Gold & Silver Digest: 4/4/13

Adam Taggart
By Adam Taggart on Thu, Apr 4, 2013 - 8:24pm

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.

Reuters: Gold hits 10-month low despite Japan stimulus, hopes for ECB cut

Gold fell for a third straight session on Thursday, hitting a 10-month low as unprecedented monetary stimulus from the Bank of Japan and hopes for another European Central Bank rate cut failed to stem heavy selling of bullion by funds.

Palladium dropped around 3 percent, dragged down by a commodities selloff led by crude oil as a four-month high in U.S. initial jobless claims dented demand hopes.

Data showed investors pulled more money out of gold exchange-traded funds. Bullion is now testing long-term chart support around $1,525 an ounce, and analysts warned of further losses if it breaks below that mark.

The Economist: The gold bears emerge

GOLD touched $1541 an ounce today, and having fallen 18% from its high, is nearing the conventional definition of a bear market (a 20% decline). All this is occurring as the Bank of Japan cranks up the monetary presses, there is no sign of a change in expansionary monetary policy at the Fed, and an expectation that the Bank of England will ease policy once Mark Carney takes over. 

Indeed, gold's fall contrasts with a sudden boom in the price of another alternative currency, Bitcoin (although the price has been hit today by attacks on the website). As Felix Salmon notes in an excellent post on the virtual money, enthusiasts for Bitcoin and gold come from separate social niches so this trend divergence is explicable, even though one might think their fundamental similarities (a restricted supply) might prompt them to be correlated in normal circumstances. Another explanation for the gap is that the Bitcoin bubble, like any other, is a case of investors piling into an illiquid asset that has suddenly made the news (the story was on the front of the FT today).

Yahoo Finance: Will Gold Absorb the €uro’s Refugees?

Say what you will about the news cycle, but it is amazing how quickly stories go from dominating our thoughts on the front page, to taking their place alongside countless other dramas that get stored in our mental informational warehouses.

A timely example of this is Cyprus. The beleaguered island nation was thrust into the global spotlight two weeks ago as its bank-led economy and secretive depository system was being publicly dismantled in order to stave off a government default. The very existence of the Eurozone was being questioned.

Forbes: Stocks Under Suspicion, Gold Bugs Better Watch Out Below

The market saw a rare bout of heavy selling in 2013 as multiple faulty signals finally became too much for the indices to overcome.  So far in 2013, any weakness has been very contained, with most down days being bought to keep the macro uptrend firmly intact.  Lo and behold, futures were up seven handles when we walked in this morning, but faded after jobless claims reached their highest levels in four months.

Could we be headed for the familiar resilient scenario, or could you potentially look to fade this up open?  The next few sessions should be very interesting.

Bull Market Thinking: Gold Trader: “Once This Bottom Is Formed, We May Never See Gold At These Levels Ever Again.”

I had the chance yesterday to speak with technical gold trader Gary Savage, publisher of the “Smart Money Tracker”, daily gold market commentary and trading service, which has outperformed most of the world’s hedge funds in 2011 and 2012.

It was a powerful conversation as Gary commented on the panic selling we’ve seen over the last few days, sharing his view that “once this bottom is formed, we may never see gold at these levels ever again.”

Money Morning: This Gold Prices Chart Points to a Looming 24% Jump

Despite a pullback in gold prices, hold on to your gold. In fact, look to buy more.

You see, thanks to record highs for the U.S. stock market, a notable shift from defensive assets to "risk-on" trades has occurred.

The yellow metal slumped 1.4% to $1,552.80 Wednesday marking a nine-month low. That's after gold prices slid below $1,600 an ounce in Q1 on hints of a global economic rebound. The slide prompted market participants to shed gold holdings.

GoldSilver.com: Ask The Expert - Chris Powell of GATA

In this exclusive interview, Chris Powell answers questions from our readers about the gold and silver markets and his outlook on the economy. Chris Powell is one of the founding members and secretary/treasurer of the Gold Anti-Trust Action Committee (GATA).

Silver Bear Cafe: U.S. Mint Sales For March: U.S. On Pace To Use All Domestic Mine Production For Silver Eagles

Pay Attention GLD, PHYS, PSLV, and SLV investors - the U.S. Mint's full March sales numbers show the strongest March in terms of silver eagles sold. We will go inside the numbers to show this to investors, but the dichotomy between the silver price and silver sold seems to continue, with strong physical investment demand being opposed by relentless paper sales.

Analyzing the U.S. Mint Sales Numbers

When analyzing sales numbers it is important that investors go past the headlines and dig deep into the true nature of the sales. For brevity we are only showing the last few years of sales, but for doing comparisons we have used data from the beginning of the current bull market in 2001.

KXAN.com: Police find $7.5M in gold bars in car

Italian border police intercepted a ton of gold bullion worth $7.5 million hidden in a car.

The gold bars were wrapped in newspaper and stashed in an under-floor storage compartment. They didn't bear any engraving, and their origin is unknown.

The car's 53-year-old driver was accompanied by his wife and their three young children.

FoxNews: NM to treasure hunters: You can't dig for Fenn's gold, and if you find it, you can't keep it

A collection of gold and jewels that a Santa Fe antiquities collector says he stashed in the mountains north of Santa Fe has generated so much interest from amateur treasure hunters that some have put their lives in jeopardy or been cited for illegally digging on public lands.

But authorities are warning people about more than being careful and following the law. They also note finders may not be keepers.

Note: If you're reading this and are not yet a member of Peak Prosperity's Gold & Silver Group, please consider joining it now. It's where our active community of precious metals enthusiasts have focused discussions on the developments most likely to impact gold & silver. Simply go here and click the "Join Today" button.

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