Gold & Silver Digest: 2/21/13
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.
2/21/13 6:23 PM EST US close metals price quotes from Finviz
NEW YORK, Feb 21 (Reuters) - Gold rose nearly 1 percent on Thursday as lackluster U.S. economic data boosted hopes that the Federal Reserve will maintain its monetary stimulus, allaying fears that the U.S. central bank may stop buying assets soon.
Thursday's economic reports from claims for jobless aid to factory activity and consumer prices pointed to a still tepid recovery, supporting the argument that the Fed should continue its buying of $85 million in bonds per month to stimulate growth.
Gold prices, already heading for the biggest monthly loss since May, may extend declines to a 13- month low, according to technical analysis by Matt McKinney at Zaner Group LLC.
The metal’s nine-day moving average has been below the 20- day average since Feb. 1, and both measures are declining on “sharp angles,” forming a so-called “super-trend down,” McKinney said. The bearish pattern signals that gold may drop to as low as $1,526 an ounce by the end of the month, he said. That would be the lowest since Dec. 29, 2011.
Before addressing the current equity-market situation, let's first wrap up the gold market dive call from last week. The dive happened, the extension occurred and profits should be taken. Could it go farther? Sure, it always can, but the ABCD projections are realized and the setup did exactly what it should have done.
In fact, it's time to buy it for a bounce, if anything, if you are an aggressive trader. It extended quickly and furiously off a high-probability trade where one could have their money exposed for a very short period of time. Good reward-to-risk; high probability and risk exposure minimized — that is the great trade as describe in my latest book, Trend Trade Set-Ups.
Today Marc Faber told King World News that a major bottom is forming in gold, but global stock markets are on shaky ground. Faber, who is author of the Gloom Boom and Doom Report, was speaking with KWN as the gold market was in the midst of being smashed on Wednesday. This is part I of a series of powerful written interviews that will be released today on KWN.
There's no question that gold prices have been in a jaw-dropping long-term bull market for basically a hundred years.
These are stressful days for those holding gold bullion and gold stocks. Sentiment in the gold sector has turned quite negative. Sentiment is at or close to the lows seen at the bottom of the market in 2008 and below the levels seen in seen in December 2011 and May 2012. To put things in some perspective since the depths of the 2008 financial crisis gold is up 132%, the TSX Gold Index is up 68%, the TSX Composite is up 70% and the S&P 500 is up 128%. However, if one goes back to 2000 and the top of the stock markets the S&P 500 is flat, the TSX Composite is down roughly 17%, gold is up 475% and the TSX Gold Index is up 150%. It all depends on where one is in time.
Today’s AM fix was USD 1,568.50, EUR 1,189.34 and GBP 1,030.96 per ounce.
Yesterday’s AM fix was USD 1,602.00, EUR 1,195.34 and GBP 1,045.76 per ounce.
Silver is trading at $28.73/oz, €21.87/oz and £18.91/oz. Platinum is trading at $1,608.50/oz, palladium at $716.00/oz and rhodium at $1,200/oz.
At every top in a market, any market, there are 100 reasons to buy. That’s why you should sell. When everyone knows how good the story is, there are no more buyers and the market can only go down.
At every bottom in a market, any market, there are 100 reasons to sell. That’s why you should buy. When everyone knows how terrible things are, there are no more sellers, only buyers and the market can only go up.
PHOENIX -- Arizonans who fear the federal government will make their folding money worthless may soon be able to substitute privately minted gold and silver coins.
The Senate Finance Committee on Wednesday took the first steps to making such coins legal tender in Arizona. SB1439 would give them the same legal status as bills and coins authorized by Congress.
Nothing in the proposal by Sen. Chester Crandell, R-Heber, would force anyone to actually accept these coins as payment for any debt. Their use would be voluntary.
The silver ETFs (SLV, SIVR, PSLV) and the silver mining equities have had a rough time the past two months, and many investors have just thrown in the towel. However, is now really the time to quit on silver?
One of the key factors that we need to analyze is related to the actual cost of mining silver -- that will help us answer the question if it is time to sell or accumulate SLV.
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