Indications show silver is ready to rise faster than gold

The silver price was restrained yesterday, but indications are that it is ready to rise faster than gold now, says Julian Phillips.

Gold Today –New York closed at $1,326.30 down $3.10 on yesterday. Asia took it higher to $1,331 and then London held it there before Fixing it at $1,331.50 up $9.25 and in the euro at €1,002.7 up €6.00. Ahead of New York’s opening gold was at $1,333.40 and in the euro at €1.005.01.

Silver Today – Silver closed at $19.72 down 12 cents in New York yesterday. Ahead of New York’s opening it traded at $19.97.

Gold (very short-term) 

The gold price is close to moving strongly either way, in New York today.

Silver (very short-term) 

The silver price is close to moving strongly either way, in New York today. 

Price Drivers

Gold & Silver – There were no sales from the SPDR gold ETF on Tuesday leaving the total of the SPDR gold ETF and the Gold Trust at 1,106.205 with the SPDR gold ETF at 927.355 tonnes, while the Gold Trust gold holding stood at 178.85 tonnes.

We note that gold moved up in both the U.S. dollar and in the euro, a pattern that appears to be being established now.

The news of the day is that the Fed will speak once again, today as a re-working of growth figures is being undertaken. The new formula will now include the movie industry and others. Markets are likely to treat this formula revising with scepticism, because even if the numbers look better, it won’t change the underlying realities. A growth figure of just 1% is expected. Consumer confidence levels have fallen in the last month.

Inflation is dropping to that area too, so we expect a comment about defeating ‘disinflation’ [which translated means less than deflation, but to be combated]. The reality is that growth in the U.S. remains fragile after nearly six years of fighting it with QE. The Eurozone is headed faster that way with a recession underway there. So far from moving towards a tapering we expect implications suggesting a lengthening of QE. This will be positive for gold. [Subscribe to our newsletters at and] The air of economic uncertainty has if anything grown larger. But we are bombarded by interpretations that emphasize the positive sides of the economy. Investors must decide just how accurately these reports reflect the realities of economies.

We have another month of the ‘summer doldrums’ left as the developed world remains on holiday and India is busy in their monsoon and crop growing phase which is going to be a superlative one for farmers, ahead of the start of the ‘gold season’. In the past decades this period saw the year’s lows on the gold price, but in recent years we have seen gold hit its highs as economic and currency factors kicked the gold price into action. It was this time of the year that the “credit crunch” began.

Silver – The silver price was restrained yesterday, but indications are that it is ready to rise faster than gold now.


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

Global Gold Price (1 ounce)



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