Closing Gold & Silver Market Report – 6/3/2011

Ryan Schwimmer

6/3/2011 4:18:00 PM

MOST AMERICANS SAY RECOVERY IS 3 YEARS OUT, SOME SAY NEVER

In a recent survey, 61% of Americans believe that we are at least three years away from our pre-recession lifestyles.  10% believe we will never fully recover from the recession that hit in 2008. Fred Crawford, CEO of AlixPartners, who conducted the survey, says, “Americans continue to push their expectations for return to a pre-recession ‘normal’ further and further into the future – close enough for comfort, but far enough away to seem realistic.  But as that happens, more and more it seems normal is actually where we are right now.”  After today’s startling jobs report, stocks finished the week down by 2.3%, the dollar is at a one-month low, and consumer sentiment seems to be fading.

Andrew Lilico of The Telegraph wrote a blog on what happens when Greece defaults.  He reiterated that it is a matter of when, and not if.  He explains that when it happens, Ireland will default on its debts, Portugal will look at the situation before deciding whether it should default, France and Germany would take such losses that they would be forced to enact a round of quantitative easing much like the three rounds we’ve had in the U.S., and then it will spread to Spain.  His entry ends short, however, as it does not go into how this will affect the United States.  His main concern is the UK, as that is his home country.  The United States, and other countries around the world, hold some of the debt of Greece, Ireland, Portugal, Germany, France, Spain, etc.  Those countries having troubles or defaulting on their debts entirely will undoubtedly hurt.

At 4:15 PM (CT) the APMEX precious metals spot prices were:

• Gold - $1,544.10 (up $10.90 on the day)
• Silver - $36.38 (up $0.09)
• Platinum - $1,817.40 (down $1.40)
• Palladium - $785.30 (up $12.80)

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