Closing Gold & Silver Market Report – 7/5/2011
Robert Davis
7/5/2011 4:17:00 PM
GREECE WELCOMES PORTUGAL TO JUNK RATING TERRITORY – Ratings agency Moody’s downgraded the Portugal’s debt to junk this afternoon, a move that happened only months ago for Greece. Moody’s is the first ratings agency to move Portugal’s debt to less than investment grade. Reflecting the sentiment that the euro zone is no where near the end of the crisis, Robert Tipp of Prudential Fixed Income said, “[Portugal’s] ratings downgrade reminds markets that it's not just Greece with debt issues. Once Greece gets wrapped up, you move on to the next country, …that will be the shape of things to come over the next year or two…” The value of the euro tumbled on the news of the downgrade.
Mohamed El-Erian, Chief Investment Officer of Pimco, which manages the world’s largest mutual fund, is less than optimistic about the economic recovery. In a column he wrote for Reuters today he states, “Europe’s debt problem is indeed a headwind for what remains a disappointing US economic recovery.”
Gold has a history of being a long-term preserver of wealth, even in times of great turmoil.
At 4:15PM (CT) the APMEX precious metal prices were:
- Gold price - $1,517.50 – Up $33.90
- Silver price - $35.54 – Up $1.77
- Platinum price - $1,743.30 – Up $26.50
- Palladium price - $777.40 – Up $17.90
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
