Gold & Silver Digest: 2/22/13

Adam Taggart
By Adam Taggart on Fri, Feb 22, 2013 - 8:57pm

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.

2/22/13 8:54 PM EST US close metals price quotes from Finviz

Reuters: Gold rises, sluggish data suggests Fed stimulus may stay

SINGAPORE, Feb 22 (Reuters) - Gold firmed on Friday, extending gains from the previous session, as lacklustre U.S. data bolstered hopes the Federal Reserve's monetary stimulus would stay in place, though prices are heading for a second straight weekly drop.

Thursday's data on employment, manufacturing and consumer prices pointed to a still tepid recovery in the U.S. economy and supported the argument for the Fed to keep its stimulus.

Business Insider: The World's Biggest Gold Storage Company Is Now Turning Away American Clients

ViaMat, a Swiss logistics company that has been safeguarding precious metals since 1945, is literally the gold standard in secure storageicon1.png.

They have vaults from Switzerland to Hong Kong to Dubai, and they count among their clients some of the largest mining companies in the world. They know what they’re doing.

And now they’re dumping US citizens.

Forbes: ElDorado Gold Enters Oversold Territory

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In trading on Friday, shares of ElDorado Gold Corp (Toronto: ELD) entered into oversold territory, hitting an RSI reading of 29.7, after changing hands as low as $9.89 per share. By comparison, the current RSI reading of the S&P/TSX Composite Index is 51.3. A bullish investor could look at ELD’s 29.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

GoldSeek: Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Almost 2% and 4% on the Week

Gold saw a $10.31 gain at $1587.21 in Asia before it fell back to $1569.88 at about 9:30AM EST, but it then rallied back higher in the last few hours of trade and ended with a gain of 0.23%.  Silver slipped to as low as $28.345 before it also rallied back higher and ended with a gain of 0.28%.

Euro gold climbed back above €1198, platinum lost $4.50 to $1608.50, and copper dropped a couple of cents to about $3.54.

Gold and silver equities saw slight gains in the first half hour of trade, but they then fell back off midmorning and ended with modest losses on the day.

Jesse's Café Américain: Gold Daily and Silver Weekly Charts - Life During Wartime - Moody's Downgrades UK

Comex Option Expiration next week. I will be watching the action after expiration to try and get a better sense of where we are in this cycle of market monkey business.

The COT shows that as of Tuesday the hedge funds had deepened their short position in gold quite a bit in the combined futures/options categary, in preparation for a takedown. Next week's report should give us some idea of how things went into the expiration.

SilverSeek: The Future Price of Silver - A Review of Economic and Behavioral Principles

When forecasting the future price of silver from a fundamental perspective, it can make sense to review the basic principles of economics and behavioral science as they apply to the silver market.

These principles typically relate to factors that are driving higher future purchasing power of silver or factors that are making silver more valuable as a wealth saving asset. Other key contributing factors to silver’s currently undervalue pricing tend to block awareness with respect to the true value of silver.

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.

3 Comments

phecksel's picture
phecksel
Status: Silver Member (Offline)
Joined: May 24 2010
Posts: 168
What to buy

At today's prices, is gold or silver a better value.  If you just getting started and were going to invest something less than 5k, what makes sense?

sootsme's picture
sootsme
Status: Member (Offline)
Joined: Feb 2 2013
Posts: 23
Buy Gold or Buy Silver?

It really can be a trade off. Gold is less volatile, so you can make or lose more with silver. Silver is usually in smaller units of value, so more useful for trade; gold is easier to transport your hoard. Gold is a shiny gold color, silver is a (sometimes) shiny silver color... Ultimately, some of each works for me, but the proportion is for each of us to decide, I think...

Rob P's picture
Rob P
Status: Bronze Member (Offline)
Joined: Oct 8 2008
Posts: 85
additionally

If you're viewing it as an investment (implying something short of total collapse of the cpaitalist/industrial system), silver has about a 50% industial component.  It is used as part of making lots of things.  This may affect the price.  Silver is actually usefull - really amazing properties - and not just beautiful.

Many people think silver may have a lot more upside investent potential, citing, for example, such factors as a historical 15 to 1 ratio to gold that still has a long way to go.

If we were to actually get to the point at which we were using these things for money (hey I can still remember when we did), gold is not actually very practical for day to day transactions. Think: how do I pay for a loaf of bread with a 10K (valued) coin??  Get Junk silver in small coins like dimes if you are concerned with that.  

But in the end, there's nothing like the feel and look of gold.

Good luck.  Buy the dips if you can figure out where they're at these days. Or perhaps better yet, cost average in over 4 or 5 weeks in equal tranches. 

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