Julian Phillips’ take on the current gold and silver markets and geopolitical effects impacting on them
There was a large sale of gold from the SPDR gold ETF on Friday of 5.373 tonnes but there were no sales or purchases of gold into or from the Gold Trust on Friday. The holdings of the SPDR gold ETF are at 744.401 tonnes and at 164.71 tonnes in the Gold Trust. This size sale would ordinarily have hurt the gold price in New York, but it didn’t, as you can see. This confirms underlying strength. The dollar weakened with the dollar index falling to 98.22 after its high of over 100. The euro recovered to $1.08 in Asia, slipped back to $1.0772 ahead of London’s opening then rose to $1.0887.
New York closed Friday at $1,183.20 up $12.90. Asia held it a dollar below that level before London opened. So far the new way of Fixing does not appear to have produced any dramas and the ‘runs’ have gone well. Of course true transparency would mean the participants disclosing details of their in-house deals which were ‘netted’ out before the participants did an overall ‘netting out’. This morning the “LBMA gold price” was set at $1,181.40 up $9.65 with the euro price down nearly €10. Ahead of New York’s opening, gold was trading in London at $1,181.60 and in the euro at €1,085.73.
The silver price closed at $16.73 up 60 cents. Ahead of New York’s opening it was trading at $16.70 .The silver price showed how quick it can turn up as support held firm.
The widening of support for the AIIB [the Asian equivalent of the I.M.F./World Bank] was not the only piece of Asian news last week. Something considerably more dramatic took place, something we at Gold Forecaster and Silver Forecaster have been pointing to for several years now as a structural change in the world monetary order. So far it has not been reported in the media or gold world. Once it happens, gold and silver prices will see a major change in their fundamentals. We will expound on this once we have first informed subscribers.
As to Greece, another stressful week for the country takes place. The country will run out of money by the end of April. This news alone should empty the banks of deposits. By blocking the exit of capital now, they may be able to salvage a viable banking sector, but will they? While the credit position of Greece may be a great emotional issue, we would have expected the Greek government to have accepted the reality of their situation and the fact that their debt is un-repayable and already exited the E.U. Clearly political face saving is going on as the government did commit to staying in the E.U. An exit must have the element of surprise to stop capital leaving, so could happen any time now.