Gold & Silver Digest: 2/18/13

Adam Taggart
By Adam Taggart on Mon, Feb 18, 2013 - 5:51pm

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.

2/18/13 5:43 PM EST US close metals price quotes from Finviz

Los Angeles Times: Gold at N.Y. Fed is intact, some purer than thought, audit finds

NEW YORK -- The U.S. government’s gold in New York is safe in a vault underneath Manhattan, and some of the precious metal there is purer than previously thought.

That’s according to a first-ever audit conducted last year by the Treasury Department of U.S. gold on deposit at Federal Reserve banks in New York and elsewhere.

As part of the audit, the Treasury tested a sample of the government’s 34,021 gold bars in the New York Fed’s vault five stories below Manhattan’s financial district, according to the inspector general’s office. Auditors drilled tiny holes into the bars to remove samples that were tested for fineness in a process called assaying.

Bloomberg: Gold Climbs From 6-Month Low in London; Platinum Advances

Gold swung between gains and losses near a six-month low as investors weighed signs of improving economic growth against speculation that the biggest weekly drop since May will spur purchases. Platinum rose as rubber bullets were used in a clash at an Anglo American Platinum Ltd. mine.

Bullion dropped 3.4 percent last week and holdings in gold- backed exchange-traded products fell the most since July in the period on growing confidence that the global economy is strengthening. Billionaire investor George Soros cut his gold ETP holdings last quarter, government filings showed last week. UBS AG said in a report today that its gold flows to India, the top buyer, were above average after the sell-off, and Morgan Stanley said it expects “bargain hunting” this week.

Forbes: CFTC: Large Speculators Cut Gold Net Length As Traders Add Short Positions

(Kitco News) - Large speculators trimmed their net-long position in gold during the most recent reporting period for Commodity Futures Trading Commission data. Only unlike most other similar situations in recent years, this time the decline was fueled mainly by traders establishing short, or bearish, positions rather than mainly selling to exit or capture profits on bullish ones.

The large-spec net long also fell for silver, but increased slightly for the industrially oriented precious metals of platinum and palladium. A pair of CFTC reports for copper was mixed.

CNBC: Brace for Big Drop If Gold Breaches This Level

Gold bounced back on Monday from a drubbing that sent the precious metal to a six-month low late last week, however, analysts say further upside is dependent on whether gold can hold on to a key support level over the next few days.

"I think today (Monday), because we've had a relatively good bounce back, the market will focus on $1,600 and the ability for gold to trade through $1,630 will be quite critical," said Jonathan Baratt, founder of the commodities newsletter Barratt's Bulletin, referring to $1,600 as an important psychological level.

CBS Money Watch: Is the gold rally over?

(MoneyWatch) "Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning." So said former British prime minister Winston Churchill in a speech in London in 1942.

Gold closed the first day of trading in 2013 at $1,694. Two months earlier on Oct. 10, 2012, the metal had finished at $1,792, its highest close ever. On Friday, it closed at $1,616. And for the past few months, it has been defying all the "gold bugs," the famously avid investors who swear by gold. Is this just a temporary respite in the bull market that began in 2002, with gold having closed the prior year at $271? Or, as Churchill might have it, is it the beginning of the end, with a repeat of the experience of the 1980s on the way?

Bloomberg: Gold Death Cross Signals Price Slump as Soros Sells

Gold futures may extend a slump to as low as $1,538 an ounce, the cheapest since May, as moving averages signal a “death cross,” according to technical analysis by Fain Shaffer of Infinity Trading.

The metal may drop as much as 4.4 percent from the Feb. 15 settlement of $1.609.50 on the Comex in New York if the 50-day moving average falls below the 200-day measure, Shaffer said. Last week, the price tumbled 3.4 percent, the most since June, after government filings showed billionaire investor George Soros cut his stake in exchange-traded products backed by gold in the fourth quarter,

“The trend and the mood has turned negative,” Shaffer, the president of Medford, Oregon-based Infinity, said in a telephone interview. “Selling may gather momentum if prices fall below the cross.”

