Gold & Silver Digest: 1/27/13

Adam Taggart
By Adam Taggart on Sun, Jan 27, 2013 - 7:34pm

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.

1/27/13 7:15 PM EST US close metals price quotes from Finviz

South China Morning Post: Dealers see opportunity for Hong Kong in European gold shift

With Germany and other European countries planning to repatriate their gold reserves from the United States, dealers believe this might open up business opportunities for the gold depository at the Hong Kong airport.

Dealers in Hong Kong said the European action showed mainland China might also need to consider whether it was a good idea to shift back its gold stored in the US and other countries.

Seeking Alpha: It's Getting Hard To Be A Gold Bull These Days

Driven higher over the last month due largely to the prospect of increasing central bank money printing, gold and silver challenged important price levels early last week but failed to hold them, spurring technical selling that led to their sharpest weekly declines since mid-December.

A short-term resolution to U.S. budget deficit troubles and yet another gold import tax hike in India were negative developments for precious metals, while central bank actions and strong demand for physical silver were positives, however, traders were clearly more influenced by the former than the latter.

Market Oracle: Gold And Silver – All Fundamentals/Opinions Are Useless

All general statements are untrue, [including the one above and this one]. There are exceptions to every general rule, so they cannot always be true.

There is truth to the consideration that all fundamentals and opinions are useless in the markets, as they pertain to timing, and timing plays a huge role when investing/trading. What fundamentals/opinions do is put one’s belief system into a context with regard to the market[s]. If one wants to profit from any belief, he/she is then pitted against the forces of the marketplace in their exercise.

RGJ.com: Living in an age of gold rather than a Golden Age

The real size of the U.S. budget deficit

On Jan. 17, to little fanfare and even less media coverage, the Treasury reported (a month late) that the Generally Accepted Accounting Principles deficit was $6.9 trillion, or 46 percent of total U.S. economic activity for 2012. The 2011 GAAP deficit was $4.6 trillion.

GAAP accounting is required of all publicly traded companies in the U.S. The GAAP deficit includes the present value of all of the newly promised unfunded liabilities, mainly Medicare, Medicaid and Social Security. The General Accounting Office currently estimates the total sum of all past and present unfunded liabilities at $88 trillion, or nearly six times the size of the GDP.

Peak Prosperity: James Turk: Central Banks are Losing the War to Suppress Gold & Silver Prices

My guess is that 2013 and 2014 are going to be big up year for the precious metals, but we still have to contend with the central planners and the various government policies, which have been actively trying to keep the gold and silver prices from reaching fair value. The central planners are losing the war. They may win an occasional battle or two, but they’re losing the war, and eventually gold and silver are going to go higher.

So predicts James Turk, founder and Chairman of GoldMoney.com.

From James’ perspective, gold is not an investment. It’s a sterile asset, meaning it does not generate income. What it is, is money. Its function is to store wealth.

Forbes: Gold Likely To Test Lower End Of Range

(Kitco News) - Gold prices are likely to continue in their range-bound trade next week after the metal was unable to take out the $1,700 an ounce level, with market participants expecting gold will likely to test the low end of the recent price range.

Prices were weaker on the day and the week. February gold on the Comex division of the Nymex settled at $1,656.60, down 2% on the week. March silver settled at $31.206, down 1.9% on the week.

Bull Market Thinking: Peter Grandich: When Gold Breaks From This Base, It Will Trigger A Stampede Of Momentum Buyers

I had the chance this week to reconnect with Peter Grandich, publisher of The Grandich Letter,” for a powerful new interview. Peter has been issuing major market calls with tremendous accuracy for decades now, beginning with the 87′ market crash, and more recently calling the 2009 stock market bottom.

During the interview, Peter gave a sober outlook on the junior resource market, warned of a frightening class-warfare to arrive shortly in the US, and spoke on which key market will trigger a collapse making 2008 look like just a warm-up.

Silver Bear Cafe: Defend Yourself By Not Giving In

Take this challenge a day at a time. The fundamentals of gold's price and currency wars underwrite not only a recovery in the gold price, but a move to new highs from the base to be set soon. You have a weapon that has ultimate power to frustrate the price manipulation. All you need to do is to do nothing whatsoever which will confuse the shorts.

The manipulators that focus on moving price down and not selling volumes of gold to accomplish it wager on the fear mechanism of price decline to pressure you beyond your ability to reason logically. What the gold banks and short of gold share funds count on is that you will injure yourself just to stop the pain of loss.

Stay away from the well known chat sites that harbor paid-for bashers that say nearly insane things to scare the hell out of you. If the big boys cannot terrify you to the point of taking your position away from you, a firm bottom will come into play very soon.

Resource Investor: Fundamentals and future of the silver market

When it comes to precious metals, most investors are dazzled by gold. The issue with gold though, is that for many, it is too expensive to afford — one ounce of gold translates into more than $1,600 — and it cannot be used as money. Silver, with a price at the moment around $30, is more accessible to investors of all budgets and has direct liquidity.

Silver is also a precious metal with a wide range of industrial and commercial uses. As reported by Gold Fields Mineral Services, in 2012 the demand for silver came mainly from industry (43%). Investors made up 30% of the demand, 21% was absorbed by the jewelry industry and the remaining 6% was used by “photography and producer de-hedging, or closing out positions that had been used as a hedge,” according to the GFMS report.

Coin News: Canadian Mint Limits Sales of 2013 Silver Maple Leaf Bullion Coins

Investor interest in silver bullion coins remains at high levels with yet another world mint showing signs that it is unable to meet demand. The Royal Canadian Mint is now rationing supplies of its 2013 Silver Maple Leaf.

This move comes one week after the United States Mint suspended sales of their 2013 American Eagle silver bullion coins after inventories sold out, saying it would ration or limit orders when sales resume. Both series of bullion coins are struck for investors and guaranteed for weight and purity by the issuing government.

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.

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