Silver Market Morning

Gold Today – The gold price closed at $1,230.70 down $19.30 on Friday in New York. In Asia and London, gold prices recovered slightly to $1,234.40. The gold price was Fixed at $1,234.75 down $12.25 and in the euro at €955.615 down €8.585 while the euro was weaker at $1.2921. Ahead of New York’s opening, gold was trading at $1,235.40 and in the euro at €955.90.

Silver Today – The silver price closed in New York at $18.65 down 33 cents. Ahead of New York’s opening it was trading at $18.66.

Gold _{(very short-term)} We expect gold to try to consolidate with a weaker bias, in New York today.

Silver _{(very short-term)} We expect silver to try to consolidate with a weaker bias, in New York today.

Price Drivers

There were sales of 0.312 of gold from the SPDR gold ETF and sales of 0.51 of a tonnes from the Gold Trust, on Friday. The holdings of the gold ETFs stand at 788.404 tonnes in the SPDR gold ETF and at 164.72 tonnes in the Gold Trust.

We must correct an error we made last week and that is the launching of the international gold market in Shanghai will not take place on the 18^th September but on the 29^th September. We are on the opinion that this exchange is the start of a process that may be short, whereby China’s gold prices reflect the gold price far more than the London or New York markets do, currently.

Standing back and looking at the situation, we see the leading world nation buyer of gold taking second place to the developed world prices. The structure of the gold market in particular in London has, in the past, meant that the world’s gold supply has been channeled through London, where the very highest of standards to gold, apply. With such a majority of refiners in Switzerland it is now clear that the majority of refined gold bullion passes through that country as the 1 kg bar is increasingly being produced there destined for Asia. With China opening up gold importing to sufficient number of bullion banks to channel gold directly to Shanghai, the supply through London is falling, so the ability of London to reflect a price that reflects the bulk of global demand/supply is diminishing, while China’s gold demand growth may well be making large inroads into that ability. If global gold suppliers see that happening they will be inclined to sell their gold in Shanghai rather than in London. Likewise to get the best price, sellers [through their banks] will sell in Shanghai too. More on this if you - Subscribe to www.GoldForecaster.com & www.SilverForecaster.com – to protect against confiscation and penalties -see www.Stockbridgemgmt.com.

Silver– The silver price took flight as support buckled. It is now waiting for gold to give direction, once more. www.SilverForecaster.com]

Kind Regards,

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