Gold & Silver Digest: 3/18/13

Adam Taggart
By Adam Taggart on Mon, Mar 18, 2013 - 7:06pm

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.

3/18/13 7:38 PM EST US close metals price quotes from Finviz

Reuters: Gold hits 2-1/2 wk high as Cyprus spurs safe haven buying

Gold prices hit their highest level since late February, with some investors drawn to the precious metal's safe haven properties as a radical bailout package for Cyprus shook sentiment in the euro zone.

The euro zone agreed on Saturday to hand Cyprus a bailout worth 10 billion euros ($13 billion), but required depositors to forfeit up to 10 percent of their savings, shaking confidence in banks across the continent.

Silver Bear Cafe: CONFISCATION: Panicked Europeans Rush ATMs as Leaders Move To Seize Funds Directly From Bank Account Holders

Over the last few years political and financial leaders in Europe and the United States have implemented policies, regulations and bailouts costing global taxpayers trillions of dollars with the promise that these measures would lead to economic growth and recovery.

What happened in Europe today is yet further proof that nothing they’ve done has fixed the underlying fundamental issues surrounding the events that led to the crash of 2008.

CNN Money: Gold bugs are back ... sort of

Gold is making a comeback, at least for today.

The precious metal shot above $1,600 an ounce Monday, as rattled investors looked for safe spots to park off while Cyprus sorts out its banking issues. Over the weekend, it seemed like the tiny nation was going to get its 10 billion euro bailout and it would be business as usual.

But then the strings were attached, in the form of a tax on all bank deposits. That caused Cypriots to swarm ATM's in an effort to pull their money out before the tax went into effect.

Bloomberg: Bullish Bets Jump Most Since July as Gold Rebounds: Commodities

Investors increased wagers on a commodity rally by the most in eight months as signs of a U.S. economic recovery bolstered the outlook for demand and drove rallies in crude oil, cotton, copper and gold.

Hedge funds and other large speculators raised net-long positions across 18 U.S. futures and options in the week ended March 12 by 30 percent to 528,680 contracts, the biggest gain since July and up from a four-year low the previous week, U.S. Commodity Futures Trading Commission data show. Money managers raised bullish bets on corn by 39 percent, cotton holdings were the highest since 2010, and gold wagers increased 9 percent.

Forbes: CFTC Wants To Fix The London Gold Fix

So is the London gold fix a fix? U.S. derivatives-market regulators think it might be.

The U.S. Commodities Futures Trading Commission is no doubt absolutely within its rights to question the use of certain prices as reference points (aka “marks”) in U.S. transactions. Joining the International Roundtable on Financial Benchmarks three weeks ago, CFTC Commissioner Bart Chilton said he also thought many other markets might deserve attention, too.

What is the London gold fix, and why does it exist? The fixing exists because, in the physical bullion market, there isn’t any single price at any one time. Instead, all the different bullion banks and dealers quote their own prices direct to their clients. So the deals they strike are unique, with no centralized “clearing house” or “recognized exchange” reporting those deals as some kind of official price.

Forbes: Buy Gold And Float Shrink

For the first time ever in the history of the stock market prices are at all time highs and at the same time the U.S. economy is simply not growing net of inflation. Many of you have to be wondering how to invest for the future in this uncertain time.

Besides recommending you all subscribe to Biderman’s Market Picks (pardon the self promotion), I would suggest putting new money right now into gold and a portfolio of companies shrinking the trading float.

Christian Science Monitor: Earthquake gold: Earthquake movements turn water into gold

Earthquakes have the Midas touch, a new study claims.

Water in faults vaporizes during an earthquake, depositing gold, according to a model published in the March 17 issue of the journal Nature Geoscience. The model provides a quantitative mechanism for the link between gold and quartz seen in many of the world's gold deposits, said Dion Weatherley, a geophysicist at the University of Queensland in Australia and lead author of the study.

When an earthquake strikes, it moves along a rupture in the ground — a fracture called a fault. Big faults can have many small fractures along their length, connected by jogs that appear as rectangular voids. Water often lubricates faults, filling in fractures and jogs.

Chicago Tribune: JPMorgan wins dismissal of silver price-fixing lawsuit

JPMorgan Chase & Co has won the dismissal of a nationwide investors' lawsuit accusing the largest U.S. bank of conspiring to drive down silver prices.

U.S. District Judge Robert Patterson in Manhattan said the investors, who bought and sold COMEX silver futures and options contracts, failed to show that JPMorgan manipulated prices at their expense, including by amassing huge short positions that were not justified by market events at the time. Arizona lawmakers back gold, silver as currency

PHOENIX - Arizona Republican lawmakers say privately minted gold and silver coins should be considered legal tender.

The bill advanced in a 4-2 vote by a House committee Monday states that gold and silver is money and therefore shouldn't be subject to tax or regulation as property.

Proponents say the value of the dollar is on the decline. Businesses wouldn't be required to accept gold or silver under the bill.

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1 Comment

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Palladium reflects reality.

Gold and silver might be manipulated but Palladium has been overlooked.

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