June 25th Early Week Silver Market Update

After we saw both gold and silver lose more value on Monday, the start of Tuesday was a welcomed relief. In the early morning hours we saw both gold and silver make some gains, albeit small ones. After last week’s monumental collapse of precious metals due to the Federal Reserve’s Open Market Committee meeting, any increase in the spot value of gold and silver will be greeted with open arms and smiling faces. Today we also saw a near tragic Chinese economic and financial disaster be avoided, or at least that is what the country’s monetary officials have announced. There are few major economic stories making the headlines this week which means that unless something huge and unexpected happens across the world marketplace it is going to be very difficult for gold and silver to make any large gains in value.

Chinese Economic/Financial Worries

The main story grabbing everyone’s attention yesterday had to do with the potential happening of a liquidity crisis in China. This coined “cash crunch” did well to scare the world marketplace and actually hurt Asian stocks considerably. Only a day later China’s monetary officials have announced that the situation has been brought under control and that economic turbulence was only a temporary issue. It is relieving for investors to know that China has this latest situation under control, but questions about their economic strength in general have only become more frequent.

While China still has a lot of sorting out to do as far as their economy is concerned, the announcement by their monetary officials that yesterday’s issues are over and done with have done well to help Asian stocks rebound from their losses yesterday.

Other World News

As we move on to news from the rest of the world we are seeing many central banks from around the world make announcements alluding to the fact that their changes in monetary policy, or simply their monetary policy going forward, will not be nearly as tight as people are beginning to think the US’ will be.

In addition to that, investors and market watchers from around the world are paying attention to a European newspaper’s report that Italy may need another financial bailout package in the near future. With a terrible credit rating and an economy that is constantly declining, the Italians have few options left before their economy is sent into a insurmountable downward spiral. A bailout sounds fine and good, but whether the EU and the countries that comprise it will approve or not is yet to be seen. Keep in mind that Italy is not the only country in Europe facing economic and financial hard times which means that they are likely not the only nation in need of a bailout.

Rest of the Week Roundup

With the current economic atmosphere as it is now, there are seemingly few opportunities for gold and silver to make positive gains this week. One thing that is for sure, however, is that bargain hunters will be out in droves attempting to take advantage of these historically low precious metals prices. Online gold and silver buying will be full throttle this week and the hope is that an increase in demand will be able to aid the ailing prospects of precious metals, at least a little bit.


Posted in Market News

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