Greece and the fiscal cliff

U.S. stock futures look to start lower today. Negotiations will continue today between the President Obama and top congressional leaders as they try to come to terms on upcoming tax increases and spending cuts, otherwise know as the Fiscal Cliff. Greece is still in the news as the euro-area finance ministers are in discussion over the next round of aid for the country’s distressed economy. Henrik Drusebjerg, senior strategist at Nordea Bank said, “We could see U.S. markets start positively, but they’re a bit nervous about Greece.”

Today, if you weren’t already aware, is Cyber Monday, a term that was coined back in 2005. Economically, it is a boost to the retail sector as was Black Friday and Small Business Saturday. It’s estimated that today’s Cyber Monday will be the biggest online shopping day of the year for the third year in a row, up 20 percent from last year.

The Gold price stayed near its five week high in overnight trading even after the dollar strengthened. Edel Tully, an analyst at UBS AG in London said, “The uncertainties surrounding the euro group meeting on Greece have impacted the euro-dollar and in turn Gold.”

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

  • Gold, $1,753.40, Up $0.00.
  • Silver, $34.21, Up $0.03.
  • Platinum, $1,616.80, Down $1.30.
  • Palladium, $670.00, Up $1.40.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EST)! Or call us Fridays until 6 p.m. (EST)! 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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GDP Report Boosts Dollar; Greece in More Trouble

Gold and Silver are trading flat as the U.S. dollar is being fueled by an improving GDP number released this morning. The U.S. economy grew 2.0 percent in the third quarter, thanks to improving home building and higher spending. This is the final report regarding economic growth before the presidential election next month, and was eagerly awaited by investors.

More trouble in the eurozone is helping the dollar’s rise. One eurozone official stated, “It is clear that Greece is off track and there is no chance they will cut the debt to 120 percent of GDP in 2020 as envisaged. It will be rather 136 percent, and this would be under a positive scenario of primary budget surplus, a return to economic growth, and privatization.” Reports out of the region say that Greece will need even more aid, this time to the tune of about $39 billion.

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

  • Gold, $1,713.30, Down $0.20.
  • Silver, $32.13, Up $0.03.
  • Platinum, $1,559.00, Down $7.30.
  • Palladium, $604.00, Down $1.50.

APMEX’s Account Managers now have extended hours and are here to serve you until 8 p.m. (EDT) Mondays through Thursdays! Or call us Fridays until 6 p.m. (EDT)! 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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Gold and Silver Prices Decline in Morning Trading

 

Two forces are affecting Gold and Silver prices this morning. One is profit taking as traders take a portion of their profits off the table. The second is the rising U.S. dollar relative to the euro and other currencies. Investors are still digesting Friday’s jobs report, which stemmed the tide of the falling dollar. Today’s meeting of Europe finance ministers will be closely watched. Spain and Greece will be the hot topics. No decisions are expected today, but discussions will be the prelude for the next meeting in Brussels on Oct. 18-19 that will answer whether Spain will ask for a bailout and what to do about the Greek debt.

The situation in Greece has become so volatile that special preparations are being made for German Chancellor Angela Merkel’s visit on Tuesday. Chancellor Merkel’s call for austerity measures is not popular with the Greek populace. Greece is preparing for two days of strikes with over 7,000 plainclothes police and hundreds more undercover agents. Snipers will be stationed on rooftops throughout the city.

Despite recent strong gains in the U.S. stock market, investors are bracing for the worst earnings season since 2009. Analysts are expecting earnings to decline, after 11 quarters in a row of gains. These poor results are attributed to the slower than expected U.S. economic recovery and the overall economic slowdown worldwide.

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

  • Gold, $1,771.90, Down $8.40.
  • Silver, $33.96, Down $0.62.
  • Platinum, $1,684.40, Down $19.80.
  • Palladium, $653.50, Down $10.70.

APMEX’s Account Managers now have extended hours and are here to serve you until 8 p.m. (EDT) Mondays through Thursdays! Or call us Fridays until 6 p.m. (EDT)! 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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Could Gold Be Set for Its Best Year Since 2012?

In a report on Bloomberg this morning, the prospect that gold might rise to $1800 an ounce by year’s end could extend gold’s gains for the year to over 15%. This would be the greatest gain since the 30% increase in 2010. The speculation for rising prices continues to be the expectation the many world governments from the U.S. to China will enact measures to stimulate their economies, which will increase gold prices as an inflation hedge.

Although there are many who do not expect any major announcement by Fed Chairman Ben Bernanke at this week’s meeting in Jackson Hole, Wyoming, one top Fed official is speaking out for more stimulus. Chicago Federal Reserve Bank President Charles Evans told reporters that the Federal Reserve needs to launch QE3 immediately and keep buying bonds until the jobless rate goes down. “I don’t think we should be in a mode where we are waiting to see what the next few data releases bring” Evans said to the Hong Kong Bankers Club. “We are well past the threshold for additional action; we should take that action now.”

German Chancellor Angela Merkel has asked officials in her coalition to “weigh their words” when they call for a Greece exodus from the euro. According to Chancellor Merkel, these words are very damaging at a time negotiations are at a critical phase. It is clearly her intent to keep the euro intact as is. She also expressed that Greece Prime Minister Antonis Samaras is taking very serious steps to reduce debt. September is seen as a critical month for European leaders as they continue to try and get a grip on this now three-year old crisis.

At 9AM EDT the APMEX precious metals prices were:

  • Gold price – $1,670.40 – down $1.00
  • Silver price – $31.01- up 30 cents
  • Platinum price – $1,546.80 – down $8.60
  • Palladium price – $651.30 – down $2.40

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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