Gold & Silver Digest: 3/7/13

Adam Taggart
By Adam Taggart on Thu, Mar 7, 2013 - 7:49pm

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.

3/7/13 7:28 PM EST US close metals price quotes from Finviz

Reuters: Gold drops as stimulus hopes fade, payrolls eyed

NEW YORK, March 7 (Reuters) - Gold fell on Thursday after the European Central Bank and the Bank of England did not hint at more economic stimulus, and as encouraging U.S. jobless claims data fuelled optimism about the upcoming nonfarm payrolls report.

The metal's 0.5 percent decline snapped a two-day winning streak, marking its biggest daily decline in a week. Bullion dropped after the ECB gave no clear hints of further monetary easing and the BOE decided not to restart its gilt purchases plan. 

The gold market now turns its focus to Friday's all-important U.S. nonfarm payrolls report for February. Signs of continuing recovery in the job market could prompt the Federal Reserve to halt its economic stimulus earlier than thought.

CNBC: Gold Warnings Surge as Banks Jump Off Bandwagon

Nomura forecast gold prices will fall in 2013, on Thursday, becoming the latest bank to turn bearish on the precious metal which has been a favorite hedge for investors who fear aggressive monetary stimulus will lead to rising inflation.

"For the first time since 2008, in our view, the investment environment for gold is deteriorating as economic recovery, rising interest rates and still benign Western inflation (for now) will likely leave some investors rethinking their cumulative $240 billion investment in gold over the past four years," wrote Nomura analysts in a sector note on Thursday.

India Times: Investors dump gold ETPs, seek growth assets: BlackRock

LONDON: Investors pulled $5.6 billion from gold exchange-traded products (ETPs) in February after poor performance by the yellow metal, but appetite for riskier, growth-oriented industrial metals ETPs remained intact.

In February, the gold price dropped for the fifth month in a row, with the S&P GSCI Gold Index off 5.04 per cent. The world's largest gold-backed ETP had its biggest monthly outflow since inception as investors sought better returns.

CNBC: Gold Bears, Beware! Don't Take On Central Banks

As gold falls out of favor with investors in a "risk-on" trading environment, one expert says the market bears should think carefully about betting against the precious metal at a time when central bank demand for gold remains strong.

"When you see central bankers acquiring gold, you can kind of take it like this: You don't fight in the stock markets when the Fed (U.S. Federal Reserve) is easing, so you wouldn't want to fight the central banks when they're buying gold, because they have deep pockets," Philip Silverman, managing director at Kingsview Management in New York told CNBC on Thursday.

Market Watch: The secret bull market in gold

Have you heard about the new boom in gold?

You won’t hear about it in the usual places. Everywhere you turn these days, all you hear is that gold is down, it’s finished, it’s heading for something called a “death cross,” which sounds terrifying. But away from the headlines, gold just rocketed to a new, all-time high.

Where? In Japan — the world’s fourth largest economy.

Acting Man: Gold Stocks and Gold, Technical and Sentiment Update

A Possible E-Wave Interpretation

A few trading days ago a friend (who prefers to remain anonymous) sent us an Elliott wave interpretation of the XAU which we wanted to share with our readers. Although the recent downtrend has become even more extended since this chart was made, this possible wave count interpretation isn't altered because of this. What we like about the interpretation (apart from the fact that it basically sees the recent weakness as a large degree correction of the uptrend from the 2008 low) is that it fits well with the mess of overlapping waves near the highs. There was no clear impulse move into a classic blow-off top, which is what usually happens with gold stocks at the end of a bull market.

Quest: Still Mining Gold in the Golden State

Since California became a state in 1850, it has had a gold industry: sometimes booming, sometimes just thriving and sometimes under its own version of Prohibition. Lately California gold has become an endangered species. The last producers in the Mother Lode are down to less than a handful, but it looks like the industry is ready to resume.

Gold was always known in the mountains of California, even before James Marshall famously spotted nuggets in his new millrace near Coloma on 24 January 1848. But Marshall's find sparked the first serious flush of gold production as thousands of men waded into the Sierra Nevada rivers, sifting the gravel with their pans and sluices. They've been there ever since, ranging from weekend panners to elaborate syndicates. It was the syndicates that ruined things for everyone else with their notorious hydraulic methods. Before the courts shut down the industry in 1884, operations progressed from the gravel terraces of the Central Valley into the mountains, where hydraulickers stripped large swaths of land of their woods and soils and sent the waste sediment downstream to smother the farmlands of the Central Valley.

CaseyResearch: Hi Ho Silver: Making the Case for This Precious Metal

Even though the newsletter I write for Casey Research is focused primarily on gold, our metals investments cover all the precious metals, and when warranted, some base-metals plays too. And with the markets in the state they are, I want to say something about silver..

My talk at the Vancouver Resource Investment Conference in January was titled Is D-Day for Silver Approaching?, and highlighted the delicate balance between supply and demand. I concluded that there would be insufficient metal to meet a major spike in investment demand if it were to occur, leading to all kinds of negative consequences for those who don't own silver (and lots of wonderful rewards for those who do).

WealthDaily: The Silver Rally is Starting

"The U.S. Mint has temporarily sold out of 2013 American Eagle silver bullion coins. As a result, sales are suspended until we can build up an inventory of these coins."
— U.S. Mint

The U.S. Mint started taking orders for 2013 American Eagle silver coins on January 7. By the end of the day, the Mint had sold 3.9 million coins.

Ten days later, on January 17, the Mint had sold 6 million coins — and its silver supply was exhausted.

The U.S. Mint is now rationing coins to dealers. More than 7 million have been sold, nearly 1 million so far in March.

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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