Questions about currency, Greece asks for more time

The chairman of Rogers Holding, Jim Rogers had some very direct statements regarding his investment outlook in a recent interview. On the topic of global currencies and their future, the chairman was quoted as saying, “paper money is becoming more suspect”. When asked about gold he said that it “has been used for thousands of years and he’s not one to question history.”  He also added that the “cracks” have started show in global currencies and “maybe within ten years we won’t use paper money.”

Talks have begun between European Union leaders today regarding the economic crisis that is ongoing in the region. One of the main topics is going to be the country of Greece and their ability to pay back the loans they have taken from the EU. Greek Prime Minister Antonis Samaras is making his case to get an extension on deadlines to pay back the funds.  “All we want is a bit of ‘air to breathe’ to get the economy running and to increase state income. More time does not automatically mean more money,” Samaras said. The main issue revolves around the Greek government agreeing on an exact plan to raise the funds needed. If the debt continues to go unpaid there could be more talk of Greece exiting the union.

In the United States, there is a small town in Wyoming that has the attention of the economic world. In Jackson Hole, Wyo., the Federal Reserve is holding its annual meeting of many of the top central bankers from around the world. In the past, these meetings have given way to market-shaping events such as monetary easing. As for this year’s meeting, most experts aren’t expecting much, if anything. After the meetings the Fed’s Chairman, Ben Bernanke will speak publicly to give his notes on the event.  “I don’t think he’s going to say anything new,” added Catherine Mann, a finance professor at Brandeis University.

At 1:00 pm (EDT), the APMEX precious metals spot prices were:

  • Gold, $1640.00, Down $1.40.
  • Silver, $29.58, Up $0.04.
  • Platinum, $1526.60, Up $17.80.
  • Palladium, $630.40, Up $4.70.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 7 p.m. (CDT)! Or call us Fridays until 5 p.m. (CDT)! 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.

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Merkel backs euro, may not back Greece

 

U.S. stock futures received a boost this morning, thanks to German Chancellor Angela Merkel.  Overnight, Merkel reaffirmed Germany’s commitment to the euro, much like what European Central Bank president Mario Draghi said recently.  “With Merkel voicing her support for Draghi’s plans and restating that all measures would be taken to defend the euro, investors are breathing a sigh of relief this morning,”” said Mike McCudden of Interactive Investor.

Speculation that a Greek exit from the eurozone is building today, as Greek Prime Minister Antonis Samaras is scheduled to meet with Merkel today and French President Francois Hollande Saturday.  Recently, there has been talk of Greece seeking to extend their austerity program over four years instead of the originally-agreed-upon two years, which may not sit well with Germany and France, who are reportedly finished compromising with Greece.  Samaras and his political party promised this extension during elections in Greece, and not being able to obtain it may cause further political issues in the country.

Gold and Silver prices have recovered from slight early morning losses on Merkel’s pledge to the euro.  Nick Tevethan of ANZ in Singapore said, “The (Gold) market is still moving on changing expectations of central bank actions, and is so far unwilling to push prices out of the $1,590 to $1,630 range.”  The Federal Reserve’s Jackson Hole, Wyo. meeting at the end of the month is likely to send Gold out of that range.

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1,618.90, Up $1.20.
  • Silver, $28.35, Up $0.03.
  • Platinum, $1,458.50, Up $22.30.
  • Palladium, $595.30, Up $10.30.

 

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Gold Climbs Higher

 

Gold prices have made a significant move upwards today due to uncommonly positive news from Europe. Andrey Kryuchenkov, an analyst at VTB Capital summed it up by saying, “The (European Central Bank) comments that the (European Stability Mechanism) can eventually get a banking license and a pronounced euro rebound against the U.S. dollar drove gold prices to 2-1/2 week highs.”

The good news out of Europe today could be short lived. Reports from Spain and Greece are far from positive. In Spain the debt is getting to the point of needing a full bailout. In Greece, the problem is paying on the bailout they have already received. Greece’s Prime Minister Antonis Samaras was quoted as saying, “There are certainly delays in this year’s agreed program, and we must quickly catch up.” Another official speaking on condition of anonymity was much blunter, as the official said, “The debt-sustainability analysis will be pretty terrible.”

The issues in Europe have not gone unnoticed by the United States Treasury Secretary Tim Geithner. It has been seen that when a large global economic power such as Europe struggles, the effects are seen worldwide. “The economic recession in Europe is hurting economic growth around the world and the ongoing financial stress is causing a general tightening of financial conditions, exacerbating the global slowdown,” Geithner said in testimony before the House Financial Services Committee.

At 1:00 pm (EDT), the APMEX precious metals spot prices were:

  • Gold, $1606.90, Up $28.70.
  • Silver, $27.40, Up $0.50.
  • Platinum, $1400.50, Up $13.90.
  • Palladium, $565.50, Up $2.90.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 7 p.m. (CDT)! Or call us Fridays until 5 p.m. (CDT)! 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.

 

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