Gold & Silver Digest: 1/7/13

Adam Taggart
By Adam Taggart on Mon, Jan 7, 2013 - 8:08pm

I'm experimenting with creating a version of the Daily Digest for this Gold & Silver group. It will contain headlines of stories that I and other members of this group deem relevant and/or interesting to precious metals enthusiasts.

If you'd like to see such a digest happen on a regular basis, let me know in the Comments section below. I can't promise daily frequency (yet), but at least every few days.

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

 

1/7/13 US close metals price quotes from Finviz

Reuters: Gold falls, Fed asset purchases in focus

Gold dropped on Monday as uncertainty about the duration of the Federal Reserve's economic stimulus program decreased bullion's appeal as a hedge against inflation.

The metal remained under pressure after two top Fed officials on Friday suggested the U.S. central bank may halt its bullion-friendly asset purchases by the end of 2013 due to a better economic outlook.

Clive Maund: Gold Market Update

So the sharp shakeout late last week, in a panicky response supposedly due to the Fed freaking out investors, looks to have thrown up another opportunity to accumulate more PM sector holdings ahead of the next uptrend and as we will now see, there is strong evidence that Friday’s intraday plunge marked the end of the correction in force from early October.

As we can see on our 6-month chart for gold below, Friday’s steep intraday drop brought the price down exactly to the bottom of our earlier delineated channel and just look what happened there – it bounced strongly on robust volume to close little changed on the day, leaving a fine large “bull hammer” on its chart, and it is no coincidence that silver did likewise. This large bull hammer is a sign that the downtrend has now run its course, and that a reversal is occurring. Notice how the C-wave decline of the 3-wave A-B-C correction matches the A-wave in magnitude, approx. $120. This looks like the final low and gold should now ascend from here.

Eric Sprott: Demand For Gold Is Now Overwhelming Central Banks

The Western central banks have for sure been supplying the gold, and they are probably in a jam. In fact, I almost look at those minutes that came out as recognition of the real problem they are facing, that the demand for physical gold is just overwhelming them. And they have to keep this volatility in the market so that there isn’t a groundswell of interest in terms of buying it. But I have no doubt the physical story will win the day, ultimately, and it’s not very far away.

But we have these forces at work in the paper market that want to make us think there’s no upside here. I can assure you there will be plenty of upside. We’ve gone up 12 years in a row, and with a weak year last year, I suspect we’ll have a way better year this year. And some day it will break (massively to the upside). You see all of the concerns, whether it’s the people in Australia, Austria, Germany, ‘Where the hell is our gold?’ We’ll find out that the gold is not there. I don’t think they (central planners) know where their (other countries) gold is. It’s probably been sold would be my guess. Our analysis says that gold was leased and sold into the market. And someday, when some country goes to repatriate it, they are going to find out it’s not there.

Jeff Clark/Casey Research: Dear 2013, What Will Gold Do This Year?

If there's one thing we're certain of, it's that the current path of debt accumulation, deficit spending, and money printing will continue to devalue dollars and other unbacked currencies – and probably at an accelerating speed in the not-too-distant future. That makes gold a must-own asset despite its 500+% advance since 2001. I've read some analysts claim that these things are already factored into the gold price. That's debatable, but even if they're right, what's not priced in are the delayed and indirect consequences from all those actions...

Tom Cloud: The Pieces Are In Place For A Gold Rally

The public is realizing that there’s not going to be a recession. People were uncertain about the health care bill’s impact and the slowdown in the US, but lately every announcement is about asset purchases and debt monetization. The Fed is up to $85 billion a month, and Japan’s new leader seems to want the same thing. So the government isn’t shutting down and the can is being kicked down the road. All the pieces are in place for an up-leg in precious metals.

Jeffrey Lewis : Silver Prices in the Event of a Comex Default

If and when the Comex silver market implodes, so should the paper market for silver. Nevertheless, can this happen and will it happen?

Also, if a Comex default does occur, what are the likely scenarios and aftermath that will impact silver traders and the price of silver? The following sections explore the increasingly likely possibility of a Comex default in further detail.

GoldCore : Gold In Manipulative Sell Off? Nice New Years Gift

Technical analysis should be ignored in favour of fundamental analysis given that there are strong grounds for suspecting that the gold and silver markets are subject to manipulation by certain banks in the same way that interest rates were in the LIBOR manipulation.

