Gold & Silver Daily Market Recap: November 13th, 2012

Precious metals moved higher amid an uncertain economic climate as the eurozone debt crisis rolls on. The International Monetary Fund (IMF) and EU leader failed to come to a decision on funding for Greece before paying the next tranche of 31.5 billion euros of aid instead deciding to meet again on November 20th.

Tempers are flaring over the Eurozone crisis as IMF MD Christine Lagarde and Eurogroup president Jean-Claude Juncker had a dramatic public argument. Juncker declared that the deadline for Greece to bring its national debt down to 120% of GDP had been moved by two years, to 2022. Lagarde denied that this was the case, prompting Juncker to reiterate it and tell reporters that "I'm not joking". This is a breach of the IMF's debt sustainability target of 2020 that was agreed in March when a second bailout of Greece was signed off.  With all this bickering it would appear that Greece has now been given an extra two years to consolidate its national finances and to implement the necessary reforms.  The Euro dollar fell to a low of 1.2659 with all the turmoil, but recovered to 1.2711 as Greek debt bond sale this morning managed to ease fears slightly after the government managed to sell 4 billion euros of bills.

Over in the U.S data wasn't so inspiring as IBD/TIPP economic optimism for November disappointed printing at 48.6, well below the forecast of 53.8 much lower than the previous month of 54.0. The main issue on the table for the U.S is the fiscal cliff. If the fiscal cliff is allowed to pass it would trigger 607 billion in spending and new taxes which at this point the average U.S citizen can't handle.

Spot silver has traded shapely higher over the past few days as news out of China has kept the metal well bid. China's trade surplus widened in October compared with the previous month. The dual role metal is currently acting as such with its industrial and investment appeal. Unlike gold, silver actually gets used up and is somewhat unrecoverable. Typically, most gold goes into things like jewelry. However, silver actually gets used in electronic processes, as well as many other industrial demands. Because of this, 90% of the silver that’s mined during any given year is typically destroyed or used.
 

 November 13th Closing Prices