Gold & Silver Digest: 1/31/13
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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1/31/13 6:12 PM EST US close metals price quotes from Finviz
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 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.
- 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.
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.
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.
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