GoldSilverWorlds: Gold & Silver Price Takedown February 15th: Noise vs Facts

As from its inception, the aim of Gold Silver Worlds has been to focus on the real facts. Readers should understand what caused the price takedown on Friday February 15th 2013 and should be able to distinguish the noise from the true facts that the mainstream press attributed to the lower gold and silver prices. In this article, we show the real value of the biggest recent headlines and urge readers to value them for what they are: mainstream headlines. We also show the real reasons for the price drop. To get a flavour of the real facts, readers should look at this CNBC video which says it all.

GoldSilverWorlds: Ted Butler: Bullish on Gold But JP Morgan Excessively Short in Silver

The recent gold and silver price takedown and the related negativity in the mainstream press were a reason for thorough investigation. The article “Noise vs Facts” on Gold Silver Worlds was intended to focus on the real facts. Investors should not be mislead by interpretations. More in-depth analysis is required to truly understand what is going on primarily in the futures market. With his extensive background and knowledge we trust on Ted Butler’s COT analysis (which is at the core of the short term price setting). He wrote the following paragraphs to his paid subscribers on Saturday February 16th. His insights reveal a different picture than the one on the surface – for sure the one that was created by the mainstream media – so we are more than happy to share it with our readers.

Investors.com: Gold, Silver: What To Expect After Chinese New Year

The Year of the Snake sank its fangs into gold and silver investors, with the precious metals melting to one-month lows as Asian markets closed for Lunar New Year holiday.

Traders also sold positions ahead of the G-20 summit later this week when world leaders will discuss currency devaluation.

Spot gold prices fell 1.13% to $1,649.40 an ounce. SPDR Gold Shares (GLD), tracking a 10th of an ounce of bullion, gapped down 1% to 159.748 in heavy volume in the stock market.

The Motley Fool: Is Silver Being Manipulated?

After a recent article I wrote about the potential of a silver bubble, I got a question about the behavior of JPMorgan Chase (NYSE: JPM  ) with regard to the silver market, specifically the allegation that the bank was actively involved in manipulating the silver market through a sizable short position. The basis of the question seemed to be a request to bring forth the issue and address how silver was trading as a result of JPMorgan's activity and within the context of the global economy in general.

As of last December, the last major complaint against the bank was dismissed in a federal court, as well as by the Commodity Futures Trading Commission. That doesn't mean that no wrongdoing occurred, but it does suggest that insufficient evidence exists to take the matter forward.

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.

4 Comments

Grover's picture
Grover
Status: Platinum Member (Offline)
Joined: Feb 16 2011
Posts: 507
Warm and Fuzzy

http://www.latimes.com/business/money/la-fi-mo-gold-new-york-fed-audit-pure-20130218,0,2393718.story

The New York Fed holds 99.98% of the U.S.-owned gold bars and coins in the custody of the Federal Reserve. The rest of the gold is on display at Fed banks in cities such as Richmond, Kansas City and San Francisco.

As of Sept. 30, when the market price of gold was $1,776 an ounce, the Fed banks held $23.9 billion in U.S. gold. (Gold has since declined in value, and on Monday the precious metal was hovering around $1,610 an ounce.)

It always scares me when reports of audits don't quite add up. At $1,776 per ounce, the Feb banks held $23.9 billion. That equates to 1,3457,207 ounces or approximately 418.5 tonnes. According to Wikipedia,(table below,) the US claims to have about 19.4 times as much as reported in this "audit." They only audited the gold in the custody of the Federal Reserve. I hope this audit is only a start.

Does that make anyone else warm and fuzzy?

