Silver Market Morning

Gold Today – The gold price closed at $1,261.00 up $0.20 on Wednesday in New York. In Asia and London the price held at that level until the Fix, where it was set at $1,261.75 down $0.75 and in the euro at €932.902 up €0.273, while the euro stood weaker at $1.3525. Ahead of the opening in New York the gold price was trading at $1,264.20 and in the euro at €934.92.

Silver Today – The silver price closed at $19.21 down 2 cents, in New York. Ahead of New York’s opening, silver was trading at $19.29.

Gold _{(very short-term)}

Gold should continue to consolidate, in New York today.

Silver _{(very short-term)}

Silver, should continue to consolidate, in New York today.

Price Drivers

Once again, there were no sales or purchases from the gold ETFs in the U.S. yesterday, while the gold price held in the new tight trading range on relatively light volumes. The euro continues to slip albeit at a slower pace to $1.3522. The holdings of the gold ETFs continue to stand at 787.076 tonnes in the SPDR gold ETF and at 162.51 tonnes in the Gold Trust.

The sweet sound being heard this morning, especially to those who believe that gold prices are being manipulated, was that the ‘rigging’ of markets, especially the foreign exchange markets is now being criminalized. Any trader AND banks and its directors, who are seen to be involved in doing this, could face jail time. This will not extend to governments that institute policies that are designed to weaken [rig] exchange rates. We expect the principle now established, to extend to all financial markets including gold and silver. But again if governments deem it necessary to do so they will not face such charges. There is a clear division of institutions and individuals on the one side and governments on the other side in this matter. [Avoid Gold & Silver confiscation; www.Stockbridgemgmt.com ]

This morally muddy distinction should be understood by investors. However, one feature history shows us is that gold keeps standing as real money ‘in extremis’ no matter what governments decide or do. Their efforts to discredit gold either as money or an asset [which is what money should be] have failed over history and in the last 43 years. [For more on this subscribe to www.GoldForecaster.com and visit www.Stockbridgemgmt.com to protect yourself from penalties from holding your gold overseas when it is to be confiscated].

Silver – We emphasize that silver prices have moved with gold for the last few years now. In the last year the investment side of silver has grown dramatically, explaining just why silver moves as it does with gold and will continue to do so in the future. Should government take control of the gold markets and stocks, silver will replace it as a store of wealth for sure. When that happens governments will be quick to recognize this and seek to control it too. After all government will need to control whatever constitutes money in extreme times. [www.SilverForecaster.com] So again, we say to silver investors, follow gold if you want to understand silver prices and where they are going.

Regards,

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