Closing Gold & Silver Market Report – 5/13/2011
Stephanie Chandler
5/13/2011 4:17:00 PM
EXPERT SAYS TO BET AGAINST TREASURIES AND OWN GOLD - This is according to Charles de Vaulx, who oversees mutual funds IVA Worldwide and IVA International. “We control risk by owning gold,” de Vaulx said. “As long as the policymakers are being irresponsible, it’s good to own some gold, especially if the [U.S.] dollar keeps falling.” US bonds, long thought of as a rock-solid investment, has come under increased scrutiny lately with the potential for high inflation and the debt ceiling looming, raising the possibility of a default on US bonds. De Vaux is currently shorting US government debt.
PIMCO, who manages the world’s largest mutual fund, and oversees assets totaling more than $1 trillion, is worried about high inflation. Chief Executive Mohamed El-Erian said of the fed’s policies, "I don’t think the policymakers know what the consequences are of what they’re doing." He went on to point out that it is not clear who’s going to buy the debt of the US government when QE2 ends next month. The US bond market wil lose its largest buyer: the US government itself.
J.P. Morgan, one of the world’s largest banks, is financing a gold mine in northern Afghanistan. USGS surveys have indicated about $1 trillion worth of minerals lie under the Afghan soil. J.P. Morgan’s investment in the country is one of the first international investments in the war-torn country, but the vast mineral reserves have been known for centuries but never been tapped due to Afghanistan being one of the most remote, undeveloped, corrupt, and war-prone regions on the globe. One only needs to look at a map to see what nations stand to benefit the most from these reserves: China and India, some of the fastest-growing yet resource-starved economies in the world. This shows that the demand for the physical metal in the market right now is very strong.
At 4:15 PM (CT) the APMEX precious metals prices were:
- Gold price – $1,494.10 (down $14.30)
- Silver price – $35.04 (up $0.15)
- Platinum price – $1,765.20 (down $6.80)
- Palladium price - $710.50 (down $10.30)
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
