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Silver Profits from Europe’s Woes, Other Precious Metals Drop

October 29, 2011 at 2:19 by Vladimir Vyun

Concerns about Europe quickly returned to markets driving commodities down. Surprisingly, among precious metals only silver, the metal tending to profit less from uncertainty and pessimism than other precious metals, was able to gain.

There were bad news from Europe that justified the worries. The costs of Italy’s debt increased. Fitch Ratings warned that the planned 50 percent haircut of Greece’s debt can be considered a default:

An EU invitation to private investors in Greek government debt to exchange their bonds for new debt with a 50% lower notional value would likely result in a post-default rating in the ’B’ category or lower depending on private creditor participation.

The returned fears made most commodities, even precious metals, fall. The Standard & Poor’s GSCI Index of commodities dropped 1.3 percent. Some analysts argue that the decline wasn’t a start of a downward trend, but merely a correction after the strong rally on the previous day.

Gold declined to $1,743.50 from $1,746.60 per ounce on COMEX. Silver spot price advanced from $35.12 to $35.37 per ounce. Settlement of platinum fell to $1,649.60 from $1,657.0 per ounce.

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