Gold & Silver Digest: 3/4/13

Adam Taggart
By Adam Taggart on Mon, Mar 4, 2013 - 7:24pm

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.

3/4/13 7:03 PM EST US close metals price quotes from Finviz

Reuters: Gold eases as ETF holdings fall again, U.S. cuts eyed

NEW YORK, March 4 (Reuters) - Gold prices eased on Monday as demand waned for gold-backed exchange-traded funds and investors continued to digest the effect of wide-ranging U.S. government spending cuts on bullion.

A lack of major U.S. economic indicators and a flat U.S. equities market failed to provide gold with a new catalyst, leading to quiet trading.

Some investors remained on the sidelines, with President Barack Obama and congressional Republicans still apart on a deal to avert automatic U.S. budget cuts. The White House ordered cuts in government spending on Friday night.

Forbes: FOCUS: Some Fund Managers Like New 'All-In' Gold Miner Cost Metrics; Others Say More Is Needed

Some fund managers say they welcome a new concept unrolled by major gold producers during their most recent round of earnings reports in which companies are releasing a new cost metric named “all-in sustaining cash costs.”

Still, while many applaud the new metric, some also say it doesn’t go far enough to really give shareholders a truer sense of margins.

Barrick Gold Corp, the world’s largest producer, and Goldcorp were among several companies that rolled out all-in sustaining cash costs in their fourth-quarter earnings reports. Barrick said it has been working with other members of the World Gold Council to define an all-in sustaining cash cost measure that better represents the total cost of producing gold. A final standard is expected to be finalized by WGC members in the middle of 2013, and Barrick said it will conform its reporting to the measure that is ultimately approved.

CNBC: Can Gold Stocks Regain Their Luster?

Gold stocks fell to a three-and-a-half year low on Monday, as investors continue to reduce their exposure to bullion and other commodities on weakening economic data from China.

With stocks rising, the dollar strengthening, and U.S. Treasury bond yields holding below 2 percent, investment demand for gold continues to decline. According to BlackRock, gold exchange-traded product outflows have now reached $5.6 billion year-to-date.

Business Insider: The Gold Bull Market Isn't Over, And The Reasons To Own It Are 'Evolving'

A notable feature of the investment landscape over the past few months has been the 12 percent drop in the price of gold since September.

During that time, we've heard some incredibly bearish calls on gold from strategists at Goldman Sachs and Credit Suisse, among other shops. Rising real interest rates are said to be the death knell for gold.

Morgan Stanley, which for a while has touted gold as its number-one investment idea in the commodity space, isn't ready to throw in the towel just yet.

GoldSeek: Eric Sprott: Central Bankers Are Gaming Gold

Some people may look at the stock market and see economic recovery. Eric Sprott of Sprott Asset Management and Sprott Money looks at myriad other economic indicators and sees an economy still in decline. Despite his suspicions that central banks are keeping gold prices artificially low, he tells The Gold Report that he favors gold, platinum, palladium and especially silver, over the near and long term.

The Gold Report: The price of gold has dipped under $1,600/ounce ($1,600/oz); silver is below $30/oz. Is this a case of living by the sword and dying by the sword, where precious metals prices only go up in a bad economy and are doomed to languish when things go well?

Jim Sinclair's Mineset: Comet Gold Resistance Movement

The new normal in Gold, the "Comet Gold Resistance Movement," is your ticket to a sound monetary system. This will be followed by a period of long-term industrial growth as the world has never seen based on ultimate money, forced by the actions of the market place, not a product of any numbered group, be it G20, or G anything.

Since there is no doubt at all that the price of gold is going to and through $3500 with unimaginable volatility, I once again would like to suggest as in all wars that when a battle has been lost, the rise of the Gold and Silver Resistance Force, a militia of sorts in the market.

Clive Maund: Gold Market Update

COTs, sentiment and public opinion and a raft of technical indicators are all at low extremes that continue to indicate that gold is marking out a major low here and set to reverse to the upside before long. So you can safely ignore all the fair weather pundits who are coming out of the woodwork to proclaim gold’s bullmarket dead, and also the plethora of bearish articles appearing in the mainstream media at Big Money’s behest in order to squeeze the last drop of blood out of the little guy before the next big rally starts.

Last week’s update was probably the most bullish we ever produced, and the picture hasn’t changed much since, except that the dollar and Treasuries have broken out upside, but for reasons that we will come to later this won’t stop gold reversing to the upside, and public opinion has become even more negative, which of course is bullish.

SilverSeek: Silver Market Update

The big story with silver is that the Commercials are continuing to unwind their earlier massive short position at a very rapid rate, and of course booking massive profits in the process. We had pointed out in the last update that until their short positions eased further, silver was likely to back and fill and that’s what happened last week, as after a 4-day rally into Tuesday, silver dropped back for the rest of the week to make a new intraday low on Friday.

We can see this latest action on the 8-month silver chart below, which shows that after the high-volume capitulation panic low of the preceding week, silver staged a 4-day rally towards a resistance level before turning lower again and heading back to the vicinity of its lows. On Friday it bounced back quite strongly from intraday lows, leaving behind a bullish “spinning top” candlestick on its chart, like gold, which is a bullish sign, especially as it occurred at a support level and at its channel support line – this may mark the final low for this downtrend.

Silver Coin Investor: Silver Prices Are About To Explode!

One of the main motivators for investing in silver centers on the fact that silver prices are sure to increase—in a big way.

The big question is not whether silver prices will rise, but when. It may not take place this week or even this year, but it is certainly inevitable and will likely come soon. This dramatic increase in price will make any investment in silver, no matter how small or large, look unbelievable.

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1 Comment

reflector's picture
Status: Gold Member (Offline)
Joined: Aug 20 2011
Posts: 279
sinclair predicts coming industrial boom?

while i am a big fan of jim sinclair and read jsmineset every day, i don't know what to make of his above comment:

"The new normal in Gold, the "Comet Gold Resistance Movement," is your ticket to a sound monetary system. This will be followed by a period of long-term industrial growth as the world has never seen based on ultimate money, forced by the actions of the market place, not a product of any numbered group, be it G20, or G anything."

how will this long term industrial growth be achieved? where will the resources such as raw materials and fuel come from, to power this industrial growth? my tendency is more to believe CM and the story of limits to growth / SRS rocco's falling ore grades, etc, - it just makes more sense to me, intuitively.

for decades we have over-spent, over-borrowed, over-indulged, and the party is coming to an end.

i see the future as being one in which we are forced to make do with less, learning to live within our means.


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