Silver Market Morning

Gold Today – The gold price closed down at $1,160.10 down $5.70 in New York on Wednesday. London took it down to $1,156 ahead of the Fix. It was Fixed at $1,161.00 down $2.25 and in the euro at €930.811 down €3.601, while the euro stood stronger at $1.2473. The volumes of net gold traded were two sellers selling 56,000 ounces and two buyers buying 40,000 ounces before the pro-rata process kicked in. Ahead of New York’s opening, gold was trading at $1,163.20 and in the euro at €932.76.

Silver Today – The silver price closed in New York at $15.67 down 7 cents. Ahead of New York’s opening it was trading at $15.77.

Gold _{(very short-term)} The gold price will consolidate in New York, today.

Silver _{(very short-term)} Silver will consolidate, in New York, today.

Price Drivers

In New York there were sellers of 1.793 tonnes of gold from the SPDR gold ETF but none from the Gold Trust on Tuesday. The holdings of the SPDR gold ETF were at 722.667 tonnes and in the Gold Trust at 160.42 tonnes. The euro is also slightly weaker today at $1.2473 down from $1.2488.

After many years of ridiculing people who accused the major banks of manipulating the markets and of price rigging [such as GATA] it turns out that they were right. It seems this rigging was done not only for the bank’s own accounts but those of individual dealers, showing that this manipulation was rampant. Will the fines imposed alter the levels of integrity of the banks and the dealing department, including the precious metals division? With so many major fines on both sides of the Atlantic levied against the major banks in the last few years, the reputation of being banksters will take not simply time but a clean record for a generation to prove they have changed. Will they? We have seen changes in the London Gold and Silver Fixings, but the strange behaviour of the silver price following the gold price so persistently, despite the different fundamentals, begs the question “Is the silver price a true reflection of silver demand and supply alone?”

Brent crude fell to a new four-year low below $80 a barrel. This is down from a peak of $115 from June. West Texas Intermediate crude fell to a two-year below $77 a barrel. This is more over-supply from producers attacking new U.S. suppliers than heavily falling global demand and acts as a support for growth not an obstacle to it. Saudi Arabia, in particular, is pushing that price down, through oversupply. There is only an indirect relationship with gold and silver. [Get the bigger picture - Subscribe to www.GoldForecaster.com & www.SilverForecaster.com – to protect against confiscation and penalties -see www.Stockbridgemgmt.com ]

Silver– The silver price will continue to be driven almost exclusively by the gold price www.SilverForecaster.com

Kind Regards,

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