Daily Bullion Market Update 9/02/11
By Barry Stuppler – MintStateGold.com
Are you ready for another run in Gold? A combination of no growth in the August employment numbers and continued problems with the Eurozone debt issues started a gold and silver rally in Asia, and rounded into Europe and the U.S. Markets. Right now, at 11am PDT, gold is trading at $1,875.50 per ounce, up $47.60 (2.6%) on a heavy volume of trading for a Friday ahead of a holiday weekend. As the Eurozone debt problem continues to be a crisis there is talk about Gold. Whether the discussion is about using gold as collateral for future loans or forcing some countries to sell their gold, the amount of gold these countries hold is miniscule compared to the size of their debt. Additionally, there are many Central Banks who would be aggressive Gold buyers. I will be monitoring Asian and European trading over the long weekend to see the reaction.
Not surprising, Silver rallied this morning at a higher percentage rate to Gold. Why, because the halt in employment growth virtually guarantees more fiscal and monetary stimulus in the near future. Stimulus equals future inflation and Silver is the major beneficiary of monetary inflation. At 11am PDT, Silver is trading at $43.09, up $1.51 per ounce (3.6%) on a high volume of trading for a Friday.
Other Important news that affects precious metal prices:
The U.S. Department of Labor reported today that nonfarm payrolls were unchanged from last month. It was widely felt that employment would be up a minimum of 50,000 jobs. The official U.S. unemployment rate remains at 9.1%.
In a report from the newly created independent Greek State Budget Office, it was stated today that the Greek debt problem is “out of control” and despite austerity and privatization measures “no primary surplus has been achieved”.