Gold Today –New York closed down at $1,770.60 up $13. Asia took it up to $1,778. London calmed it ahead of the Fix which was set at $1,774.50 and in the euro at €1,361.439. The euro weakened slightly $1.3020, down half a cent. Ahead of New York’s opening gold stood at $1,773.60 and in the euro at €1,363.15.
Silver Today – Silver rebounded overnight, to $34.78. Ahead of New York’s opening it stood at $34.67.
Gold (very short-term)
Gold should consolidate with a stronger bias, today in New York.
Silver (very short-term)
Silver should consolidate with a stronger bias, today in New York.
Price Drivers
Gold & Silver – After QE3 came out last week, in the States, China indicated it would stimulate when needed and the Eurozone got the go ahead for bond-buying, where necessary. Japan has now joined the foray and is stimulating to the extent of $126.7 billion. This caught the world by surprise but explained why gold was buoyant ahead of London’s opening. The yen is weakening as a result.
The Yen is still being treated as a ‘safe-haven’ currency even though the Bank of Japan has made it clear that they will engineer a weaker Yen for a long time now. The same is true of the Swiss Franc, with both countries placing its export competitiveness above the value of its currency. The concept of any currency as a measure of value has now departed completely. Such currency market changes leave room for gold and silver to act as that measure of value, as currencies fall against them. This also enhancse investor’s views of the precious metals being the only place to retain wealth. During the 42 years of the “currency experiment” with no gold or silver standing behind currencies we have seen the gold price multiply from $35 to $1,770. That’s over 50 times in 42 years. And there’s much more to come it seems, with the assistance of governments. If one was fortunate to get out at anywhere above $800 back in the eighties and back in at $300 that number goes up to 64 times $35. That’s better than trading and less nerve racking.
But don’t look at that as a profit figure. Look at it as a statement on the failure of the currency experiment and their ability to measure value. Now translate that into the value of savings over that period. What a harsh reality! [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]
Silver – Silver has paused and has moved back to the front foot.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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