9.90)
- Palladium price - $787.80 (up $10.50)
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
