Gold & Silver Digest: 3/8/13

Adam Taggart
By Adam Taggart on Fri, Mar 8, 2013 - 5:38pm

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.

3/8/13 5:31 PM EST US close metals price quotes from Finviz

Market Watch: Gold defies price pressures to finish higher

Gold futures settled higher Friday, defying price pressures from a sharply higher dollar and stronger-than-expected U.S. jobs growth, with some analysts touting the metal’s perseverance as a sign of positive change in sentiment after a lackluster week and monthly declines.

“The small drop and quick recovery we saw in gold was a clear sign that gold has been oversold and has no more time for the bears,” said Jan Skoyles, head of research at The Real Asset Co. “The downturn in gold has no more to give.”

Barron's: Gold Bulls Don’t Like This Jobs Report, But Somebody Likes Gold

The drop in gold’s price this morning coincides with the release of the 8:30 a.m. jobs report, as you can see in this chart. Then the metal’s price snapped right back shortly after 10 a.m.

The jobs-figure details: 236,000 new U.S. jobs in February, outstripping the 160,000  economists expected. Meanwhile, the headline-grabbing unemployment rate fell two-tenths of a percentage point to 7.7%. That’s the lowest since 2008.

SPDR Gold Trust (GLD) and iShares Gold Trust (IAU), which entered Friday’s session a touch above their 2013 lows, were originally down about 0.6% apiece at the open. Now they’re ahead by 0.1% or so.

GoldSeek: COT Gold, Silver and US Dollar Index Report

The COT reports which we look at each week provide a breakdown of each Tuesday's open interest for markets in which 20 or more traders hold positions equal to or above the reporting levels established by the CFTC.   The weekly reports for Futures-and-Options-Combined Commitments of Traders are released every Friday at 3:30 p.m. Eastern time.   The short report shows open interest separately by reportable and Non-reportable positions.   For reportable positions, additional data is provided for commercial and non-commercial holdings, spreading, changes from the previous report.

Bull Market Thinking: Perth Mint: “We’re Not Seeing Any Fear Or Selling Action From Our Clients”

I had the great opportunity this week to connect with Bron Suchecki, head of analysis and strategy at The Perth Mint Australia. It was a fascinating interview, as The Perth Mint refines 10% of world gold production and stores over $3.5 billion dollars worth of vaulted precious metals on behalf of clients

Starting out with a little history on the Perth, Bron explained that,“The British Government needed a branch in Perth, because there was so much gold coming out of the Western Australian gold fields, [and] it was just impractical to ship the raw dore from the mines over to the royal mint in the UK. [So] that’s how we started, and refining gold and making coins is a core thing that we’ve done our entire existence.”

Bloomberg: China Gold Imports From Hong Kong Drop First Time in Four Months

Gold imports by China from Hong Kong fell for the first time in four months in January after a surge in purchases in the previous months to meet Lunar New Year demand and as investors curbed buying on falling prices.

Mainland China bought 51,303 kilograms (51.303 metric tons) of gold, including scrap and coins, down from a record 114,405 kilograms in December, according to export data released by Hong Kong’s Census and Statistics Department yesterday. Mainland China doesn’t publish such data.

Reuters: Palladium ETPs report inflows even as gold funds sold off

Holdings of palladium-backed investment funds have climbed to 17-month highs this year even as physical gold funds report record outflows, with investors favouring metals with an industrial edge.

Palladium exchange-traded products (ETPs) saw their largest monthly inflow in a year last month of 127,855 ounces, Reuters data shows, well above their monthly average since early 2010 of 41,693 ounces.

Nearly 90 percent of those inflows were into ETF Securities' European palladium fund and the New York-based fund operated by its U.S. arm.

MarketWatch:The secret bull market 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.

The arrival of a new government in December, and the launch of Japan’s own brand of “quantitative easing,” or money printing, has sent the yen tumbling dramatically on the international exchanges. Lots more yen means each yen is worth less.

KingWorldNews:  Jim Sinclair - Expect $1,000 Days In Gold As West Battles East

Today legendary trader Jim Sinclair predicted that the gold market will shock market participants with $1,000 daily trading ranges as the West battles the East in the gold war.  Below is what Sinclair, who has been actively trading the markets for over half a century and whose father was business partners with legendary trader Jesse Livermore, had to say about what is now taking place and what to expect as the gold war continues to rage. 

Eric King:  “The volatility in gold that you expect to see, Jim, can you talk about that?  

Jim Sinclair:  “I believe you will see a $1,000 day (in gold), and I think you will see it on at least three occasions.  It’s not unimaginable if you go back to the market of the 1970s ... And it will happen because kicking and screaming, gold is going to drag the US into a position of a balanced balance sheet, or near-balanced balance sheet, if you assume that the gold the US claims to have in fact they do have, and the world will assume that....

SilverSeek: Silver Prices When the Traffic Lights are Blue Today

The view of the silver market from ten thousand feet away shows what is really going on behind the scenes. The manipulation of the market by deep pocket bullion banks with a hugely concentrated combined naked short position has become increasingly evident.

Furthermore, their market spoofing practices that involve dropping their bids to give the indication of a weak market and then quietly buying back their short positions for a profit are well known.

SilverSeek: Deflation and Silver Price Mechanics

The worldwide tug of war between the world’s major central banks has created a de facto currency war involving the competitive devaluations of major fiat currencies.

The move to debase national and multi-nation currencies like the Euro in virtually every major economy has fueled fear about reducing the standard of living and real wealth of everyone affected.

Risk On, Risk Off

In today’s artificially inflated economies, and from an investment standpoint, we exist in a world of “risk on, risk off” or RORO. In the currency, stock and precious metals markets, “risk on” will generally signal a flight to “risk assets”.

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