Gold & Silver Digest: 3/14/13

Adam Taggart
By Adam Taggart on Thu, Mar 14, 2013 - 5:57pm

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.

3/14/13 5:52 PM EST US close metals price quotes from Finviz

Forbes: Gold Ends Modestly Up as Buyers Step in When U.S. Dollar Index Sells Off

Gold prices ended the U.S. day session with modest gains and near the daily high Thursday, on a late-day bounce. Bargain hunters stepped in to buy the dip in gold prices at the same time the U.S. dollar index sold off from higher levels seen earlier in the day. April Comex gold last traded up $2.60 at $1,591.00 an ounce. Spot gold was last quoted up $4.60 at $1,592.75.  May Comex silver last traded down $0.158 at $28.80 an ounce.

While the stronger greenback recently has been a bearish factor for the gold market, it can be argued the yellow metal has held up surprisingly well given the persistent strength of the dollar. Gold bulls are hoping that’s an early clue that a near-term low is in place, or close at hand, for their metal. Recent stronger U.S. economic data recently has also been a bit negative for gold. But again, it can be argued gold prices have held up fairly well in the wake of that stronger U.S. data.

Yahoo! Finance: The Uptrend in Gold Is Broken, Next Stop Could Be $1000: Don Hays

Gold is getting a second look in many circles, which is probably no surprise considering the recent rebound in the dollar, the record run of stocks, and the never ending saga of sequesters and threatened service cuts emanating from Washington. This after the precious metal is in the throes of an 18-month sell-off from its all-time high of $1900 in the fall of 2011.

While many have argued that gold has finally found support at $1500, Don Hays, the founder and president of Hays Advisory in Nashville, is not one of them.

"We think of gold as nothing but a fear index," Hays says in the attached video. "It moves up when people are afraid."

Bloomberg: Here's Why Now Is the Time to Buy Gold: Bianco

March 12 (Bloomberg) -- Jim Bianco, president at Bianco Research, talks with Bloomberg's Mark Barton about the gold market and why now is the time to buy. He speaks on Bloomberg Television's "Countdown."

BusinessWeek: Gold Climbs on Demand for Alternative to Declining Dollar

Gold futures rose for the fifth time in six sessions as a decline by the dollar boosted demand for the precious metal as an alternative investment

The greenback dropped as much as 0.6 percent against a basket of currencies after reaching the highest since August. The number of Americans filing claims for jobless benefits averaged 346,750 in the past four weeks, the lowest since March 2008, government data showed today. Last month, gold fell 5 percent as the dollar gained 3.5 percent.

Global Research: Doubts About America’s Official Gold Holdings: The US Gold Reserve Audit

Everyone is talking about the audit of USA’s gold reserves. The presence or possible absence of the yellow metal in the vaults and basements of the American repository is a definite source of anxiety in the United States and beyond. For example, the American congressman Ron Paul is claiming for many years a full audit of the US official gold reserves, which are on the balance sheet of the Department of Finance (Treasury) since 1934, but the issue is extremely intricate…

Wall Street Journal: Barrick Gold Says Shipment Detained in Domincan Republic

TORONTO—Canada's Barrick Gold Corp. said Thursday that a gold shipment from one of its biggest and fastest-growing mines has been detained by customs officials in the Dominican Republic amid a spat over taxes.

A Dominican customs official indicated the seizure was due to a paperwork discrepancy. But it comes just weeks after the Dominican government said it wants more taxes from the massive Pueblo ...

Politico: President McKinley signs Gold Standard Act, March 14, 1900

On this day in 1900, President William McKinley signed the Gold Standard Act, which established gold as the sole basis for redeeming paper currency. The act halted the practice of bimetallism, which had allowed silver to also serve as a monetary standard. It set the value of gold at $20.67 an ounce and valued the dollar at 25.8 grains of gold.

In the run-up to passage of the act, the nation went through a decades-long epic political battle over the relative value of gold and silver — a battle that tested whether one of those precious metals should be preferred over the other in the U.S. monetary system. Introduction of paper currency during the Civil War had complicated this debate because it promised to redeem the money in either gold or silver upon demand.

Every few months, star U.S. investment manager Jeffrey Gundlach gives a webcast outlining where in the world he sees the best money-making opportunities.

In his latest webcast, Mr. Gundlach made three simple calls. Buy silver. Pick up 30-year U.S. Treasury bonds. And for stock investors, go to Japan. That Asian market, even though it’s surging, could rise more than 20 per cent in U.S. dollar terms this year.

Silver Bear Cafe: Where's The Gold – Or The Silver?

The ever continuing movement of vast amounts of gold and silver to the East in particular begs the question of how physical demand is being satisfied elsewhere.

Some years ago the Wendy’s hamburger chain ran what was probably its most successful advertising campaign ever where the punchline – ‘Where’s the beef’ - was uttered by a little old lady.  How much more so might this be relevant to the gold and silver markets today where the volumes traded on the key markets exceed the amount of physical metal available many, many times over.  As numerous observers have pointed out this opens them up to accusations of severe market manipulation and seems to be something the various financial authorities seem unable, or unwilling to take a serious interest in curtailing.

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