Gold & Silver Digest: 2/13/13

Adam Taggart
By Adam Taggart on Wed, Feb 13, 2013 - 7:57pm

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.

2/13/13 7:39 PM EST US close metals price quotes from Finviz

Reuters: Gold drops below $1,650, focus shifts to equities

NEW YORK, Feb 13 (Reuters) - Gold fell below $1,650 an ounce on Wednesday after data showed disappointingly small growth in U.S. retail sales in January, while some investors stayed at the sidelines ahead of a G20 meeting later this week, which is expected to set the tone for the gold trade.

China's week-long Lunar New Year holiday also curbed interest in the physical market, traders said.

Analysts said that some investors turned their attention to Wall Street and away from gold and other commodities after the benchmark U.S. equities index S&P 500 rose to its highest intraday level since Nov. 2007. 

Market Watch: Gold futures at lowest settlement since August

Platinum was a standout, with prices finishing higher for a second session in a row on production concerns.

Gold for April delivery GCJ3 -0.08% declined $4.50, or 0.3%, to settle at $1,645.10 an ounce on the Comex division of the New York Mercantile Exchange.

That was the lowest settlement price for a most-active contract since Aug. 22, according to FactSet. Futures prices have traded within a $50-an-ounce range since the start of the year.

YahooFinance: Store Physical Gold Abroad to Protect Against Meltdown: Faber

Marc Faber, editor of the Gloom, Boom and Doom Report says the 18-month correction in the price of gold isn't over yet, but we're close enough that those seeking to insure themselves against an economic meltdown should start building positions now.

“We haven’t completed the correction which began in September of 2011,” Faber tells Breakout in the attached video. The price per ounce of gold has fallen but there's still too much speculative money in precious metals for a sustainable rally. “Sentiment for gold is improving in the sense that more and more advisers and investors are turning bearish,” he says.

CNBC: The Big Bet That Gold Will Hit an All-Time High

If you are a gold bug, the last three months has not been fun. You have watched stocks rise to multi-year highs, while gold has fallen roughly 4.6 percent.

In February alone, gold is off 20 points, but now we are at least seeing some bullish bets being placed.

Wednesday morning, we saw an institutional trade in the Gold ETF in which a trader bought 9,517 GLD May 172-strike calls while selling the May 188-strike calls. The trader paid $.65 for this trade, and it will profit if GLD trades above $172.65 by May expiration. The trader also allowed plenty of room for the stock to run—the position is not called away until up at $188.

Fox Business: Gold and Silver Ignore Inflation Outlook

On Wednesday, gold (NYSEARCA:GLDexternal-link.png) futures for April delivery, the most active contract, fell $4.50 to settle at $1,645.10 per ounce, while silver (NYSEARCA:SLVexternal-link.png) futures for March dropped 15 cents to close at $30.87.

Both precious metals remain stuck in consolidation mode, despite an outlook from the United Kingdom saying inflation will remain above the 2 percent target rate for the next two years. Bank of England Governor Mervyn King also warned that tightening monetary policy was not the answer for economic woes.

GoldSeek: Gold – Safety Blanket or Quilting Essential?

INVESTMENT experts keep telling us two things.

One, you must diversify your savings. Nothing works for ever. Two, your annual returns are set to be miserable, because there's no return to the out-sized gains of the 1980s and '90s. The last 10 years prove that.

Now, we don't doubt Point 1. Not even people buying gold in 2001 could in fact see the future (though we might tell you different tomorrow). That second claim needs a closer look, however.

King World News: Richard Russell: History About To Repeat - Hang On To Gold

With key global markets at or near breakout levels, and the “Metal of Kings” marking time before reasserting its dominance, the Godfather of newsletter writers, Richard Russell, writes about Americans still partying, gold, the Fed, and stocks in a note to subscribers: “The central banks of the world are on a mission to keep the world economy going.  A great bull market started in 1980.  It ended in 2007, a period of 27 years.  As such, it was, in duration, the longest bull market in US history.  A bear market started in October 2007.

SilverSeek: The Case for Silver Outpacing Gold

Gold and silver might move in the same direction each day. But they aren't blood related...

A LOT OF TALK on the web right now says silver is significantly undervalued versus gold.
Many of these pundits and talking heads like to point to the historical relationship between gold and silver prices, sometimes known as the "ratio". People even comment as to this connection as far back as thousands of years ago. Let's take a quick look at this.

Bull Market Thinking: Exploration Geologist, “Here’s How We Acquired Over 250 Million Oz’s Of Silver—For The Cost Of Filing Fees”

In one of the more fascinating conversations I’ve had over the last year, I was able to connect with exploration geologist, Dr. Peter Megaw. Dr. Megaw is an expert on Mexican gold and silver exploration, and has authored a number of scientific pieces on ore deposits. He is also a director of silver exploration company, Mag Silver. 

Over the last 30 years, Dr. Megaw and his team have acquired some of Mexico’s most highly prized and elephant-sized silver deposits. These deposits are so large and of such high grade, they will “make money at $10 an oz. silver” and survive “under almost any market conditions”, explained Dr. Megaw.

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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