-- Posted Thursday, 13 May 2010 | | Source: GoldSeek.com
"Gold getting comfortable at nearly $1,340, holding up there in Asia. Silver is following at $19.5”
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Gold - Very Short-term
The relationship with the € is sidelined or ended. After all, why should it move with the € now still falling at $1.2590? Gold and silver are still robust. As shock gives way to calm, prices may rest 
today or slip, slightly, a healthy reaction in these markets.
The precious metal prices are made in London, not on COMEX. This may surprise most observers and investors, but it is the physical market that makes the price, not the paper markets.
[Gold Forecaster & Silver Forecaster newsletters will feature; “Gold – A Means of Exchange? - A Measure of Value?” and “Does defending a currency or a government bond really work?” and “Does COMEX determine Gold & Silver prices?” - [Subscribe through www.GoldForecaster.com ]
ETFs’ jumped another 16 tonnes, yesterday to the tune of, “and what do you get, another day older and deeper in debt!”
Silver – Very Short-term
Our Silver Forecaster [Subscribe through www.SilverForecaster.com] forecast that if silver broke $18.50 there would be little in its way. We, too, forecast that silver would outperform gold over time. Currently it is possible for it to hit $29 on this run alone. Its quality as money is starting to move into the picture as investment demand in the Silver Trust alone jumped 200 tonnes over the week. It is the 'poor man's gold' that has been sold off in the last decade and more by 'official' [central bank] sellers, Russia, India, China. This selling has now stopped. Even though silver production is rising, investment demand, alongside industrial demand, is growing quickly, eliminating what remains of lack of demand from photography. This is being replaced by demand from electronics, medical and general health industries.
Please bear in mind that silver is consumed and not recovered from these sources. Until newly mined silver grows in large volumes we believe that silver demand will outpace production, thus pointing to a better future for silver than for gold.
The criminal investigation into the activities of JP Morgan's in the silver market, where commentators [such as GATA] have for years been accusing them of market manipulation. If right, then JP Morgan has a massive short position which will have to be closed. If that has to be done with physical silver the silver price will leap to our target level if not higher and quickly [ahead of their exposure?].
Silver's price will be driven by physical demand not by the futures market, so ETF's like the Silver 
Trust will be good indicators of that demand.
Gold Price Drivers
Gold & Silver prices remain driven by macro economic doubts about the monetary system. Promises, or minimal action are not enough any more. Watch this space!
Regards,
Julian D.W. Phillips – www.GoldForecaster.com
-- Posted Thursday, 13 May 2010 | Digg This Article
| Source: GoldSeek.com
