Gold & Silver Digest: 4/10/13

Adam Taggart
By Adam Taggart on Wed, Apr 10, 2013 - 6:22pm

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.

4/10/13 6:27 PM EST US close metals price quotes from Finviz

Reuters: Gold drops 1.5 pct on Fed stimulus fears, Cyprus

Gold fell 1.5 percent on Wednesday, its biggest one-day drop in 1-1/2 months, hit by signs that the U.S. Federal Reserve is inching closer to ending its monetary stimulus program and by  Cyprus's plan to sell its gold reserves to raise cash.

Panic selling sent gold down to near $1,550 an ounce earlier in the session after European Commission documents showed Cyprus plans to sell 400 million euros worth of gold reserves to finance part of its bailout. 

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AP: Gold drops on speculation Fed could pull support

Gold prices slumped Wednesday on speculation that Federal Reserve officials could start pulling back on support for the economy before the year is out.

Minutes from the Fed's meeting last month showed that some central bank officials want to end the Fed's bond-buying program relatively soon, saying the costs could eventually outweigh the benefits. The Fed's stimulus effort has kept interest rates low and driven traders into precious metals like gold.

The news helped push gold prices down 1.8 percent. Contracts for June delivery fell $27.90 to settle at $1,558.80 per ounce.

The Wall Street Journal: Goldman Sachs: Short Gold!

Goldman Sachs GS +2.01% is chasing gold to the downside.

With the precious metal inching closer to a bear market, the firm tells clients that now’s the time to short gold.

Goldman slashed its short- and long-term gold forecasts, a move that comes about six weeks after the firm had already turned even more bearish on the metal. Goldman now sees gold ending the year at $1,450, a forecast that came down from $1,600 at the end of February and $1,810 prior to that.

Reuters: Gold drops on Cyprus bullion sale plan

Gold slipped to session lows on Wednesday, pressured as European Commission documents showed Cyprus plans to sell 400 million euros' worth of reserves to finance part of its bailout - a move that marks the biggest euro zone bullion sale in four years.

Although obstacles stand in the way of euro zone central banks selling gold to meet financing needs, the Cypriot move will focus attention on other heavily indebted euro zone gold holders.

Bloomberg: China Gold Imports From Hong Kong Rebound on Decline in Prices

Gold imports by China from Hong Kong jumped 89 percent in February, rebounding from a decline the month before, as lower prices lured buyers seeking the metal for a protection of wealth.

Mainland buyers purchased 97,106 kilograms (97 metric tons), including scrap, from 51,303 kilograms in January, according to figures from the Hong Kong government yesterday. That’s the fourth highest monthly total on record, according to data compiled by Bloomberg. Net imports, after deducting flows from China into Hong Kong, were 60,947 kilograms, from 19,580 kilograms a month earlier, and the highest since December.

GoldSilver: Gold Record High in Yen - Rush to Sell Jewelery, Buy Coins and Bars

Soros’ yen “avalanche” would appear to have begun with the yen having fallen by 9.5% against gold in 5 trading days since last Thursday leading to record nominal highs in the yen at over 0.1577 million yen per ounce this morning.

The higher gold prices have led to a curious anomaly in Japan where the public has again been selling gold in cash for gold schemes, often due to being under financial pressure, while some Japanese investors and savers have diversified into gold coins and bars both of which have seen an increase in demand in recent days.

King World News: Jim Sinclair - The Coordinated Attack On The Gold Market

Today Jim Sinclair spoke with King World News about the massive and coordinated attack on the gold market.  Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this interview.   

Sinclair: “Today was a coordinated attack on gold.  We had the Goldman Sachs recommendation to short gold.  We also had the Federal Reserve Open Market Committee notes quite unusually released before the opening.  Then we had the mainstream media focus on the sale of Cyprus gold, and Mrs. Lagarde on the wire telling people everything was fine with the economy.

MineWeb: Why I like both gold and silver - Embry

GEOFF CANDY: Hello and welcome to this Mineweb.com Gold Weekly podcast and joining me on the line is John Embry – he’s the Chief Investment Strategist for Sprott Asset Management. John so far this year it’s been a pretty tough year for gold bugs in terms of what gold prices have done. How do you see the marketplace at the moment? In your latest investor report you do mention the level of market manipulation at the moment. Where do you think...?

Silver Bear Cafe: Why Are Silver Prices Falling When Demand for Coins is White-Hot?

William Patalon writes: It's one of the biggest mysteries in finance right now.

I mean, it's a real head-scratcher ...

On one hand, demand for silver coins has been off the charts. With so many investors wanting to swap currency for silver, neither the U.S. Mint nor the Royal Canadian Mint has been able to keep up with purchase requests.

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