Gold & Silver Digest: 4/9/13

Adam Taggart
By Adam Taggart on Tue, Apr 9, 2013 - 5:34pm

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.

4/9/13 6:32 PM EST US close metals price quotes from Finviz

Reuters: Gold up on volatile currency moves but weakness seen

Gold rose on Tuesday as volatility in the currency market triggered by Japan's aggressive monetary easing plan lifted bullion's appeal as a hedge against inflation and currency fluctuations.

Silver, often more volatile and speculative than gold, rose 2.5 percent for its biggest one-day gain in five

Bullion climbed to a one-week high as the dollar fell against the euro and the yen, with the Japanese currency recovering from a four-year low set against the greenback earlier in the session. 

Recommended Book:
Rich Dad's Advisors: Guide to Investing In Gold and Silver:
Protect Your Financial Future


Wall Street Journal: Japanese Rush to Sell Gold as Price in Yen Jumps

The weak yen has triggered a gold rush, literally, among Japanese households, reflecting how bold new economic policies are shaking up long-entrenched deflationary attitudes, freeing up dormant assets, and sparking new economic activity.

While gold prices have softened globally, the declining value of the yen against the dollar makes the precious metal worth a lot more in Japan. Japanese families are now scrambling to dig out gold objects from closets and jewelry boxes, and selling it to metals dealers, converting their passive assets into cash that some say they plan to put to work on everything from vacations to children's allowances.

Reuters: Merk Investments close to launch redeemable gold ETF -filing

Merk Investments is close to launching a gold-backed exchange-traded fund that offers investors the option to take physical delivery of gold bullion, its regulatory filing with the U.S. Securities and Exchange Commission showed.

The California-based firm said in the amended registration filing that Merk Gold Trust will be listed under the ticker symbol "OUNZ" on the New York Stock Exchange Arca platform.

The New American: Arizona Legislature Approves Gold and Silver as Money

As trust in the Federal Reserve System and its fiat dollar continues to plummet worldwide, legislation making gold and silver into legal tender was given final approval by Arizona lawmakers on Monday when the Republican-led state House of Representatives voted overwhelmingly in favor of the bill. With tremendous grassroots support, an earlier version of the precious-metals measure sailed through the GOP-controlled Arizona Senate in late February.

If the legislation is signed by Gov. Jan Brewer, a Republican, Arizona would become the second state to officially define gold and silver as legal tender. Utah adopted a similar law two years ago, garnering widespread praise among free market-oriented economists and sending shockwaves through the financial community. Since then, as the privately owned Federal Reserve and its wild policies have come under increasingly fierce criticism, the movement to restore sound money has been spreading across America like wildfire. Over a dozen states already have similar efforts underway.

ETF Daily News: Jim Rickards: Gold Is Always Rallying Somewhere

Gold Silver Worlds: In his latest TV appearance, Jim Rickards (author of the best seller Currency Wars) talks on Bloomberg about how currency wars and gold dynamics are coming together.

"Gold is 25% up in the last 3 months, but it’s up in Yen, not dollars. This is where currency wars and gold dynamics come together. When you think about cross rates it’s a zero sum game. Not every currency can go down against every other currency at once. Gold is always rallying somewhere; right now it is rallying in Yen. It you want to be fancy, you are short Yen and buy gold. When the Yen gets to 110 then, you want to short sterling and buy gold. At the end of the day you will come back to gold in dollars. Gold is not going to do much in [US] dollars this year. I look for a dollar move late this year or in 2014. Meantime you can always make money in gold, as “it is always 5 o’clock somewhere.”

Resource Investor: Every gold coin has two sides

Just as every coin has two sides, every data point that doesn’t meet expectations usually has an upside somewhere. For instance, although the gold price has fallen with the strengthening U.S. dollar, the yellow metal is appreciating in Japanese yen. So when negative news about the economy came out this week, along with the U.S. Labor Department reporting that the country added only 88,000 jobs in March, investors found reasons to be encouraged.

For one, the Federal Reserve is apt to maintain its stimulative easing course and keep interest rates low. With inflation above the current interest rate, a negative real interest rate increases the attractiveness of U.S. dividend-yielding stocks and gold. I believe both investments will continue to be viewed as the safe havens of the world.

Bull Market Thinking: Comex Gold Inventories Collapse By Largest Amount Ever On Record

A stunning piece of information was brought to my attention yesterday. Amid all the mainstream talk of the end of the gold bull market (and the end of the gold mining industry), something has been discretely happening behind the scenes.

Over the last 90 days without any announcement, stocks of gold held at Comex warehouses plunged by the largest figure ever on record during a single quarter since eligible record keeping began in 2001 (roughly the beginning of the bull market). See chart below.

Zero Hedge: Short Squeeze? Silver Surges Most In 7 Months

Following yesterday's note [2] on the near-record level of shorts in Silver futures, it is perhaps just a coincindence that spot silver prices are surging today - their biggest jump in seven months. Gold is also having one of its best 3-day runs in the last nine months, yet both moves are peanuts compared to what is going on in the "electronic" asset arena, namely the policy vehicle formerly known as "stocks" and BitCoin, both of which are racing for the title of most insane parabolic bubble ever.

SilverSeek: Tungsten Silver? Or More Salt in the Open Wound?

Here we go. With worldwide physical demand for the poor man's metal surging and the US Mint about the run out of silver eagles any minute now- again, we received the following from reader Simon.

Nothing like a counterfeit coin scare to further quell excitement in those who have not otherwise noticed the not-for-profit, right on schedule, drubbing handed to paper silver this year.

New silver investors may now add yet one more reason to avoid the heavy, bulky, unfashionable, and high-premium reality - and instead be led directly to the SLV slaughter house of (rehypothecation).

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.

1 Comment

westcoastjan's picture
Status: Platinum Member (Offline)
Joined: Jun 4 2012
Posts: 577
this just in - big gold selling by Cyprus

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