Gold & Silver Digest: 4/17/13

Adam Taggart
By Adam Taggart on Wed, Apr 17, 2013 - 7:27pm

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.

4/17/13 8:08 PM EST US close metals price quotes from Finviz

Reuters: Global shares, oil fall on growth concerns; gold rises

World equity markets and commodities fell on Wednesday as global growth concerns dented investor sentiment yet again and disappointing earnings reports weighed on Wall Street stocks.

Copper, considered a barometer for manufacturing and China-related growth, fell more than 3 percent, weighed by worries about the global economy and a 10.3 percent decline in March European car sales, a key source of metals demand.

Forbes: Gold Mining Stocks Still In Free Fall As Gold Price Stabilizes

The price of gold continued to stabilize on Wednesday, but the free fall in gold mining stocks that was sparked by the yellow metal’s recent decline went on.

Shares of Kinross Gold , a large gold producer, hit a fresh 52-week low, declining by 7.86%. Its stock is now down 49% in 2013. Novagold, a small and speculative gold mining play, saw its stock slump by more than 7%. Market Vectors Gold Miners, an ETF of large miners, was down more than 5%, and an ETF for smaller so-called junior miners also fell by more than 5%.

Reuters: Sharp drop in gold caught many funds off guard - Burbank

Hedge fund manager John Burbank, a long-time investor in gold, said the recent sharp selloff in the precious metal came as a surprise to many investors as some economic improvement and a general decline in commodity prices took their toll.

The San Francisco-based manager called last week's dramatic decline an "unexpected event" that caught some hedge funds off guard because they were betting that inflation would rise at a time global central banks are sticking to easy monetary policy.

Yahoo! Finance: After the Gold Rout: Blame Central Bank Manipulation, Says GATA’s Powell

Gold rose $25 an ounce Tuesday but only managed to recoup a small portion of a wicked two-day slide that wiped out 14% of its value. The speed and depth of gold’s decline drew comparisons to the 1987 stock market crash and prompted veteran trader Dennis Gartman to declare: “We've never… ever… ever… seen anything like what we've witnessed in the past two trading sessions.”

Nomura analyst Tyler Broda echoed those sentiments in a note to clients: "We are running out of superlatives to attach to the gold price move since last Friday."

Voice of America: India Rushes to Buy Gold as Prices Fall

Madhu Walia has been looking closely at a range of gold bangles and chains at one of New Delhi’s largest retailers for precious jewelry. “Prices have fallen, so I am very much interested to buy," said Walia. "But design I have not liked.”  

Business Insider: GOLDMAN: Brace Yourself For More ETF Selling Of Gold Holdings

Last Wednesday, before a massive sell-off in the gold market, Goldman Sachs strategists told clients to short the precious metal, targeting $1450 an ounce (at the time, gold was trading around $1580).

One of the reasons for the call was a big outflow from gold ETFs that really picked up speed in the first quarter.

Now, with gold trading at $1385, below Goldman's $1450 target, strategists at the bank are still warning that the downward move may have further to run.

RT: $560 billion wiped of Central Banks' reserves on gold slump

Gold slump has wiped $560 billion from the value of central bank reserves after its price dropped 13% in the last two days. Global investors are switching to equities in a bid to generate income.

Central banks own 19% of all gold mined (some 31,694.8 metric tons) and are among the major losers from the asset price slump, according the World Gold Council in London. Global investors have sold gold to reinvest in riskier assets such as equities, as gold is no longer seen as a sustainable hedge.

Many experts say the Western central banks have no one but themselves to blame. Many of them, led by the US Federal Reserve and the ECB contributed to falling gold prices in a bid to support their domestic currencies.

Bloomberg: CFTC Is Looking at Gold, Silver Moves, Chilton Says

Bart Chilton, a commissioner at the U.S. Commodity Futures Trading Commission, talks about commodities trades and market regulations. He speaks with Erik Schatzker and Sara Eisen on Bloomberg Television's "Market Makers." (Source: Bloomberg) Physical Demand For Gold and Silver Skyrockets – Gold Bullion Coin Sales Highest Since December 2009

We have probably all heard enough already from the mainstream nitwits who are forecasting the end of the gold bull market and further price declines. Funny thing though, most precious metal investors don't need advice from self proclaimed experts on how to invest their money. The explicitly stated goal of central banks to increase the rate of inflation through currency debasement is blatantly obvious. Investors are acting accordingly by taking advantage of the recent decline in precious metal prices.

A look at product availability and pricing at some major coin and bullion dealers shows spot shortages of gold and silver as well as large premiums as investor demand overwhelms supply.

King World News: Massive Run On Physical Gold & Silver At UBS & Scotiabank

Today a legend in the business told King World News there is a massive run on physical gold and silver at UBS in Switzerland and Scotiabank in Canada.  Keith Barron, who consults with major gold companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, spoke about this remarkable situation and what it means for investors.  Below is what Barron had to say in part I of this exclusive interview.

Eric King:  “Keith, KWN has been reporting on shortages of bullion that are already developing.  What do you make of the run on physical gold and silver that’s happening here?”

Barron:  “There is absolutely no question that this was an orchestrated takedown in gold and silver the last few days.  We already know that ABM AMRO had gold missing, I believe it was out of allocated accounts, and they wanted to give people cash instead of returning gold bars to them.

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