Gold & Silver Digest: 4/1/13

Adam Taggart
By Adam Taggart on Mon, Apr 1, 2013 - 11:48pm

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.

4/2/13 12:41 AM EST US close metals price quotes from Finviz

Forbes: Gold Ends Firmer on Weaker U.S. Dollar and Some Safe-Haven Demand

(Kitco News) - Gold prices ended the U.S. day session modestly higher Monday. The precious metal was given a boost by a weaker U.S. dollar index. There was also some fresh safe-haven buying interest in gold Monday as North Korea’s leader continues to make threatening comments toward the U.S. and South Korea. June Comex gold last traded up $4.20 at $1,599.90 an ounce. Spot gold was last quoted up $2.00 at $1,600.00.  May Comex silver last traded down $0.353 at $27.97 an ounce.

The North Korean situation is not a full blown geopolitical crisis—at least not yet—but the matter is of serious enough consequence that gold is receiving a modest safe-haven demand boost from investors. North Korea’s rhetoric will continue to be closely monitored by the market place, and could turn more serious very quickly.

Forbes: FOCUS: Speculators Cut Bullish Gold, Silver Positions -- CFTC

Large speculators cut bullish positions in U.S. gold futures and options, according to the most recent data released by the Commodity Futures Trading Commission, reversing some of buys they registered in the previous report.

Silver also saw speculators cut their bullish positions, with these traders very close to being neutral on the metal in the CFTC’s disaggregated version of the weekly commitment of traders report.

CNBC: Why a Gold Spike Is Coming

June gold futures have been in a tight consolidation pattern and appear poised for an explosive move, but in which direction?

Based on several global factors, I'm inclined to believe that the direction of the move will be higher. The dramatic down move in the Japanese yen, which has been a major factor in gold's weakness, seems to have lost momentum, as the markets have already priced in massive accommodation. A similar story has developed in the British pound, as that currency has found a base. The one currency that is not complying is the euro — and although the euro's near-term direction is lower, it shouldn't be able to drag gold down along all by itself.

The Daily Beast: Why the Rush to Sell Gold Coins is Drowning Out Real Critiques of Obama

John Podhoretz of Commentary tries to beckon conservatives onto the path of responsible and effective politics:

The notion that Obama is a dangerous extremist helps him, because it makes him seem reasonable and his critics foolish. It also helps those who peddle it, because it makes them notorious and helps them sell their wares. But it has done perhaps irreparable harm to the central conservative cause of the present moment—making the case that Obama’s social-democratic statism is setting the United States on a course for disaster and that his anti-exceptionalist foreign policy is setting the world on a course for nihilistic chaos. Those are serious arguments, befitting a serious antagonist. They may not sell gold coins as quickly and as well as excessive alarmism, but they have the inestimable advantage of being true.

The Raw Story: Gold trade booms in war-torn Syria

ALEPPO, Syria — Abu Salem used to sell lunchtime sandwiches to office workers in Syria’s commercial capital. Since a rebel offensive turned Aleppo into a warzone last July, he has been buying up their heirlooms.

In Syria’s northern metropolis, as across the Middle East, those who can afford to have traditionally invested in jewellery for their womenfolk, especially gold, to ward against a rainy day.

Reuters: Sudan made $2.2 billion from gold exports in 2012

Sudan exported $2.2 billion worth of gold last year and hopes to step up exploration with the help of Russian and Chinese companies, President Omar Hassan al-Bashir said on Monday, giving the first official figure.

Gold has now become Sudan's biggest export product, partially replacing oil revenues that had made up more than 50 percent of state income until 2011, when South Sudan became independent and took most oil reserves.

PressTV: Iran, Turkey resume gold trade despite US sanctions

Iran and Turkey have resumed their trade of gold for natural gas and made a USD-120-million deal in February, circumventing tough US sanctions against Tehran over its nuclear energy program.

Turkey exported almost USD 120 million worth of gold to Iran in February after it announced a moratorium in January, Reuters reported.

Data from the Turkish Statistics Institute (TUIK) showed that Ankara sold no gold to Tehran in January as banks and dealers implemented the February 6 US sanctions targeting Iranian oil revenues.

BBC: How much gold is there in the world?

Imagine if you were a super-villain who had taken control of all the world's gold, and had decided to melt it down to make a cube. How long would the sides be? Hundreds of metres, thousands even?

Actually, it's unlikely to be anything like that size.

Warren Buffett, one of the world's richest investors, says the total amount of gold in the world - the gold above ground, that is - could fit into a cube with sides of just 20m (67ft).

GoldSilverWorlds: Q1 2013 US Silver Eagle Sales Beats All Records

Only a week ago, we wrote how the physical silver investment demand is historically high. We got to that conclusion based on the physical holdings of all silver ETF’s combined, as well as the 2013 US Silver Eagle coin sales.

This is the table we published exactly one week ago. It shows the Q1 sales of each year since 2008. Obviously, March 2013 was not complete at that moment in time.

NASDAQ: Commodities Guru Eric Sprott - The Next Decade Belongs To Silver

The Finance News Network recently interviewed commodity hedge fund guru Eric Sprott:

Lelde Smits: Hello, I'm Lelde Smits for Australia's Finance News Network and joining me in Hong Kong is Eric Sprott, Chairman of Canadian-based asset manager, Sprott Inc. Eric, welcome back to the show and great to speak with you here at Mines & Moneyicon1.png.

We all know you're a big fan of precious metals. What do you believe are the biggest macro factors that will drive up their prices over the next five years?

Eric Sprott: Well it's sort of the same factors that have been operative for a long time; one is that I think there's a physical shortage of gold that's been supplied by the western central banks surreptitiously. We now have the tail winds of printing of money, we have the further tail wind of bank runs; and we may get one now as we see what's going on in Europe that we might experience another bank run. So those are the kind of key things that I watch right now.

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