Silver Market Morning

Gold Today – The New York gold price closed at $1,330.50 down $0.50 on Thursday in New York. Asia took it slightly lower to $1,327 and London held it there ahead of the Fix. London Fixed gold at $1,327.75 down $3.20. In the euro, it Fixed lower at €961.650 down €13.15, while the dollar stood at $1.3807 down over 1%. Ahead of the opening in New York gold stood at $1,330.75 and in the euro at €964.07.

Silver Today –The silver price closed at $21.28 up 4 cents in New York. Ahead of New York’s opening, it was trading higher at $21.35.

Gold _{(very short-term)}

Gold will consolidate, today in New York.

Silver _{(very short-term)}

Silver will consolidate, today in New York.

Price Drivers

There were no purchases of gold into the SPDR gold ETF [GLD] on Wednesday or into the Gold Trust, which left their respective holdings at 803.704 tonnes and 164.24 tonnes. The price held at $1,330 but as the dollar weakened against the euro and other currencies. His time the gold price was steady in the dollar but weakened in the euro against all perceived patterns.

Last month we saw the Argentinean Peso fall 19%, this week the Ukrainian Nryvnia has fallen 28% this week and by 50.14% against gold in 2014. These are stark reminders that currencies can carry no more confidence then the financial standing of the countries warrants. The world’s developed nation’s currencies are thought to be far too well backed to suffer such declines. But history has yet to show any nation capable of retaining value in its currency for more than a couple of hundred years, at best. Gold has carried such confidence for thousands of years. Europe has seen two wars and hyperinflation in the last century that shows just how temporary confidence in paper money can be. But we have been trained to look only a few years ahead, a decade at the most, so we are likely to ignore the dangers currencies face until they are on us. But a reminder from the wise investor who said, “People buy gold not because they want to make money, but because they have money”.

With China soon to widen the trading range of its Yuan before June, the currency has fallen nearly 1% in the last day. We believe we are the only forecasters who say that the Yuan will fall as it approaches and reaches full convertibility. [Get the bigger, longer picture from www.GoldForecaster.com and www.SilverForecaster.com to subscribe and visit www.StockbridgeMgMt.com to hold gold so it can’t be confiscated]

Across in India, we expect the Rupee to face an uphill battle again as that economy is about to report a 4.9% growth rate almost half of what it saw at its peak in the last few years. This will further damage the ruling party’s chances of returning to power. Politicians will always do the popular thing, often at the expense of the right thing. This is why we expect the government to ease up on gold import restrictions and duties at the end of March, to curry favor with its people.

Silver – The silver price will continue to be dominated by and move with the gold price!

Regards,

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