Silver Market Morning

Gold Today –Gold closed stronger at $1,333.30 down nearly $7 in New York yesterday. Asia lifted it slightly by $2 and London held it there until the Fix, where it was set at $1,336.25 up $3.25 over yesterday’s Fix. In the euro it Fixed at €968.789 up €0.11 over yesterday’s Fixing. Ahead of New York’s opening gold stood at $1,340.00 and in the euro at €970.80, while the dollar fell further to $1.3807: €1.

Silver Today – Silver rose to $22.56 in New York. Ahead of New York’s opening it traded at $22.70.

Gold _{(very short-term)}

The gold price should show a stronger bias in New York, today.

Silver _{(very short-term)}

The silver price should show a stronger bias today, in New York.

Price Drivers

In thin trading yesterday there were no sales yesterday from the SPDR gold ETF holdings leaving its holdings at 878.324 tonnes and no sales from the holdings of the Gold Trust which left them, again, at 172.54 tonnes. As a result the gold price was left relatively unmoved.

We are conditioned to watch the gold price in the dollar, but not to measure the dollar in the amount of gold it can buy. And yet worldwide the gold price first measures the price of the local currency, because it is an asset separate from currencies. As both the German central bank Governor and Marion Draghi the ex-head of Italy’s central bank have said, gold is a ‘counter’ to the U.S. dollar. We add that it is a ‘counter’ to all currencies [which are branches of the U.S. dollar]. Because of a campaign started in 1971 to try to discredit gold as money, we are conditioned to believe that currencies alone are money. This would have been the case if money was managed by the rigid standards that gold brought to financial markets, when it was described as money, but such management was diluted, distorted and debauched. Quantitative easing is one such distortion as savers of such money will tell you. So it cannot bring, over the long-term, the virtues of gold to the monetary world. This is being made clear by the intention of China to carve out a separate world for the Yuan, rather than to subject it to the U.S. dollar, as every other currency has. In time they intend to make the Yuan a reliable global reserve currency, likely taking a great deal of that role away from the dollar. [Find out more from www.GoldForecaster.com and www.SilverForecaster.com to subscribe to our newsletters and visit www.StockbridgeMgMt.com to hold gold so it can’t be seized]

We are soon to produce an article that discusses current demand and supply factors for gold, developing further the correct warning given by Eric Sprott. This article and these warnings should be taken most seriously, by gold and silver investors for their own sakes.

‘D-Day - 84’....................The dollar continues to fall and now stands at a new low of $1.3807 against the euro.

Silver – The silver price is pawing the ground, ready to charge!

Regards,

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