Gold & Silver Digest: 1/17/13
The Gold & Silver Digest contains headlines of stories that members of this group deem relevant and/or interesting to precious metals enthusiasts.
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1/17/13 5:45 PM EST US close metals price quotes from Finviz
(Kitco News) - Comex gold futures prices ended the U.S. day session with moderate gains and hit a fresh four-week high Thursday, after falling solid under selling pressure in mid-morning trading. Traders quickly stepped in to buy the morning dip in gold prices and do some bargain hunting. The key “outside markets” were also in a bullish posture for the precious metals Thursday—a weaker U.S. dollar index and higher crude oil prices. Both the gold and silver bulls gained fresh upside near-term technical momentum on Thursday. February gold last traded up $7.60 an ounce at $1,690.80. Spot gold was last quoted up $11.10 at $1,691.50. March Comex silver last traded up $0.238 at $31.77 an ounce.
Gold prices quickly rebounded from their daily lows that were hit in mid-morning dealings Thursday. The metals were pressured following the release of some U.S. economic data that was stronger than expected. Weekly U.S. jobless claims came in at a five-year low, while U.S. housing starts jumped sharply in December. That news helped to lift the U.S. dollar index up from its daily low, which in turn led to selling pressure in the metals.
A WHOPPING 5.5kg gold nugget worth up to $300,000 has been found in bush near Ballarat.
The "incredibly rare" nugget was found 60cm underground by a prospector, who wishes to remain anonymous, on Wednesday.
Ballarat Mining Exchange Gold Shop owner and dealer Cordell Kent said the prospector heard a faint noise on his detector and removed a dense pile of leaf mulch before he started digging.
The world is moving step by step towards a de facto Gold Standard, without any meetings of G20 leaders to announce the idea or bless the project.
Some readers will already have seen the GFMS Gold Survey for 2012 which reported that central banks around the world bought more bullion last year in terms of tonnage than at any time in almost half a century.
(Reuters) - India's gold imports could drop by up to a quarter this year if, as expected, the government again raises the duty on the precious metal, the chairman of the All India Gems and Jewellery Trade Federation said on Thursday.
Bachhraj Bamalwa said he believes import duty on gold will be hiked to 6 percent in the budget scheduled for February 28. The rate was doubled to 4 percent last as part of moves to cut India's trade deficit.
The bank's central thesis is that the U.S. economic recovery finally takes off in 2013, and Goldman expects that to drive a selloff in the gold market as investors rotate away from traditional "safe-haven" investments.
The industry has exploited its best-quality gold reserves and is being forced to tap lower-grade and higher-cost deposits, Iamgold Chief Executive Officer Steve Letwin said.
Gold stocks, especially juniors, have been undervalued for longer than most investors thought possible. The result is what David Skarica, founder of Addicted to Profits, calls a Maximum Pessimism Trade. In this interview with The Gold Report, Skarica summarizes his analytical tools and provides clear examples of companies that meet his criteria as "screaming buys." Gold junior investors might feel as if they live in the movie "Groundhog Day," but the undervaluation cycle will eventually be broken. Is the junior golds' spring around the corner?
This week Chris sits down with precious metals expert Ted Butler to discuss the recent developments in the gold and silver markets.
While Ted discounts the price impact of the Bundesbank reserve repatriation news, he is more focused on the recent supply tightening the silver market. Silver inventories are currently experiencing record high weekly turnover (no other commodities are seeing this same dynamic), and Ted thinks this may be the sign of 'hand-to-mouth' tightness in the supply of investment-grade and industrial silver. If true, it's a whopper of a bullish sign for silver investors – and a flashing sign to those on the sidelines that now may be a good time to get into the action.
January 16, 2013 – The precious metals have been in a 2-year trading range. Though gold rose 10.2% in 2011 and 7.0% in 2012, these rates are below the 16.8% average annual appreciation gold has achieved over the past twelve years.
Importantly, by being in a trading range, it is clear that the precious metals have refused to break lower despite repeated attempts by the gold cartel that occasionally gave the precious metals a severe pummeling. So given the precious metals dogged determination to absorb whatever was thrown at them throughout this period – which is a sign of underlying strength – we can reasonably expect gold and silver to start moving higher soon.
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