The move down is overdone and the smart money will again see the over reactive sell off, manipulative or not, as a nice gift to start the New Year and will again accumulate on the dip.

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.

16 Comments

Parzinski's picture
Parzinski
Status: Member (Offline)
Joined: Mar 8 2010
Posts: 6
Great idea!

Adam- love the idea. Thanks for all you do.

Petey1's picture
Petey1
Status: Bronze Member (Offline)
Joined: Sep 13 2012
Posts: 58
I like it

This is a good idea. More please!

Travlin's picture
Travlin
Status: Diamond Member (Offline)
Joined: Apr 15 2010
Posts: 1322
Yes

Yes Adam.  I think this is a good idea.  Just try to find the real news items and minimize the hot air from the gold boosters.

Travlin 

Adam Taggart's picture
Adam Taggart
Status: Peak Prosperity Co-founder (Offline)
Joined: May 26 2009
Posts: 2939
Crowdsourcing

Travlin -

I will do my best.

I'm hoping for the magic of crowdsourcing to factor in here. The more the members of this group send me the best of what they find during the day, the easier it will be for me to aggregate the 'cream of the crop'.

But I'm sure it's going to take a little while to build enough momentum to reach that state. So please be tolerant with my efforts in the interim :)

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 3125
ditto Travlin

Adam,

I think its a good idea.  But, what we don't need is another echo chamber of PM pumpers like KWN.  I trust your judgment in picking stories the represent a balanced view.

Doug

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1517
Yes

I think it's a good idea, and I'll forward you interesting stuff I stumble across.

Pioneer's picture
Pioneer
Status: Bronze Member (Offline)
Joined: Mar 1 2009
Posts: 64
precious metals articles digest - yes

I would welcome a precious metals digest on Peak Prosperity website.  thanks

LesPhelps's picture
LesPhelps
Status: Platinum Member (Offline)
Joined: Apr 30 2009
Posts: 728
Precious Metals Digest

Your idea would be a big help.

As far as crowd sourcing goes, obviously it would spread the effort fairly.

Based on detailed posts I've read here and elsewhere on the web, it is clear that I don't spend nearly as much time surfing the web as some do.  One thing that could make this idea more organized is spliting up the key sources of information on precious metals among willing contributors.  I don't have the time to scan the entire web for articles every day, but I could easily peruse a couple of key sources every day looking for valuable news to pass on.

Just a thought.

Les 

RLC's picture
RLC
Status: Member (Offline)
Joined: Apr 23 2009
Posts: 2
Precious Metals Digest

Adam;

Great idea - go for it.  Look forward to a specialized PM digest.

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2379
Good suggestion Adam

I would read it for sure, and could probably add some info. from more obscure sources from time-to-time. 

Atreat's picture
Atreat
Status: Bronze Member (Offline)
Joined: Dec 4 2011
Posts: 33
Gold/Silver DailyDigest

Absolutely

Jbarney's picture
Jbarney
Status: Silver Member (Offline)
Joined: Nov 25 2010
Posts: 233
Good Idea

Any source which provides more up to date information on Gold and SIlver is worthwhile.

tomccoy1's picture
tomccoy1
Status: Member (Offline)
Joined: Nov 8 2010
Posts: 21
Keep the Gold Articles comming

Really appreciate the articles on Gold and PM's.  You have a good selection including Kingworld News (Eric Sprott) and Gold Core.  You may want to add something from James Turk (Gold Money) and perhaps even Bullion Bulls (which is a bit extreme).  I would take the approach of including a relatively few articles each week, and focus on the higher quality info, as Peak Prosperity is a more general concept, and avid Gold Bugs can easily access the strictly PM sites for more specialized articles. 

Thanks!

Adam Taggart's picture
Adam Taggart
Status: Peak Prosperity Co-founder (Offline)
Joined: May 26 2009
Posts: 2939
Gold & Silver Digest: 1/8/13 now available

Edition #2 is now available: http://www.peakprosperity.com/discussion/80449/gold-silver-digest-1813

 

Hrunner's picture
Hrunner
Status: Gold Member (Offline)
Joined: Dec 28 2010
Posts: 256
Absolutely!

Adam, Great idea!

I like the short summary format.

I think it is important to post Gold -Silver bearish articles too, FYI.

Thanks for the great stuff,

H

hucklejohn's picture
hucklejohn
Status: Gold Member (Offline)
Joined: Dec 13 2008
Posts: 281
Good idea!

I would value a daily digest of good articles on precious metals.   

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