TANGIBLE INVESTMENTS - Los Angeles - by James O'Dell - Gold continues to hover above the $1,250 an ounce level after a weaker than expected non-farm payrolls report and remains on pace, at $1,252.30 an ounce to finish the week higher, while silver could end the week above the $19 an ounce level as it is currently trading at $19.04 an ounce. Had the number of new jobs risen to a point that the market felt was sufficient, then the gold price would have eased sharply as in the past, but that didn't happen.
Nonfarm payrolls rose just 217,000 in May, which was slightly below expectations, but when the payrolls report for the previous month was revised lower to reflect 6,000 fewer jobs created in April, it benefitted gold. The fact is since December 2007, the total number of jobs has hardly changed at all, but the number of workers who have left the labor force has increased by 12.8 million, that's up from 79.2 million 7 years ago, to a record 92 million today. Gold got a boost on Thursday when policymakers at the European Central Bank (ECB) took action by cutting key interest rates and increasing stimulus measures to bolster the euro zone recovery.
Meanwhile, an online survey of "how to change the silver fix" by the London Bullion Market Association’s (LBMA) shows respondents agree that the fix is a useful pricing mechanism but prefer an electronic and auction-based price discovery tool over the present system which is under attack for possible manipulation. Nearly two-thirds of respondents said they use the silver fix daily.
“In view of the survey results, the LBMA has launched a request for proposals from all those companies who had expressed an interest in becoming the price administrator for the silver price. This will culminate in a seminar on the 20th [of June], for LBMA members to provide feedback on the proposals received.” said Ruth Crowell of the LBMA.
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