Silver Market Morning

Gold Today – Gold closed in New York at $1,584.70 up $12.20 on yesterday. In Asia and London it traded slightly higher at $1,586.80 ahead of the Fix in London which was set at $1,581.50 up $9 and in the euro at €1,207.160 up just €2, while the euro was at €1: $1.3101 cents. Ahead of New York’s opening it traded at $1,578.45 and in the euro at €1,206.30.

Silver Today – Silver closed at $27.96 up 73 cents in New York yesterday. Ahead of New York’s opening silver stood at $27.70.

Gold _{(very short-term)}

Gold will consolidate around present levels, in New York today.

Silver _{(very short-term)}

Silver will consolidate around present levels, in New York today.

Price Drivers

Gold & Silver – Nearly 5 tonnes of gold was sold from the SPDR gold ETF yesterday, which brought the gold price down from $1,590 back to the $1,584 level. Gold is now over the $1,580 level and looking at attacking the $1,590 level. This is a critical stage technically.

[Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com] Asian demand remains good.

We feel that investors should be clear on the difference between a short to medium term investor and a long-term investor’s view of a ‘safe haven’. We feel this because “profit” oriented investors aim to buy and sell in the short to medium term to achieve that. This brings investing skills of the investor to the fore. When a currency weakens severely because of an underlying systemic problem in the nation or a nation collapses because of war or economic and monetary catastrophe, this goes beyond investor skills usually, as George Soros knows from his sterling adventure. Gold is a ‘safe haven’ because it gives long-term investors protection against such events. By their very nature short to medium term “profit” oriented nature cannot enjoy such investments. They can trade them, but this, in itself stops an investment being a ‘safe haven’. If you invest in gold as a ‘safe haven’ against a dollar collapse and the collapse hasn’t come, then gold hasn’t failed as a ‘safe haven’. If the dollar had collapsed, it would have been the best ‘safe haven’ around, just as gold in Japan is acting as a ‘safe haven’ there.

Investors should be turning to gold for that certain Monday, after capital destructive Controls have been announced, when it comes. The very presence of a Eurozone crisis and the purposeful weakening of the Yen are warning signals that that time is approaching. But then governments may decide that gold is their chosen safe haven too and seize yours!

Silver – Silver experienced some of the ‘shunt effect’ on its price yesterday and jumped through $28 before pulling back today.

Regards,

Julian D.W. Phillips for the Gold & Silver Forecasters