Gold & Silver Digest: 1/31/13

Adam Taggart
By Adam Taggart on Thu, Jan 31, 2013 - 7:16pm

The Gold & Silver Digest contains headlines of stories that members of this group deem relevant and/or interesting to precious metals enthusiasts.

If you have articles to submit for the next digest, please email them to me by clicking here.

1/31/13 6:12 PM EST US close metals price quotes from Finviz

Reuters: Gold down almost 1 percent after failing to rally

Gold fell nearly 1 percent on Thursday on technical selling after the previous session's rally, with investors focused on the all-important
U.S. nonfarm payrolls report for a clue to  the Federal Reserve's monetary outlook.

The metal hit a two-week high at above $1,680 an ounce on Wednesday after data showed the U.S. economy unexpectedly shrank in the fourth quarter, with gold holding those gains after the Federal Reserve pledged to maintain a monthly $85 billion bond-buying program.

The Wall Street Journal: A Wager on Metal's Silver Lining

The silver market has become a magnet for investors betting on growth in the global electronics and solar-power industries.

Economists and analysts forecast these sectors, which use large volumes of silver, will expand at a faster clip than the global economy, boosting demand for the metal.

Many investors are wagering that rising consumption will translate into higher prices, even as demand for silver as a haven investment ebbs. Money managers tend to scoop up silver, along with gold, in times of market turbulence or when inflation concerns come to the fore.

Deviant Investor: Why Buy Gold?

  • Gold has been real money (medium of exchange and a store of value) for over 3,000 years. It is still real money.
  • Gold has no counter-party risk. It is not someone else’s liability. It has intrinsic value that is recognized around the world.
  • ALL paper money systems have eventually failed. The intrinsic value of paper money is effectively zero; and all paper money has, throughout history, eventually devalued to zero.

Business Insider: Marc Faber: I Love This Market Because The Higher It Goes, The Bigger The Crash

The price of gold held onto most of yesterday's $15 jump at $1676 per ounce Thursday morning in London, ticking back as Asian and European stock markets fell after Wednesday's surprise drop in US economic output figures.

Silver also eased back, but held at 1-week highs above $32 per ounce after rising yesterday in gold's "slipstream" as one bullion-bank analyst put it.

Forbes: The 10 Minute Gold Standard: It's Much Easier Than You Think

Sometimes people ask me: “How do we transition to a gold standard system?” People think it’s really difficult.

Actually, it can be very easy. The easiest, simplest, fully-operational form of a gold standard system could be implemented in ten minutes. It doesn’t cost anything, and doesn’t require any gold bullion.

Economic Times: BNP Paribas cuts 2013 gold, silver price forecasts

BNP ParibasBSE -1.47 % on Thursday lowered its 2013 price forecast for gold to $1,790 per ounce from $1,865, while retaining their positive outlook on the yellow metal.

"While investor fatigue may start to appear in gold, we continue to expect the metal to rebound from its current level and go on to retest $1,800 per ounce," the bank said in its latest note.

The bank said one possible reason for gold's underperformance may be the rebound in risk appetite that was seen since the end of 2012.

Reuters: Demand for silver jewellery exports picks up sharply

Steep growth in India's silver exports is outpacing its other trade in precious metals as world demand picks up, albeit for cheaper jewellery options.

Shipments are likely ro rise by up to 30 percent this year, trade body officials said on Tuesday

"At such high prices, gold is going out of budget for many youngsters ... a wrist bracelet of white gold is now replaced with sterling silver as it is cheaper," said Pankaj Kumar Parekh, vice-chairman of the Gems and Jewellery Export Promotion Council (GJEPC).

CoinWeek: How Liquid Is Your Collection?

Off the top of your head, can you say how much your collection is worth?

Do you have a game plan for selling in an emergency?

How liquid is your collection?

Your answers to any of these questions say a lot about you as a collector. How you buy. What you buy. Maybe even why you buy.  But more specifically, they let you know how prepared you are in the event that you have to sell part or all of your collection. And eventually, even though it’s nothing the average person enjoys thinking about, it’s vital information to anyone who might one day inherit your coins and be thrust into the position of deciding what to do with them.

Global Research: Gold Buying Spree: All that Pivots is Gold

To quote the immortal line in Dashiell Hammett’s The Maltese Falcon, as filmed by John Huston, “Let’s talk about the black bird” – let’s talk about a mysterious bird made out of gold. Oh yes, because this is a film noir worthy of Dashiell Hammett – involving the Pentagon, Beijing, shadow wars, pivoting and a lot of gold.

Let’s start with Beijing’s official position; “We don’t have enough gold”. That leads to China’s current, frenetic buying spree – which particularly in Hong Kong anyone can follow live, in real time. China is already the top gold producing and the top gold importing nation in the world.

Note: If you're reading this and are not yet a member of Peak Prosperity's Gold & Silver Group, please consider joining it now. It's where our active community of precious metals enthusiasts have focused discussions on the developments most likely to impact gold & silver. Simply go here and click the "Join Today" button.

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