Silver Market Morning: Nov-25-2016 -- Gold and Silver looking for a bottom!

Gold Today –New York closed at $1,189.30 yesterday after the previous close of $1,188.60 London opened at $1,190.15.

Overall the dollar was weaker against global currencies, except sterling.

- The $: € was weaker at $1.0576: €1 from $1.0526 €1 yesterday.

- The Dollar index was a weaker at 101.62 from 101.95 yesterday.

- The Yen was weaker at 113.40: $1 from yesterday’s 113.15 against the dollar.

- The Yuan was slightly stronger at 6.9198: $1 from 6.9278: $1 yesterday.

- The Pound Sterling was unchanged at $1.2454: £1 from yesterday’s $1.2454: £1.

Yuan Gold Fix

Please note that the Shanghai Fixes are for 1 gm of gold. From the Middle Eat eastward metric measurements are used against 0.9999 quality gold. [Please note that the 0.5% difference in price can be accounted for by the higher quality of Shanghai’s gold on which their gold price is based over London’s ‘good delivery’ standard of 0.995.]

Gold prices in Shanghai are $5 higher than New York’s close and $5 higher than London’s opening [allowing for the difference in the quality of gold priced in the different markets]. With yesterday seeing no physical gold sales from the gold ETFs the price differential has fallen and the arbitrage opportunity removed and global gold markets are in line. Global currency and gold markets are still taking a breather today.

LBMA price setting: The LBMA gold price setting was at $1,187.50 against yesterday’s $1,187.25. The gold price in the euro was set higher at €1,121.55 against yesterday’s €1,122.70.

Ahead of the opening of New York the gold price was trading at $1,189.25 and in the euro at €1,122.94. At the same time, the silver price was trading at $16.46.

Silver Today –Silver rose slightly to $16.39 at New York’s close yesterday from $16.35, Wednesday.

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

Silver _{(very short-term)} The silver price will look for a bottom, in New York today.

Price Drivers

We have pointed out to readers that there are two types of gold investors across the world. Those who use the gold price to try to make [currency] profits, which are then converted into one or another currency, see profit as the goal. Pork bellies would serve just as well if profits were better in that market. With Fund managers being made accountable on a month to month basis institution are measured on their profit making abilities. Markets are structured so that one can deal in a milli-second or in the future. The media is structured to have a similar profit-oriented way of reporting.

Move east of Greece and all this changes. There is little speculation in gold markets, compared to the west. [With the coming validation that gold invested in non-speculative ways is Shariah compliant] There, the gold market is the source of the preservation of wealth. The goal is to get as many ounces as possible with the currency available. So the lower the current price in the local currency the more gold is bought. Selling for a profit in currencies is not part of the plan. Gold represents financial security to be passed onto later generations. There is little trust in currencies over gold, for future value. The purpose of the gold price in currencies is simply to acquire as many ounces as possible because when currencies fail, gold is real money. For instance, in South Africa in 1975, an ounce of gold cost around R70. Today an ounce of gold in South Africa costs R16,758 a rise of 239.4 times or 5.84 times annually. And that is without any income coming in from it.

This is why global gold holdings have been moving steadily eastwards over the last few generations and into China in the last decade. A lower gold price means the east is milking more gold from the west. We do not expect much more time to elapse until the saleable gold in the west is not able to exert the downward pressure we see at present.

That’s why current prices as they fall represent great opportunities to buy physical gold. If central banks keep gold holdings as a back-stop, shouldn’t we?

When push comes to shove, it is the amount of gold ounces held that counts as the currency price of gold roars higher. - Subscribe - GoldForecaster.com - To ensure you can benefit from the future higher gold prices we will see then, you need to hold it in a manner that makes sure it can’t be taken from you. Contact us at admin@stockbridgemgmt.com to buy physical gold in a way that we feel, removes the threat of it being confiscated. We’re the only storage company that offers that! – We’re Shariah compliant!]

You will note that the cancellation of certain Rupee notes in India and now some American banks in Australia becoming “cashless”, that an exercise in controlling client’s funds is underway. Removing cash as an alternative brings total control to banks and governments of money. If this continues, gold will be the only alternative to banks as cash will not be available. No doubt an assault on all competition to such control will then follow. Gold will have to be prevented from being an alternative as it was in the U.S. in 1933.

Gold ETFs – There were no sales or purchases into the SPDR gold ETF or Gold Trust yesterday, leaving their respective holdings at 891.567 tonnes and 205.24 tonnes. Since January 4^th this year, 295.798 tonnes of gold has been added to the SPDR gold ETF and to the Gold Trust.

Silver –Silver is retreating with gold now but not as fast.

Regards,

Julian D.W. Phillips

GoldForecaster.com | SilverForecaster.com | StockBridge Management Alliance [Gold Storage geared to avoid its confiscation]

About GoldForecaster.com Service:

We focus on keeping our readers on top of the emerging Gold bull market with a global fundamental and technical overview. Members gain access to our comprehensive, weekly report with the latest Gold market news, price analysis, along with coverage of other key markets. Economic and monetary topics are covered as well, along with many other influences that have an impact on the Gold market.

Try a $99 trial subscription and gain immediate access to the latest weekly Gold Forecaster Newsletter!