Gold & Silver Digest: 4/24/13

Adam Taggart
By Adam Taggart on Wed, Apr 24, 2013 - 6:19pm

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.

4/24/13 6:59 PM EST US close metals price quotes from Finviz

Reuters: Gold rises on physical buying, outlook cautious

Gold prices rose on Wednesday along with crude oil, with physical buyers scooping up the precious metal after a sell-off sent bullion to a two-year low.

U.S. durable goods data posted the biggest drop in seven months. Some investors viewed the data as a sign the Federal Reserve would maintain its monetary stimulus at its policy meeting next week, boosting gold's inflation-hedge appeal.

Forbes: Dichotomy Occurring In Gold Market; Physical Demand Soars; ETF Holdings Decline

Gold continues to be a tale of two markets, with a sharp pick-up in physical demand around the world underpinning prices after a recent sell-off but continued outflows from exchange-traded funds limiting the upside.

A representative of one coin and bullion dealer suggested that the recent sharp price decline in the so-called paper market ended up being a “gift,” although an “unnerving one,” to buyers of physical metal since it let them make purchases at significantly lower prices than two weeks ago.

“It’s the biggest diversion between the paper/futures pricing and physical that I have ever witnessed,” said Jim Comiskey, senior account executive with Archer Financial Services.

ZeroHedge: US Mint Gold Sales Surge To Highest Since 2009

First it was a tripling of gold sales at the UK Royal mint, and now with just 23 days in the month of April gone, it is the US Mint's turn to reports that more gold has been sold month to date than any month since December 2009 when a record 231,500 ounces were sold. In one day, the mint sold yet another 13,000 ounces of gold, bringing the total to 196,500, or more than triple the 62,000 ounces sold in the previous month.

Will the US Mint be able to sell another 35,000 ounces in the remaining week of April, and surpass the all time monthly record from December 2009? Or will it run out of gold beforehand, and just like it did with the one-tenth ounce A.E. gold coins, will sales of all bullion denominations be halted in the comings days?

MSN Money: The gold panic of 2013

I was out of the country last week and thus did not post a column, but readers are no doubt aware that the gold market tanked about 14% between Friday, April 12, and Monday, April 15. So I will be devoting this week's column to that subject.

The first big question to consider is, Does this slide have predictive value? Does it tell us anything about the future?

I don't believe it does.

Business Insider: ART CASHIN: Here's An Alternative Theory For Last Week's Gold Market Crash

The postmortem for last week's historic gold price collapse continues.

Art Cashin, UBS Financial Services' Director of Floor Operations, passed along a theory tied to the world of structured financial products.

In short, a structured product is an investment vehicle that gives the client tailored exposure to the markets.  It usually employs derivatives like options and swaps.

The Globe and Mail: Gold’s dip part of a secular bull market: analyst

Is it a correction or a bear market? That’s the question gold investors have to be pondering in the wake of the yellow metal’s dramatic plunge last week to two-year lows.

Weighing in on the question is Tony Boeckh, the Montreal-based newsletter writer and head of Boeckh Investments Inc., who is of the view that it’s a natural correction in a long, ongoing bull market. In other words, the decline, which shaved nearly $200 (U.S.) off the price of an ounce of bullion, is just a pause that refreshes.

321Gold: Short Covering Squeeze In Precious Metals and Miners?

A week ago I wrote about a potential rebound after capitulation and panic selling in precious metals and the miners. It now appears Goldman Sachs (GS) is covering its short on gold as it rebounds above $1400.

Meanwhile, many banks have helped confuse and misdirect the investment community out of gold (GLD) and silver (SLV). This was a classic shakeout and bear trap which may start a major short covering rally.

Be ready to see increased short covering combined with record physical demand. These are the two elements to spark a price spike and breakout higher in both gold and silver.

Business Insider: Here's How Many Tons Of Rock You Have To Mine Just For An Ounce Of Gold

It's incredible how much work goes into retrieving the tiniest amounts of gold.

In its earnings announcement this morning, Barrick Gold published some mining statistics for its first quarter.

As you can see from the numbers below, some sites are more rich with gold than others.  But the bottom line is that it takes tremendous amount of rock to yield just specks of gold. In Q1, it took Barrick anywhere from 2 tons to 91 tons of rock to produce just 1 ounce of gold.

Yahoo! Finance: Forget Gold, Use Silver as Currency: David Morgan

When it comes to alternative currencies, gold is usually the tender of choice. David Morgan, publisher of The Morgan Report and creator of, disagrees. Morgan says that when it comes to precious metals as legal tender, silver is the best bet.

Silver is less expensive than gold, which makes it easier to transport and use. “In an absolute crisis, silver would be would be the monetary metal of choice. Its value per unit is a lot less than gold,” Morgan says.

The lustrous metal has been synonymous with money throughout history. “Silver has been used as money in more places and more times than gold ever has,” Morgan tells The Daily Ticker.

Plata: Mexican 'Libertad' silver coins are available

We are hearing about shortages of silver coins in the US.

Perhaps the following information may be of interest to some who wish to buy silver ounces:

Americans who live close to the Mexican border may purchase all the silver “Libertad” one-ounce coins they wish, for cash and immediate delivery, at any branch of Banco Azteca in any of the border towns on the Mexican side of the border. No need to have an account at Banco Azteca.

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Gado's picture
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tomccoy1's picture
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This looks like the biggest story of 2013

This looks like the biggest story of 2013 - IF it results in a COMEX default.  The hoodlums on the CRIMEX  likely have many tricks up their sleeves.  I have increased exposure today in light of this story.  

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