Silver Market Morning

Gold Today –New York closed at $1,198.30 down $14.30 before Asia took the gold price up to $1,206. In London’s the gold Fixing was set at $1,203.25 up $6.25 and in the euro at €975.239 up €12.556 while the euro was a cent weaker at $1.2338. There were two sellers at the Fix selling 22,000 ounces and two buyers buying 26,000 ounces. Ahead of New York’s opening gold was trading in London at $1,204.00 and in the euro at €976.72.

Silver Today – The silver price closed at $16.45 down 2 cents, in New York. Ahead of New York’s opening it was trading at $16.50.

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

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

Price Drivers

We believe that the influence of traders and speculators on the gold and silver prices is now waning, as physical stocks of gold in London and New York, available for trading, are at very low levels. So the prospect of heavy short positions on COMEX being successful is dropping, as is the likelihood of speculative physical gold selling. Hence the consolidation process now underway should continue. We have mentioned this in the past, but feel it necessary for you to know that this change will have a structural and lasting effect as we move into 2015. We expect 2015 to be a year of volatility and uncertainty where structures we have been so used to since 1985 will start to change in our financial worlds.

A major time bomb is certainly to be the debt burdens most nations now have. We have accepted the massive explosion of debt and now accept that these debts are unlikely to be repaid ever. The only alternative is to lift inflation enormously. With nations globally taking monetary action to lift inflation, so far unsuccessfully, the growing expectation that the world will see deflation, will make such debt burdens too heavy. So, structurally, gold will be looked at in the future as both cash and an asset.

With a growing political and economic divide in the world between east and west, financial instability could cause major fractures too. All in all, the financial future that awaits us all will favor gold and silver in other structural ways too. [Subscribe to www.GoldForecaster.com & www.SilverForecaster.com] The focus of attention will turn towards both the dollar and the oil price from now on.

There was a purchase of 2.391 tonnes a reversal of the last two days sales, almost precisely, likely from the same seller. The Gold Trust saw a seller of 0.03 of a tonne. The holdings of the SPDR gold ETF are at 720.o18 and at 161.77 tonnes in the Gold Trust now.

A pertinent question we will ask of 2015 is, “Will the dominance of the speculator and trader over precious metal prices be heavily reduced, leaving their prices reflecting physical long-term demand?” If so, we would expect a price recovery beyond most investor’s expectations.

Silver– The silver price holding ground with gold but should see wider swings either side. www.SilverForecaster.com

Kind Regards,

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