Wednesday, April 20, 2011

Gold, Silver Up as ETFs (GLD) (GDX) (SLV) SIL) Close Up or Level

Silver prices moved up with gold, reaching another 31-year high as gold blew past the $1,500 an ounce mark on Tuesday for the first time. SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), iShares Silver Trust ETF (SLV) and Global X Silver Miners ETF (SIL) closed up or level on the day.

The gold contract for June delivery rose $2.20 to settle at $1,495.10 an ounce, shy of its all-time and daily high of $1,500.50 an ounce. Spot gold prices dropped 50 cents, to close at $1,495.90 an ounce.

Silver prices for May delivery climbed almost a dollar to settle at $43.91, adding 96 cents, another 31-year high.

Most of this is based upon the collapsing U.S. dollar, which pulled back again today, the tightening in China, sovereign debt crisis in Europe, unrest in the Middle East, inflation concerns and consequences of the Japanese earthquake. Silver is used by some investors as a gold alternative when gold price rise to high levels as they now are.

The warning from rating agency S&P that the U.S. may have its debt downgraded if it doesn't deal with the risky debt crisis and you have a weak macroeconomic outlook favoring silver, gold and other commodities.

Global X Silver Miners ETF closed Tuesday at $28.73, gaining $0.50, or 1.77 percent. iShares Silver Trust ETF ended the session at $43.00, gaining $0.58, or 1.37 percent. Market Vectors Gold Miners ETF closed at $61.64, up $0.81, or 1.33 percent. SPDR Gold Trust ETF closed the day level at $145.93.

No comments: