Silver Today - Silver closed at $27.50 in New York and rose in London opened at $27.53. Ahead of New York’s opening it stood at $27.47.

Gold _{(very short-term)}

Gold is looking to consolidate around current levels, today in New York.

Silver _{(very short-term)}

Silver is looking to consolidate around current levels, today in New York today.

Price Drivers

Gold – Despite the euro continuing to weaken, the gold price bounced back from the low point of $1,518 to $1,550 where it is now looking to consolidate. Short-term traders are cautious at these levels. Many have interpreted the currency moves as a strong dollar, rather than a weak euro [weakening the currencies of the Eurozone’s trading partners alongside it]. Would it be right to see the gold price simply moving with the euro [rather than a counter to the dollar]? We would argue that gold is a counter to all currencies, which is the reason it is held in central bank reserves today] The implications are that it will rise in the euro too, when it does. To link it myopically just to the dollar would not explain its rise from €300 to today’s €1,200. It is this larger perspective that will account for its future prices in the world’s different currencies.

The lackluster Indian buying we have seen since the start of the jeweler’s strike there has been compounded by the weakening of the Indian Rupee. Yesterday the Reserve Bank of India stepped into the market to defend the Rupee. Currently it stands at Rs.54.50 against the U.S. dollar having fallen in the last year from Rs.42 to the U.S. dollar. Their intervention into the Rupee market may halt the rise of Rupee gold and silver prices and reflect only the change in the dollar price of gold. This would make the Rupee gold price conform much more to the international price of gold as seen in the dollar and the euro. We are seeing a pick up in Indian demand as the marriage season comes to life this month and perhaps because of the stabilizing of the Rupee?

Silver – Silver has been a bit slower to respond to the change in the gold price in the last day as investors in the Americas take a ‘wait and see’ attitude to the gold price. [To follow our weekly commentary, please subscribe to our newsletters at http://www.parkavenumis.com/newsletter/

We are  pleased announce today the launch of our mobile version of our online Rare Coin and Bullion website to mobile site m.parkavenumis.com Inspired by an increasingly mobile society, this development is a natural progression in serving you better.

As a preferred on-line subscriber if you download the site you will be entered into a drawing for a US Gold coin each month.

We’re constantly striving to stay at the forefront of technology.  Our website parkavenumis.com originally launched in 1995 and we consider ourselves a pioneer using the world wide web,  In order to help serve you as an on-the-go customer we understand that rare coins and precious metal markets move quickly, and you need to stay up to date – where ever you may be at the time.  The idea of a mobile website just makes sense.  Get instant access anytime using your smart phone!  Stay on top of precious metals markets and have access to thousands of coins right at your fingertips.

Notable features of the Park Avenue Numismatics, mobile website, m.parkavenumis.com - include:

<!–· Access from any Internet-Capable Cellular Phone: The mobile site was designed to give Smart Phone users the ability to easily access spot pricing, product pricing and information, picture viewing capabilities, as well as, current news, articles & upcoming coin show schedule information. In addition, existing users have instant access to their Park Avenue account or Open a new account. To this end, the mobile website has been designed for ease of access from any internet-capable cellular phone, including iPhone, Blackberry, Android and Windows phones, without the need to download a program or application.

<!–·Access to Inventory with real time sync: Striving to add to the growing list of mobile-friendly websites and create a better customer experience, Park Avenue Numismatics includes an easy-to-use inventory function on our mobile website. For ease of navigation, this feature allows customers to find products by browsing multiple coin categories. Each time when new inventory is uploaded, Mobile site will sync and update the categories with products

<!–·Real Time Purchasing: The mobile site is designed to give Smart Phone users the ability to purchase with a click of button and mobile security SSL to encrypt their credit card information for privacy.

<!–·Live Spot Pricing: Rare Coin and Bullion investors closely watch spot prices, and Park Avenue Numismatics is committed to helping investors make smart purchases. The new mobile website includes a feature which extends this information on a moment-to-moment basis. A live feed provides viewers with up to the minute precious metals quotes instantly.

<!–·Click-to-Connect & Click to email: When the time and price is right to make a purchase, Park Avenue Numismatics mobile site makes it easy with a Click-to-Call and Email feature. With the click of one button, customers can be instantly connected to our Numismatic Advisors, who are ready to assist with the order or send an email for more information

To download go to m.parkavenumis.com or use the fast QR Code below for a shortcut to the mobile website.

Scan the Barcode to activate m.parkavenumis.com

CR Code to active m.parkavenumis.com

Scan the Barcode to activate m.parkavenumis.com

Gold Today – New York closed at $1,558.60 down $23 and held there in Asia as the selling seemed to have stopped for the moment. The euro stood at €1: $1.2863. This morning in London, gold Fixed at $1,559.00 down $5 and in the euro at €1,213.607 the same as yesterday. Ahead of New York’s opening it started to bounce and stood at $1,559.55 and in the euro, which also continued to slip,  €1,212.90 while the euro was at €1: $1.2858.

Silver Today - Silver closed at $28.23 in New York and rose in London opened at $28.32. Ahead of New York’s opening it stood at $28.33.

Gold _{(very short-term)}

Gold will look for a ‘floor’ level at current levels, today in New York.

Silver _{(very short-term)}

Silver will look for a ‘floor’ level at current levels, today in New York today.

Price Drivers

Gold – Short-term traders, keenly aware that the short-term Technical picture is signaling that downside risks have shrunk to very small levels. Consequently, we believe that a search for a ‘floor’ is now underway in the short-term. Let’s face it the news on the Eurozone could not be worse, so what comes next? In the minds of everybody Greece is likely to exit the Eurozone and possibly the euro. Spain is more than likely to ask for a bailout. Spain, Portugal, Ireland Greece and possibly Italy could exit? Will this mean that the E.U. collapses? Or with these out of the way will it and the euro be much stronger? With gold moving with the euro and now steady in the euro itself, will the news get better and take gold with it? These are questions that face the gold market and the silver market too, simply because they have been all moving the same way.

Meanwhile, the Rupee continues at weak levels, but the gold price in the Rupee is now at a recent low. We have not seen Indian demand in any significant quantity so far. In China, the People’s bank of China is easing the reserve requirement on banks to facilitate lending and to boost growth.

We are of the opinion that markets moods, including those in the gold and silver market are on the brink of a short-term change.

Silver – After the fall to $28.30 the silver price is stabilizing at these levels. Is a ‘floor’ now being seen? While silver is not considered by central banks as a monetary metal, it is moving as though it is, alongside gold. So we should keep an eye on these factors when gauging where silver is headed. With the Eurozone now in overall recession and talk that the U.S. may well slip into a mild one itself, we do see politicians and central banks turning back to monetary easing, which will benefit gold and silver! [To follow our weekly commentary, please subscribe to our newsletters at http://www.parkavenumis.com/newsletter/

Silver Today - Silver closed at $29.20 in New York, the recovered slightly to $29.30 in early London time. Ahead of New York’s opening it stood at $29.00.

Gold _{(very short-term)}

Gold will again prove volatile again and look for a ‘floor,’ level either way, today in New York.

Silver _{(very short-term)}

Silver will again prove volatile again and look for a ‘floor,’ level either way, in New York today.

Price Drivers

Gold – Short-term traders still held control of the gold price, but there is evidence that investors, be it central banks, or Chinese demand came in to pick up bargain offerings at prices below $1,600. As these investors are not price chasers, prices did not bounce vigorously. This is the changed shape of strong demand now.

As 10-year Spanish bonds remain at unsustainable interest rates above 6% we hear that a leading Spanish Bank has been partially nationalized as it is overwhelmed by bad debts and a stagnant property portfolio. We expect Regional governments to also, in time, report excessive debt that could precipitate requests for bailouts from the E.U.

New elections are now expected in June in Greece, as a new government remains out of reach there. Tranches of bailout funds are expected to be withheld until the way forward is clarified. A shift of power from creditor to debtor may occur shortly, as the creditors stand to lose so much if Greek defaults and walks away from the E.U. So expect some precipitous negotiations in June!

Without inter-central bank support for the euro we would have expected the euro to be closer to the €1: $1.20 level than the current €1: $1.30 level now.

Silver – The silver price recovered in London to $29.15 but has not bounced enough to inspire confidence yet.

Now for the short-term still, both metals are showing a downward direction. Has silver found a floor? Is it in danger of collapsing? [To follow our weekly commentary, please subscribe to our newsletters at http://www.parkavenumis.com/park-ave-news/

Silver Today - Silver was$29.50 in New York, but fell in Asia and London to $28.83. Ahead of New York’s opening it stood at $28.86.

Gold _{(very short-term)}

Gold will prove volatile again and look for a ‘floor,’ level either way, today in New York.

Silver _{(very short-term)}

Silver will prove volatile again and look for a ‘floor,’ level either way, in New York today.

Price Drivers

Gold – The gold price fell victim yesterday to the resurgence of the Eurozone crisis. The Greek elections led to even the E.C.B. indicating that Greece may leave the Eurozone by the end of the year. This also opens the way for Spain to follow too, whose debt rates have climbed above 6% now.

The euro broke down through the 1: $1.30 level as a consequence, pulling gold down through $1,600. As we have said many times before there is no correlation at a fundamental level between the euro’s value and gold. But traders in the market have made the link and it holds sway on a daily basis. Now the gold price enters a period of uncertainty but with the gold price capable of weakening further.

Of particular note is the continuing weakening of the Indian Rupee. This keeps gold price too high for investors at the moment, at Rs.53.75: $1.  [To follow our weekly commentary, please subscribe to our newsletters at http://www.parkavenumis.com/newsletter/

Silver – The silver price broke down over 5% in the last day to $28.75. Before that the silver price Fixed in London at $28.77, after following gold down. There is even less correlation between the euro and the silver fundamentals, but that’s what traders are reacting to.

Now for the short-term at least, both metals are showing a downward direction. The next most important question for traders and investors to ask is how far will it fall? Can traders drive the gold and silver prices further down?

Silver Today - Silver was$30.07 in New York, but fell in Asia to $29.70. Ahead of New York’s opening it stood at $29.60.

Gold _{(very short-term)}

Gold will prove volatile again, capable of going either way, today in New York.

Silver _{(very short-term)}

Silver will prove volatile again, capable of going either way, in New York today.

Price Drivers

Gold - The Indian Parliament has recanted on its increase of duties of gold imports. This was expected as the Jeweler’s strike there was called of once this indication was given. This has cleared the way for the industry to get back to what it was before the proposal was put forward. However, the level of the Rupee continues to be the deterrent to buying there. At Rs.53.1255 gold prices in India continue to be close to record highs. In the eyes of Indian investors as the gold buying ‘season’ winds down there, prices need to stabilize at a level long enough to convince those buyers that a ‘floor’ has been found. Once Investors believe that a ‘floor’ is there, they will return to the market. However, a weak Rupee is the cause of record gold prices not demand. Until they realize that Indian investors will continue wary of buying. [To follow our weekly commentary, please subscribe to our newsletters at http://www.parkavenumis.com/newsletter/

Silver – The silver price held over $30 by the skin of its teeth overnight, after following gold down. But in London’s morning silver slipped through that barrier again to trade at $29.67.

The silver price continues to follow gold, wherever it shall go. As a consequence, when the very large seller in the futures market and in the quietest time of gold’s day comes in to dump gold the price sags. We believe that this may not last too long as central bank buyers continue to pick up this gold as the price falls. This makes a closing of short positions very difficult without causing the price to move higher. It looks like traders versus central bankers here. Traders don’t fight crusades.

Both metals are at the point where no clear direction is being given, increasing the risks to both traders and investors. This is no time for widows and orphans!

Silver Today - Silver was$30.14 before Lo0ndon’e opening. Ahead of New York’s opening it stood at $30.30.

Gold _{(very short-term)}

Gold will prove volatile, with an upside bias, today in New York.

Silver _{(very short-term)}

Silver will prove volatile, with an upside bias, in New York today.

Price Drivers

A tidal change in the path of European politics took place over the weekend under the guise of focusing on growth instead of austerity. With the Socialists winning in France and the anti-austerity parties taking a grip in Greece, the Eurozone is suddenly back in deep crisis mode. With the euro opening the week below €1: $1.3 the markets are very unhappy at the prospects for the Eurozone debt crisis. If the far left or far right in Greece take power, they will want to renegotiate the bailout package. [Please note, the dollar is weakening  against other hard currencies, too]

The discussion should not be linked with the state of Eurozone economies but with the State of national debt management. The dangers lie solely in the area of financial management and debt management. A softening of the current austerity path to easier conditions will undermine the stability and value of the euro. The euro is therefore more than likely to weaken against the gold price as we are seeing now.

Already the weaker nations of the Eurozone have seen a massive flight of capital from their banks and in the growing trade deficits there. Add to that the national debt situation and their crises have morphed into a total Eurozone crisis as politics and finances are moving to a confrontation of far greater proportions than we have seen before. It is in this environment that investors run to cover to safer places with their wealth. Silver alongside of gold will be among the choices made by a far wider type and more numerous investor base. [To follow our weekly commentary, please subscribe to our newsletters at http://www.parkavenumis.com/newsletter/

In short, over the weekend, we have seen a gear change in the Eurozone debt crisis, but a move away from austerity to growth, but at what cost? This has not been a good weekend for the euro, but a good one for gold and silver.

Gold _{(very short-term)}

Gold’s trading range today could go either way without giving clear direction, today in New York.

Silver _{(very short-term)}

Silver’s trading range could go either way without giving clear direction, in New York today.

Price Drivers

Another down day for gold as traders feel a soft tone in gold and silver prices.

On the silver price its falls have been greater than we have seen in the gold price, as it breaks down through the $30 level. Is this a reflection of its industrial demand? No. Its price is driven by traders and investors in the Silver Trust. Traders are by far the greatest influence over the price and they have a rock solid belief that silver should move with the gold price. The recent past has shown silver to have much more resilience on the downside movements than gold and to display much more vigor on the upside.

Bear in mind that the industrial applications for silver have moved from a focus on discretionary spending that photography represented to more needed applications in the electronic and medical fields. This makes such demand more robust in a downturn. We don’t see this demand diminishing in the near future.

Will it collapse if gold drops? No, we think not. Asian investment demand has grown as the gold price has risen because silver is an alternative to gold there and more affordable to a much wider, poorer market. However, it will be still be driven by traders in the short-term and its price will reflect day-to-day sentiment.

Traders have managed to link the gold price to the state of the U.S. economy and will continue to do so for the immediate future.

To follow our Daily commentary, please subscribe to our newsletters at http://www.parkavenumis.com/newsletter/

Silver was$30.65 at the close in New York but opened in London at $30.41. Ahead of New York’s opening it stood at $30.38.

Gold _{(very short-term)}

Gold’s trading range should continue to narrow, with a weaker bias, in New York.

Silver _{(very short-term)}

Silver’s trading range should continue to narrow, with a weaker bias, in New York.

Price Drivers

Each day we watch the gold price pressed down in Europe then lifted in New York after some gyrations both ways. This is why we have been highlighting the way the short-term factors have been clashing with long-term factors in a massive consolidation phase punctuated by short-term consolidation periods.

The two forces are now closing in on each other, taking gold and silver prices to the tip of a pennant formation that will take gold to a breakout, one way or the other in a very strong move. However, each day we may see price feints and give us small, dummy moves that mislead investors into thinking that it is happening.

The short-term factors are the Eurozone crisis events, regular jobs figures in the U.S. and the steady drip of information that we receive each day. The long-term factors are central bank and Asian demand.

But the clash between the two is not simply their weight of buying and selling but the difference between the short and long term buyer’s motives in doing so. Short-term traders are driven by profits either way. If they are to be made on the short side or the long side, so be it. That’s the way they will go. Hence, if long-term investor’s weight of long-term buying pushes traders out of their positions, traders will switch direction and go with them. The position now is that the last few weeks and months the weight of buying and selling has been coming into balance. But more is at stake then simply short-term profits, the establishment of direction for the next year and more, will be decided by the next big move.  Will buying sag or will it rise? Whichever way it goes, the move could happen at any time!

Silver was$30.97 at the close in New York but opened in London at $30.87. Ahead of New York’s opening it stood at $30.60.

Gold _{(very short-term)}

Gold’s trading range should continue to narrow, with a slightly weaker bias, in New York.

Silver _{(very short-term)}

Silver’s trading range should continue to narrow, with a slightly weaker bias, in New York.

Price Drivers

Investors should continue to keep their eyes on the Indian Rupee, which is now almost crossing the Rs.53 to $1 level, keeping gold prices in India rising. Indian investors relate to Rupee prices of gold not U.S. dollar prices. If they were to see gold in U.S. dollar prices they would be buying now. Of course, it is the weakening in the value of the Rupee that should be prompting Indian investors buying, but this awareness is not the current perception there. What this shows us is just how easy it is to lose sight of the ball in the gold market. Most of our readers relate only to the dollar price of gold or secondly to the euro price. However, the gold price is a measure of the value of currencies and not the other way around where currencies measure gold. But with Indian demand reaching over 800 tonnes in a good year, out of 2,800 tonnes of newly mined gold supply annually [28%] this feature of the gold market is important. [To follow our weekly commentary, please subscribe to our newsletters at http://www.parkavenumis.com/newsletter/

While many believe that Chinese demand should be thrown in with Asian demand, it is very different from Indian demand in its nature. Chinese gold demand comes with no religious connotation, no family obligations to provide financial liquidity and security to daughters getting married but with the main common denominator of saving real money. Both types of demand are to ‘buy and hold’ for the long-term. Both believe that the rising price confirms the wisdom of further investment in precious metals [silver included] and do not look for a ‘top’ in which to sell. However, both can still be fooled into believing that a Yuan or a Rupee price measures the value of gold.

The Indian government will allow the Rupee to weaken and prefer that Indian investors change their attitude to gold as it reduces money supply to the broad economy [they ignore the black financial system], whereas the Chinese government encourages its citizen’s to investment in gold.