Gold & Silver Digest: 4/11/13

Adam Taggart
By Adam Taggart on Thu, Apr 11, 2013 - 7:01pm

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 rebounds from 1-week low as dollar slips

Gold rose on Thursday as a drop in the dollar triggered bargain hunting after the previous session's sharp drop on news of possible gold sale by Cyprus and uncertainty over Fed's monetary stimulus.

An improving U.S. economic outlook and rallies in the equities market, however, could pressure bullion prices in the near term, analysts said.

The metal was boosted by currency fluctuations as the dollar fell against the euro but rose to a four-year high against the yen. Gold has benefited from the Bank of Japan's pledge last week to inject around $1.4 trillion into its economy to battle deflation. 

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


Forbes: Bitcoin or Gold: Which is More Fiat-Proof?

Bitcoin sure is volatile — it peaked at $265 per Bitcoin on April 10 but as of the afternoon of April 11 it was trading down 72% at $75 on exchanges other than the temporarily shut-down Mt. Gox — that controls 80% of Bitcoin trading. Ironically, some think that banks shutting down in Cyprus last month were behind the rise in Bitcoin’s price.

Based on an April 11 interview with a Bitcoin enthusiast, I learned that some of the principles behind Bitcoin are patterned after gold — another “investment” that has soared in value along with highly-amped rhetoric about fiat currencies, an imminent spike in inflation and the collapse of our economic system.

Wall Street Journal: Cyprus News Piles Fresh Doubt on Gold’s Bull-Run

News that  Cyprus could sell 10 tons of gold from its central bank reserves to raise €400 million ($522.8 million) helped pull the rug from gold prices Wednesday, with the metal tumbling over 2% to a five-day low at $1,555 a troy ounce.

While subsequent comments by a Bank of Cyprus spokesperson have since shed doubt on the move — which was revealed in a draft bailout document seen by The Wall Street Journal — the issue raised fresh questions over whether gold can continue its bull-run.

Jesse's Café Américain: Gold Daily and Silver Weekly Charts - Metals Hold Up While Miners Trounced Again

As it turns out the Cyprus 'gold sales' touted yesterday were merely an idea floated by a politician, that had never been discussed at all with the central bank of Cyprus that controls ownership of the gold.

There are spot shortages of physical bullion on the retail level with silver of various types in particular commanding decent premiums over spot.

Silver Bear Cafe: Force Majeure Inevitable as Silver Shortage Reaches Climax

The cash metals markets, particularly in Silver are tight.  Premiums for physical over the paper price are rising and delivery times extending.  This can only end one way, “cash and carry” will ultimately “price” these markets and a force majeuer will be unavoidable as the physical does not exist system wide (never-mind on COMEX) to satisfy demand.

Gold and silver will go through a short squeeze unlike any other ever seen. History will call this “hyperinflation”.  Once started, just as in a wildfire everything will burn until there is nothing left as fuel for the fire!

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1 Comment's picture
Status: Member (Offline)
Joined: Feb 26 2012
Posts: 7
gold for food

On the day, confidence in paper-money has vanished, the owners of physical gold want food also.

Are they forced to offer their gold to the highest bid of food ? The market has returned to barter in

that situation.


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