Silver Market Morning: June 22, 2012
Gold Today – Gold closed in New York at $1,566.30 down $40. London held it there at the opening. The Fixing in London today was set at $1,571.5, higher than market expectations. In the euro it was set at €1,251.793. Ahead of New York’s opening gold stood at $1,569.35and in the euro, €1,250.03 while the euro was at €1: $1.2554.
Silver Today – Silver plummeted nearly a dollar in line with gold in New York to $26.92. Ahead of New York’s opening at $26.92 down a dollar on yesterday
Gold (very short-term)
Gold may well consolidate at these levels, today in New York.
Silver (very short-term)
Silver may well consolidate at these levels, today in New York.
Gold & Silver –We placed gold and silver together today because what is happening in the market is happening to both, as well as nearly all other markets. We are seeing shades of 2007/8 again as we watch broad market retreats as asset values deplete in the face of falling confidence in developed world financial markets. A broad based loss of confidence in these markets is being well expressed and was summarized by Christine Legarde, head of the I.M.F. when she said that Europe needs ‘greater monetary integration in terms of banking and Sovereign debt markets’ if the euro is to be saved. Several world financial leaders have given only months for the euro to be saved now. [In this climate politicians can be viewed as saviors rather than interferers, so we may see action?].
If the euro falls, then it will drag most currencies a long way down with it. This in turn will ripple into the Fed’s fear of deflation. [We will be producing an article on this in our newsletters shortly.] In essence runaway inflation is triggered by deflation turning into something far worse. We are of the opinion that central banks fear deflation considerably more that inflation. Gold and silver are and will, fall with other markets, initially, but less than other markets and will recover faster and rise as they did in 2009 to new heights.
It would be wise of all investors to look away from the markets now and look at the state of investors and their capabilities as these stresses ripple through.
The fall in the markets is not of such great interest to gold investors in the emerging world. What is pertinent to them is the fall in the prices of gold and silver. Having been fearful of buying gold and silver at prices that will soon prove too much they have stood back from the markets. They may well see the current Rupee gold price fall as being the first good buying opportunity they have seen for some time.
Julian D.W. Phillips for the Gold & Silver Forecasters