Grover

 http://en.wikipedia.org/wiki/Gold_reserves 
World official gold holding (December 2010)[10]
Rank Country/Organization Gold
(tonnes)
Gold's share
of national
forex reserves (%)[10]
  Sum 34,913.7  
1 United States United States of America 8,133.5 76.6%
2 Germany Federal Republic of Germany 3,396.3 [11] 73.7%
3 International Monetary Fund 2,814.0 N.A.
4 Italy Italian Republic 2,451.8 73.4%
5 France French Republic 2,435.4 71.8%
6 China People's Republic of China 1,054.1 1.8%
7 Switzerland Swiss Confederation 1,040.1 15.3%
8 Russia Russian Federation 958.0[12] 9.2%
9 Japan Japan 765.2 3.5%
10 Netherlands Kingdom of the Netherlands 612.5 61.9%
11 India Reserve Bank of India 557.7 9.6%
12 Logo European Central Bank.svg European Central Bank 502.1 35.0%
13 Iran Islamic Republic of Iran 500 [13] 19.8%
14 Taiwan Republic of China (Taiwan) 422.4 5.9%
15 Portugal Portuguese Republic 382.5 89.2%
16 Venezuela Bolivarian Republic of Venezuela 372.9 67.7%
17 Saudi Arabia Kingdom of Saudi Arabia 322.9 3.3%
18 United Kingdom United Kingdom of Great Britain and Northern Ireland 310.3 [14] 17.6%
19 Turkey Republic of Turkey 302.4[15] 15%
20 Lebanon Republic of Lebanon 286.8 32.2%
21 Spain Kingdom of Spain 281.6 39.2%
22 Austria Republic of Austria 280.0 57.0%
23 Belgium Kingdom of Belgium 227.5 41.2%
24 Algeria People's Democratic Republic of Algeria 173.6 79.5%
25 Thailand Kingdom of Thailand 152.4 4.6%
26 Libya Libya 143.8 5.6%
27 Philippines Republic of the Philippines 142.7 10.4%
28 Singapore Republic of Singapore 127.4 3.0%
29 Sweden Kingdom of Sweden 125.7 13.6%
30 South Africa Republic of South Africa 125.0 13.8%
31 Bank for International Settlements 119.0 N.A.
32 Greece Bank of Greece 111.7 81.3%
33 Mexico United Mexican States 106.3 4.0%
34 Romania Romania 103.7 11.3%
35 Poland Republic of Poland 102.9 5.3%
36 Australia Commonwealth of Australia 79.9 9.5%
37 Kuwait State of Kuwait 79.0 13.8%
38 Egypt Arab Republic of Egypt 75.6 14.8%
39 Indonesia Republic of Indonesia 73.1 3.5%
40 Kazakhstan Republic of Kazakhstan 73.6 12.5%
41 Denmark Kingdom of Denmark 66.5 4.1%
42 Pakistan Islamic Republic of Pakistan 64.4 18.9%
43 Argentina Argentine Republic 54.7 6.4%
44 Brazil Federative Republic of Brazil 52.5 0.5%
45 Bolivia Plurinational State of Bolivia 49.3 22.9%
46 Finland Republic of Finland 49.1 24.6%
47 Bulgaria Republic of Bulgaria 39.9 12.0%
48 South Korea Republic of Korea 39.4 0.7%
49 Belarus Republic of Belarus 38.5 41.4%
50 West African Economic and Monetary Union 36.5 12.9%
51 Malaysia Malaysia 36.4 1.5%
52 Ukraine Ukraine 35.2 4.9%
53 Peru Republic of Peru 34.7 4.0%
54 Slovakia Slovakia 31.8 67.6%
55 Ecuador Ecuador 26.3 32.0%
56 Syria Syrian Arab Republic 25.8 7.9%
57 Morocco Kingdom of Morocco 22.0 5.6%
58 Nigeria Federal Republic of Nigeria 21.4 3.2%
59 Serbia Republic of Serbia 14.1 5.1%
60 Cyprus Republic of Cyprus 13.9 58.3%
61 Bangladesh People's Republic of Bangladesh 13.5 7.5%
62 Netherlands Antilles Netherlands Antilles 13.1 36.3%
63 Jordan Hashemite Kingdom of Jordan 12.8 5.5%
64 Czech Republic Czech Republic 12.5 1.6%
65 Qatar State of Qatar 12.4 4.4%
66 Cambodia Kingdom of Cambodia 12.4 16.6%
67 Colombia Republic of Colombia 10.4 1.8%
68 Laos Lao People's Democratic Republic 8.8 36.5%
69 Sri Lanka Democratic Socialist Republic of Sri Lanka 8.1 5.3%
70 Latvia Republic of Latvia 7.7 05.5%
71 El Salvador Republic of El Salvador 7.3 14.6%
72 Guatemala Republic of Guatemala 6.9 5.8%
73 Republic of Macedonia Republic of Macedonia 6.8 14.8%
74 Tunisia Tunisian Republic 6.7 4.5%
75 Republic of Ireland Ireland 6.0 15.1%
76 Nepal Federal Democratic Republic of Nepal 6.0 [16]  
77 Lithuania Republic of Lithuania 5.8 04.1%
78 Bahrain Kingdom of Bahrain 4.7  
79 Tajikistan Republic of Tajikistan 4.4  
80 Mauritius Republic of Mauritius 3.9 06.5%
81 Canada Canada 3.4 0.3%
82 Slovenia Republic of Slovenia 3.2 15.8%
83 Aruba Aruba 3.1 24.2%
84 Hungary Hungary 3.1 0.3%
85 Kyrgyzstan Kyrgyz Republic 2.6 7.5%
86 Mongolia Mongolia 2.3 4.8%
87 Luxembourg Grand Duchy of Luxembourg 2.2 10.6%
88 Suriname Republic of Suriname 2.2 13.1%
89 Hong Kong Hong Kong Special Administrative Region 2.1 0.0%
90 Iceland Republic of Iceland 2.0 01.3%
91 Papua New Guinea Independent State of Papua New Guinea 2.0 2.8%
92 Trinidad and Tobago Republic of Trinidad and Tobago 1.9 1.1%
93 Albania Republic of Albania 1.6 3.4%
94 Yemen Republic of Yemen 1.6 1.8%
95 Cameroon Republic of Cameroon 0.9 1.2%
96 Honduras Republic of Honduras 0.7 1.4%
97 Paraguay Republic of Paraguay 0.7 0.7%
98 Dominican Republic Dominican Republic 0.6 1.1%
99 Gabon Gabonese Republic 0.4 0.8%
100 Malawi Republic of Malawi 0.4 8.9%
101 Central African Republic Central African Republic 0.3 8.4%
102 Chad Republic of Chad 0.3 2.4%
103 Republic of the Congo Republic of the Congo 0.3 0.4%
104 Uruguay Oriental Republic of Uruguay 0.3 0.1%
105 Fiji Republic of Fiji 0.2 0.0%
106 Estonia Republic of Estonia 0.2 6.0%
107 Chile Republic of Chile 0.2 0.0%
108 Malta Republic of Malta 0.2 1.6%
109 Costa Rica Republic of Costa Rica 0.1 0.1%
110 Haiti Republic of Haiti 0.0 0.1%
westcoastjan's picture
westcoastjan
Status: Gold Member (Offline)
Joined: Jun 4 2012
Posts: 467
boo hoo :)

