Gold & Silver Digest: 3/12/13

Adam Taggart
By Adam Taggart on Tue, Mar 12, 2013 - 5:25pm

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.

3/12/13 5:24 PM EST US close metals price quotes from Finviz

Reuters: Gold rises on euro zone jitters, ETF flow eyed

NEW YORK, March 12 (Reuters) - Gold rose nearly 1 percent on Tuesday after a top European Central Bank official said the euro zone crisis was not over, but the metal remained vulnerable as redemptions in gold-backed exchange-traded funds continued, analysts said.

Bundesbank's chief Jens Weidmann, also a member of the ECB Governing Council, also said the German central bank had set aside billions more euros against what it deemed risky ECB moves. 

Bloomberg: Gold Sales From Soros Reveal 12-Year Bull Run Decay

Gold’s worst start to a year in a quarter century and the biggest sales by investors on record are increasing concern that bullion’s longest rally since the end of World War I is ending.

Investors sold 106.2 metric tons valued at $5.4 billion from exchange-traded products in February, the most since their creation in 2003, data compiled by Bloomberg show. Another 26.1 tons was cut since then. Credit Suisse Group AG and Barclays Plc say the 12-year rally will peak in 2013 and billionaire George Soros reduced his stake in the biggest ETP by 55 percent in the last quarter. Prices are within 5 percent of a bear market after the longest run of monthly losses since 1997.

FoxBusiness: Gold and Silver Grind Higher After Inflation Comment

On Tuesday, gold (NYSEARCA:GLDexternal-link.png) futures for April delivery, the most active contract, gained $13.70 to close at $1,591.70 per ounce, while silver (NYSEARCA:SLVexternal-link.png) futures for May increased 32 cents to finish at $29.17.

Both precious metals climbed higher as European Central Bank Governing Council member and Deutsche Bundesbank President Jens Weidmann reminded investors that the euro crisis is not over.

CNBC: Why $1,540 Is a Critical Level for Gold

The most important number for COMEX gold is $1,540 an ounce. This was the support level tested in October 2011 and in May 2012. It acted as a resistance level in June 2011.

This is the lower level of a long-term sideways trading band that has been in place since October 2011. This trading band developed after the peak high of gold near $1,924 in September 2010.

The upper edge of the trading band is the strong resistance level near $1,800. This resistance region was tested in November 2011 and in March 2012 and again in October 2012.

CNBC: Gold Rises, Yet Traders Can't Agree on Its Next Move

Gold had a rare banner day in trading markets on Tuesday, as a combination of short covering and hopes for more central bank easing sent the yellow metal to a two week high. Still, traders aren't sure what's next for bullion, which has taken a battering since the start of 2013.

Traders rushed to buy back gold after an European Central Bank official suggested monetary easing might continue. That weakened the euro and made bullion appear more attractive as an inflation hedge.

Seeking Alpha: Did Gold And Silver Junior Mining Stocks Just Bottom?

Precious metals are off to a fast start this morning as speculation grows as to whether an enduring bottom is now in for gold and silver prices.

There have been many headwinds for the metals in recent months - the failure to make new highs after the latest rounds of Fed quantitative easing, a surging trade-weighted dollar, etc. - and hedge funds have clearly preferred equities, helping to drive U.S. stock indexes to record highs.

GoldSilver.com: Shanghai Gold Exchange Sees Volumes Jump 24% In Year

Gold gained for the third straight session, the longest rally this year, on the realisation that the European crisis may worsen. Fitch Ratings cut Italy’s credit rating by one level on Friday. Fitch downgrading Italy is likely providing support as is robust demand in Asia, particularly China.

Average daily trading combined volumes on the three main gold contracts on the Shanghai Gold Exchange in the first two months of the year jumped 24% on the year, according to Reuter’s calculations.

Silver Bear Cafe: Trust Your Instincts on Gold

Vedran Vuk here, filling in for David Galland. David's schedule is packed with events down in Argentina including the Harvest Celebration at La Estancia de Cafayate, so I'll be steering the ship for the next few weeks. First today, we'll have an article from Dennis Miller on when to trust your instincts on your gold holdings. Then, I'll address the age-old question, "How come you could raise a family on a single paycheck back in the day and now you can't?" I'll give you one big reason why, as well as a way to make that old standard a reality again.

Also, make sure to check out Dennis' recent interview on Real Money Radio with David Holland (to get right into the part with Dennis, skip about the first five minutes of the program). Dennis really knocked this interview out of the park. He tells his retirement story of having a secure nest egg of CDs ripped out from under him, thanks to the 2008 crisis.

Resource Investor: 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.

King World News: Silver To Eclipse $100 On Skyrocketing Chinese Demand

With gold and silver rebounding today, acclaimed money manager Stephen Leeb told King World News that silver is now setting up to eclipse $100.  “Silver under $30 is a joke,” Leeb said.  Leeb believes that China, which has been the primary driver in the gold market, is now going to push silver over $100 as their consumption of silver is poised to skyrocket.  Here is what Leeb had to say in this powerful, exclusive interview:  “Yesterday headlines were saying there is massive demand for photovoltaics in Japan and China.  There is also massive demand for silver in the Middle-East for this type of energy infrastructure.”

The Gold Report: Recycling, Not Mining, Is the Future for Securing Immediate Platinum Group Metal Supply

The biggest new source for platinum group metals just might be what Jack Lifton calls "the rubber tire mine." Noting that removing the catalytic converter from a car's emission system produces a rate of return that rivals the production rates of the South African platinum giants, Byron King agrees that recycling is the wave of the future for platinum, palladium and rhodium. Welcome to the 21st century—find out how to play it in this Metals Report interview.

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4 Comments

jcat3022's picture
jcat3022
Status: Bronze Member (Offline)
Joined: May 9 2012
Posts: 78
Ahhhh Bloomberg news

Forgot to mention that Soros sold his paper gold and could have very well taken physical delivery.  I keep asking myself how long can the MSM's propaganda work?  Is it feasible that their smear campaign and The Fed's manipulation really suppress the price for the long haul?

janb's picture
janb
Status: Bronze Member (Offline)
Joined: Mar 11 2008
Posts: 61
China to limit the gold foreign reserves

Did anyone see this (link below)?  This sounds like China is collaberating to keep gold price suppressed.  Seems like a significant development.

http://www.bloomberg.com/news/2013-03-13/china-may-limit-gold-to-2-of-fo...

Anyone care to comment?  Jan

thebrewer's picture
thebrewer
Status: Silver Member (Offline)
Joined: Nov 7 2012
Posts: 110
Bloomberg

Bloomberg has little credibility left. They are mostly just a mouthpiece for Wall St.

jcat3022's picture
jcat3022
Status: Bronze Member (Offline)
Joined: May 9 2012
Posts: 78
more propaganda

“If the Chinese government were to buy too much gold, gold prices would surge, a scenario that will hurt Chinese consumers,”... how exactly would that hurt the consume?  The chinese people have been buying gold for at least the last few years.

propaganda from the chinese gov't and Bloomberg the way I read it.

 

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