Gold & Silver Digest: 1/23/13

Adam Taggart
By Adam Taggart on Wed, Jan 23, 2013 - 6:21pm

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.

1/23/13 6:00 PM EST US close metals price quotes from Finviz

Reuters: Gold down on EU data, better economic outlook

NEW YORK, Jan 23 (Reuters) - Gold dropped on Wednesday, retreating from the previous session's one-month high, as signs of an improving global economy capped investor interest in safe-haven investments.

The metal fell for the first time in the last three sessions, after the European Commission said consumer morale in the euro zone improved sharply in January. Reuters polls also showed that the world economy should perform slightly better this year on recovering Asian growth. 

"I don't think there is any reason for investors to own gold any more as the economy is turning around," said COMEX gold options floor trader Jonathan Jossen.

GoldSeek: Silver Bars Being Secured By HSBC – Buy $876 Million Worth From Poland

HSBC has quietly moved into acquiring large amounts of silver bullion.

The bank has secured another deal to buy silver bars from KGHM which brings their total purchases of silver from KGHM alone in the last 12 months to $876 million or PLN 3.65 billion.

KGHM is one of the largest producers of silver in the world and is the second-largest producer of refined silver in the world.

Fox Business: Gold Hedging Rose by 19,000 Ounces in Third Quarter - GFMS

The worldwide gold forwards and options market contained 4.88 million troy ounces, or 152 metric tons, at the end of September, up from 4.86 million ounces, or 151 tons, at the end of June, bringing an end to three consecutive quarters of a net reduction in gold producer hedging, according to a report released Wednesday by Thomson Reuters GFMS, a unit of Thomson Reuters (TRI) and Societe Generale SA (GLE.FR).

The hedge book rose 19,000 ounces after the gold price increased 11% in the three months to the end of the third quarter compared with the end of the second quarter.

Plata: Thoughts on gold and humanity

The supply of gold is largely misunderstood. According to MSM, gold supply is what is mined every year and brought to market – about 2,500 tonnes.

This is a big mistake. The supply of gold is calculated at about 170,000 tonnes, made up of virtually all the gold ever mined since mankind took notice of its existence as shiny yellow pebbles in sand “placers” in riverbeds. Every ounce –every gram - of this supply is owned by someone, either a person or an institution.

Bloomberg: Standard Bank Says Physical Gold Purchases Unusually High

Physical gold demand has been unusually strong for this time of year, with “good buying” from Southeast Asia, according to Standard Bank Plc.

The Standard Bank Gold Physical Flow Index signaled demand climbed to the highest since November, the bank wrote in an e- mailed report yesterday. Purchases typically pick up toward the end of the year amid religious festivals and the wedding season in India. Gold reached a four-week high of $1,696.28 an ounce in London on Jan. 17.

Money Morning: How Will the Debt Ceiling Debate Affect Gold Prices?

If you're wondering how the debt ceiling debate will affect gold prices, you need to check out a new report from Goldman Sachs Group Inc. (NYSE: GS).

Investment powerhouse Goldman believes gold prices will log impressive gains over the next three months as the debt ceiling debate takes center stage on Capitol Hill. The bank is advising investors to position portfolios ahead of upward moves in the precious metal.

"We see current prices as a good entry point to re-establish fresh longs," Goldman analysts Damien Courvalin and Alec Phillips wrote in a Jan. 18 report.

ETF Daily News: Thinking Silver? Talk To The Gold-Bugs

It is a reality of life that those investors who favor gold (and silver) as their preferred asset-class need to have ‘thick skins’. On aggregate, Western investors are holding roughly 1/10th the amount of gold and silver which they have held (in similar circumstances) in the nearly 5,000 since we first began refining “good money.”

Strip away the “gold bugs” however, the less-than-5% of the general population who hold virtually all of our gold (and silver); and the Average Investor (in Western societies) is only holding approximately 1% as much bullion as in any similar circumstances, in the thousands of years since we first began refining these metals.

This absurd level of under-ownership comes despite the twelve consecutive years of rising gold prices, a statistic unmatched by any other asset class. Obviously “it’s lonely at the top.”

ETF Daily News: Platinum Market Illustrates Silver Manipulation

Observant precious metals investors would have recently noticed a rare – almost unheard-of – occurrence: a bullion market where prices actually respond to supply/demand fundamentals. No, obviously I’m not referring to either the gold or silver market, but rather the platinum market.

Analysis was provided by a mining website. Unlike the pseudo-analytic drivel spewed by the mainstream media concerning commodity markets; this featured long-term, hard data and cogent reasoning – versus the short-term trivia, empty rhetoric, and fear-mongering we generally get from the Corporate Media.

Jesse's Café Américain: Gold Daily and Silver Weekly Charts - Silver Outperforming YTD - The System Is Fine, People Are the Problem

As you know, the old Wall St. saying is that 'so goes January, there goes the rest of the year' or words to that effect.

The last chart shows that assets are having a very nice start. Silver is leading they way with stocks not far behind. Gold is still recovering from its end of year smash, which lasted into the first week in January. I suspect that if things hold together it will do well.

VIX is very low and complacency about the economic picture is the word for the day.

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