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Silver Market Morning

Gold Today –New York closed at $1,258.50 up $30.50 as the euro continued tumbling. In Asia and early London the gold price lifted to $1,260.20 with the euro 1.3 cents down at $1.1625. The Fix saw the gold price set at $1,258.25 up $23.00 and in the euro, at €1,082.366 up €26.96 while the euro was ¾ of a cent weaker at $1.1625. Ahead of New York’s opening gold was trading in London at $1,258.00 and in the euro at €1,084.48.


Silver Today – The silver price closed at $16.86, 3cents higher. Ahead of New York’s opening it was trading at $16.90.


Gold (very short-term) The gold price will consolidate with a positive bias, in New York, today.


Silver (very short-term) The silver price will consolidate with a positive bias, in New York today.


Price Drivers

There were purchases of 9.919 tonnes of gold into the SPDR gold ETF and purchases of 0.58 of a tonne of gold into the Gold Trust yesterday. The holdings of the SPDR gold ETF are at 717.51 and at 163.62 tonnes in the Gold Trust. This reflects a flowing tide is starting.


In 2014 we forecast that the gold price would be ‘event driven’ and yesterday’s removal of the ‘cap’ on the Swiss Franc’s exchange rate was one of several we will see this year. This will not be the worst one! We cannot cover the ramifications properly in this daily report but will do so in depth in the newsletter [Subscribe to &].


What we can say here, is that next week’s potential announcement of QE in the E.U. has been signaled as a time when the euro will fall much more. The Swiss have just said they don’t want to go down with it, but now prefer to align with its trade weighted index and/ or the U.S. dollar. The imposition of, what the Swiss hope will be, prohibitively negative interest rates, will in their view weaken the Swiss Franc and prevent it being used as a ‘safe haven’.


We are of the opinion that yesterday’s action is not so much about the Swiss Franc but about what’s coming for the euro. The euro is not a soft satellite currency. It is a major ‘currency area’ in itself, namely a critically important ‘hard’ currency that comprises around 20% of global reserves, so its fall shakes the entire currency world. Yesterday’s currency tsunami could pale, next to what’s coming!


For gold, the importance of the events is that central banks can no longer provide stability, so volatility is here to stay, across the world as confidence in the, so called, monetary system weakens. ‘So called’, because it is in disarray now, as deflation has moved from the horizon to, just a small way, upwind. As a counter to the currency system’ gold will continue to benefit.


Silver– The silver price is running as forecast.




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


Global Gold Price (1 ounce)















Rs. 78,010.05

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