Gold & Silver Digest: 4/22/13

Adam Taggart
By Adam Taggart on Mon, Apr 22, 2013 - 6:23pm

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.

4/22/13 5:50 PM EST US close metals price quotes from Finviz

Forbes: Gold Ends Sharply Higher on Strong Physical Demand, Short Covering, Bargain Hunting

(Kitco News) - Comex gold futures prices ended the U.S. day session sharply higher Monday, on more bargain hunting, short covering and strong demand for physical gold seen worldwide. Bulls have also gained enough technical momentum to begin to suggest a market bottom is in place. June Comex gold last traded up $30.50 at $1,425.80 an ounce. Spot gold was last quoted up $19.80 at $1,426.75.  May Comex silver last traded up $0.430 at $23.39 an ounce.

Strong demand has surfaced for physical gold (bars, coins, jewelry) in the wake of this month’s collapse in prices. This is a major factor working to lift gold prices up from last week’s lows and beginning to suggest a market bottom is in place.

CNBC: Gold May Have Hit Bottom, For Now

Gold may have seen its low price for now, as there are signs of consumer and hedge fund interest in the precious metal, analysts say.

The metal rebounded by $100 — nearly 8 percent — since hitting a low on Tuesday of $1,321, its lowest level since January, 2011. The most active contract for June delivery, rose $25.60, or 1.8 percent to settle at $1,421.20 per troy ounce.

"I think the most important thing is there's been a marked reaction by consumers and retail investors to the drop in price. It's mostly, but not entirely, from the emerging world," said Jim Steel, HSBC chief commodities analyst. "But China and India combined have lot of buying power. It's quite fragmented. It's very much at the retail level. It's literally consumers reacting through coins and small bars. It's really a major driver in us going $100 above the low."

321Gold: The sell off in the gold and silver prices is a forebode of what is to come

Have a good look at the following two charts. I believe gold is about to bounce back sharply (following its massive manipulation) because the physical ultimately wins it always from the paper (futures). And the S&P500 is in my point of view bouncing off the unbreakable resistance of the 1600 level and probably trying for one more attack on the 1600 level. Gold “had to go down in order to rise ” on the steep decline that is in store for the equity markets. Don’t forget everything is interconnected! We will see if my thesis is correct.

GoldSilverWorlds: Where Are The Regulators After The Historic Gold & Silver Price Drop?

In his latest market update, Ted Butler points to an important question that remained underexposed after the price crash in several commodities. Gold and silver experienced their largest one-day drop since the beginning of the current bull market in the metals (i.e. 2001). Other commodities (for instance copper) saw exceptional price drops. The key question here is where the regulators are. Shouldn’t they at least investigate this case for concentrated positions, market distortion or manipulation? We were granted permission from Ted Butler to make the following excerpt public.

This week we have witnessed some of the biggest price smashes in history, brought about by deliberately predatory trading practices set in place by the CME and this sick exchange has the nerve to issue a press release trumpeting the record trading volume caused by the intentional market dislocation. One would think that the designated self regulatory organization (as well as the federal commodity regulator) would have something more instructive to say about extreme disorderly trading conditions than look at how much (dirty) money they are making. That sums up the problem here, namely self regulators and regulators that won’t regulate. 4-12 PSYOPS

On the website, under PSYOPS, the abbreviation used for “Psychological Operations” in government circles, we find:

“[….]Various techniques are used, by any set of groups, and aimed to influence a target audience's value systems, belief systems, emotions, motives, reasoning, or behavior.”

This definition of PSYOPS – “psychological operations” - applies to the events of Friday, April 12 and Monday, April 15, 2013, which were preceded by years of preparation before the knock-out blows of those days. The prolonged and unceasing war on gold took the quoted price of gold down from $1895 in early September, 2011, to $1380 as of this date; a fall of 27%.  

Casey Research: Gold Crash 2013 – Deliberately Engineered?

How can we explain gold dropping into the $1,300 level in less than a week?

Here are some of the factors:

  • George Soros cut his fund holdings in the biggest gold ETF by 55% in the fourth quarter of 2012.
  • He was not alone: the gold holdings of GLD have contracted all year, down about 12.2% at present.

Quartz: Five Wall Street geniuses who didn’t see the gold crash coming

The smoke has cleared, but the rubble and wreckage of the recent crash in gold prices is still being assessed. For years, the yellow metal has been a favorite of financial Masters of the Universe. In the aftermath of the share decline in gold prices, some of the so-called “smart money” crowd looks like they might have their Mensa membership revoked. Here’s a look at some of the highest profile financiers to find themselves on the wrong side of the gold market.

SilverSeek: Silver Market Update

Silver crashed its key support last week and plunged in sympathy with gold. On its 6-month chart below we can see the big drop that followed failure of the support, and how after plunging on Monday, it then steadied and traded in a narrowing range for the rest of the week, unlike gold which crept higher.

Although silver is more volatile and wild in its movements than gold, it has been following a parallel technical script, with support level failures and trendline breaks synchronizing with those of gold, as we will see.

SilverSeek: Who Found Silver Coin Prices Under $30?

Thanks to all of you for helping me win my bet...

The other day I was having a debate with a friend about where premiums would go in the short term -- after the big sell off.

As you know, there has been a ton of excitement about surging demand and signs of shortage.

Physical inventories have been tight for quite some time, but there has been inventory out there.

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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