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Gold Rising But Silver Soaring Higher…



Stock markets in New York, Asia, and London are jumping for gold.

The Markets are Golden

On Wednesday, April 20, 2016, gold closed at $1245.80.

Across the pond, gold opened at $1258 in Asia on Thursday morning. London was not to be outdone and set the LBMA price at $1257.65. This is an increase of $9.90.

The dollar has also been on the rise. It closed at 94.05 on Wednesday and now sits up forty cents at 94.45. It has been pushing back against the euro which has dropped from $1.1315 down to $1.1366 on Thursday.


Gold and Euro: A Synergy

Gold price set in the euro also rose up from 1,097.57 on Thursday, up to 1,111.49.

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Waiting on Shanghai Fixings

Once the Shanghai Gold Fix releases its report based on yesterday afternoon’s stock market results, we will pass the information on to you.

We know that gold investors across the world are waiting on the edge of their seats to find out what the difference between London and Shanghai will be if any difference is to be found. Why it has taken so long to be reported is a mystery. A mystery that Shanghai is also waiting for answers.

Dollars, Shanghai Gold, and Yuan

To obtain the price in dollars, take the Shanghai Gold Fix price and divide it by 32.1507465. Multiply by 1000 to find the price per gold ounce in Yuan.

Divide the Yuan price by the dollar to Yuan exchange rate at the time of the Fix.

Gold was at an all-time high of $1,267.30 before the opening in New York. The euro was at 1,117.30.

Short Term Gold and Silver

On Wednesday, silver closed up in New York at $16.97. Prior to opening this morning, silver was already at $17.60.

We expect the price of both gold and silver to continue to rise at a steady pace in New York today.

Gold Breaking Daily

Despite stagnant bull selling, the price of gold continues to climb higher nearly every day. The chart below gives a good indication that there is remarkable strength in the gold price. The dollar is also holding steady.

Interest Rates Not Expected to Rise

Mr. Mario Draghi is the president of the European Central Bank and he is expected to make a statement today. We are not expecting to hear that interest rates will rise. This is due to the stunted economic growth and inflation as well as a supply and demand imbalance in the stock markets.

The future appears to be laden with shadows as company margins continue to decrease, turnovers remain low, and Spain continues its lack of cooperation with regards to the IMF-recommended structural changes. Short term interest rates may increase as a part of the economic situation “tightening up”.

The U.S. Fed is looking around the world before adjusting their rates, which in turn affects the decisions made by the European Union.

Debt Deepens Around the World

China’s corporate sector has been of increasing concern as debt levels across the world are on the rise. The central bank governor of China has warned that corporate debt, which is at 160% of Gross Domestic Product, is too high.

With the fall of the Chinese stock market last summer, a lot of money was lost. People in China are now putting their money into the corporate sector to avoid the high-interest rates in the stock market. This means that Chinese stocks have been suffering.

And yet gold imports to China have increased by over 700% in the last six years. As well, the silver market in the Shanghai Futures Exchange is projected to increase seven-fold within the next year.

Gold ETFs Two Day Changes

The SPDR now holds 805.032 tons of gold following the sale of 7.43 tons over the last two days. In that same time, the Gold Trust sold 0.48 tons to drop their holdings down to 187.56 tons of gold.

Silver Still Soars

In the last two days, silver has increased by nearly 4%. It still remains behind gold.

Although gold and silver are generally used as a currency replacement, silver has tended to show less security than gold and therefore it is considered to be a riskier investment. It has also historically been less available on the stock market because of its industrial role.

However, investors in both retail and institutions are closely watching silver’s performance, especially as it peaked at $50 per ounce. Which, by the way, is still less than half of what it was recorded in February 1980.

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