My beloved country is languishing with the have nots... sad

76 Nepal Federal Democratic Republic of Nepal 6.0 [16]  
77 Lithuania Republic of Lithuania 5.8 04.1%
78 Bahrain Kingdom of Bahrain 4.7  
79 Tajikistan Republic of Tajikistan 4.4  
80 Mauritius Republic of Mauritius 3.9 06.5%
81 Canada Canada 3.4 0.3%
82 Slovenia Republic of Slovenia 3.2 15.8%
83 Aruba Aruba 3.1 24.2%
84 Hungary Hungary 3.1 0.3%
85 Kyrgyzstan Kyrgyz Republic 2.6 7.5%
86 Mongolia Mongolia 2

I am not sure which is worse: only having 3.4 tons, which is kind of believable, or having 8133.5 tons which is subject to believability. At least Germany is not asking us to return any... wink

Jan

Ken C's picture
Ken C
Status: Platinum Member (Offline)
Joined: Feb 13 2009
Posts: 753
Problems with this report.

First of all the New York Fed stores gold for many other countries and not just the US. The Article says that 99,98% of the gold at the Fed belongs to U. S. That is just not so. I find it interesting the the FED does an audit but refused to even let the Germans view their gold.

Then again, if you wanted an "audit" would you ask the person holding it to do the audit or would you get someone from the outside. The Federal Gov. auditing the Fed Res. how rediculous. The Fed Gov won't even let anyone into Fort Knox much less do an audit. That is where most of the U. S. gold is "supposed" to be.

I think this story is misinformation and disinformation. Why should anyone believe any of it?

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2816
McAlvany audio on gold

Navigating Well in Times of Distraction (Listen to all of it)

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