Silver Market Morning

Gold Today – The gold price closed at $1,233.90 up $3.20 on Monday in New York. In Asia and London, gold prices recovered slightly to $1,235.80. The gold price was Fixed at $1,238.75 up $4.00 and in the euro at €956.933 up €1.318 while the euro was slightly stronger at $1.2945. Ahead of New York’s opening, gold was trading at $1,238.60 and in the euro at €956.74.

Silver Today – The silver price closed in New York at $18.68 up 3 cents. Ahead of New York’s opening it was trading at $18.75.

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

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

Price Drivers

There were no sales or purchases to or from the SPDR gold ETF and none to or from the Gold Trust, on Monday. 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.

The OECD has downgraded global growth in the light of the Middle East, Ukraine crisis. The U.S. growth expectations have been dropped to 2.1% from 2.5% the Eurozone to 0.8%. We hear no mention of the shift of wealth to the east or of the inroads that computer technology advances are making in employment levels which are structurally very large. We believe that the halcyon days pre-2007 were peaks that will never be reached again in the U.S. or Eurozone. This is the ‘new normal’ that we must factor into the future. However, this is not at all bad for gold, as we point to the structural developments in the monetary world and to the gold markets.

It is clear that this shift of wealth and power to the east will lead to the Chinese Yuan being a major player in the world of foreign currencies. Just as we point to the damage the loss of the sole global reserve currency will have on the dollar, so the pricing of gold, like oil has been, to date primarily in the dollar. The gold world sees the dollar price of gold as the ‘real’ price against which all other currencies relate.

The date of the opening of the International market in Shanghai has been brought forward to Thursday 18^th when we will see the price of gold made in the Chinese Yuan and eligible for purchase with offshore Yuan i.e., there will arise a need to purchase Yuan, before buying these gold contracts. This will mean selling other currencies to acquire Yuan. This is part of a much broader plan to internationalize not only the Chinese gold market, but the Yuan itself. In addition, the rise in the ‘pricing power’ of the Chinese gold markets will heavily undermine London and New York’s pricing power and lead to a more demand/supply price of physical gold, lowering the impact of traders and speculators on the short-term price of gold. In time, the Yuan price of gold will we feel, overtake the dollar price of gold, due to all these changes. 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 is relies on the gold price so much that silver fundamentals don’t count - www.SilverForecaster.com]

Kind Regards,

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