Gold & Silver Digest: 4/25/13

Adam Taggart
By Adam Taggart on Thu, Apr 25, 2013 - 7:05pm

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.

4/25/13 7:11 PM EST US close metals price quotes from Finviz

Reuters: Gold jumps 2.5 pct for biggest one-day gain since June

Gold surged 2.5 percent on Thursday, its biggest daily rise since June, as physical buyers kept scooping up the metal at prices viewed as a bargain after bullion hit a two-year low on April 15.

Silver rallied 5 percent during the session, and platinum group metals gained 2 percent.

Bullion has now retraced about half of its losses after it fell a combined $225 an ounce over two days in April.

RT: Central banks bought record amount of gold before collapse

Central banks went on the biggest spending spree in 50 years, buying the most gold since 1964 last year. Their high stockpiles of devalued metal probably makes them the biggest losers of the gold slump.

Central banks have bought the most gold since 1964 in 2012 just before the precious metal took a plunge on the stock market, and are now stuck with record losses and a stockpile of devalued gold. The World Gold Council reported central banks added 534.6 metric tons to worldwide reserves, and then the price fell.

Bloomberg: Gold Rout for Central Banks Buying Most Since 1964: Commodities

Central banks bought the most gold since 1964 last year just before the collapse in prices into a bear market underscored investors’ weakening faith in the world’s traditional store of value.

Nations from Colombia to Greece to South Africa bought gold as prices rose for an 11th year in 2011, highlighting the reversal of a three-decade-long bout of selling that diminished the world’s biggest bullion hoard by 19 percent. The World Gold Council says they added 534.6 metric tons to reserves in 2012, the most in almost a half century, and expects purchases of 450 to 550 tons this year, valued now at as much as $25.3 billion.

Forbes: Small Gold Coin, Bar Will Be Only A Temporary Shortage

Gold dealers were caught off-guard by the public’s rush to buy small coins and bars in the wake of one of the sharpest-ever drops in the price of gold in mid-April, as many dealers had only limited supplies on hand when demand surged.

That’s led to sharp rises in premiums over spot gold prices in many parts of the world, particularly in Asia and the Middle East as bullion dealers try to avoid completely running out of stock. The demand is strongest for the smallest-sized denominations, which are easier for the retail buyer to purchase.

How to get the US economy going again

In order to re-invigorate the US economy the following policy must be put in place:

The United States will only accept just as much imports from foreign countries, as foreign countries are willing to purchase from the US. (But the US will not resort to high Tariffs to restrict imports and protect local production.)

GOLD MUST RETURN TO THE MONETARY SYSTEM OF THE US.

Bloomberg: Investor Jim Rogers May Buy Gold If Prices Drop to $1,300

Jim Rogers, who predicted a commodity rally in 1999, said he may buy gold if a bear market deepens and prices fall to $1,300 an ounce or below.

Bullion for immediate delivery tumbled to $1,321.95 on April 16, the lowest since January 2011, stoking a frenzy among coin and jewelry buyers from the U.S. to India and Australia. Rogers, the chairman of Singapore-based Rogers Holdings, hasn’t bought any bullion after the slump, he said in an interview.

CNBC: True Floor for Gold? How About $1,200?

As gold surged again on Thursday, for an 11 percent rally back from bullion's April 16 low, some traders began to think that the precious metal had found a floor.

But Michael Haigh, head of Commodities Research for Société Générale, believes the bottom is still far beneath us—all the way down at $1,200 an ounce.

"The big support on the downside is in the $1,200 handle, which is really the cost of production for the highest producers, which are the South African producers," Haigh told Jackie DeAngelis on CNBC's "Futures Now."

MSN Money: 'Daily Show' takes down gold hoarders

When gold prices plummet and folks like G. Gordon Liddy and Glenn Beck start advising investors to hoard like Yosemite Sam, there's a voice that cuts through the commodity fever to the heart of the matter: Jon Stewart's.

Back on April 15, gold prices dropped to $1,321 per ounce and hit their lowest point since cresting $1,920 per ounce in September 2011.

Commodity Trade Mantra: 5 Factors That Will Push Silver to $250 an Ounce

All bull markets go through periods of consolidations and corrections. And precious metals are no exception.

There has been plenty about gold’s swan dive, but less talk about silver. And at this point there’s more potential for silver than gold…significantly more.

Because the global silver market is relatively small, Silver Prices tend to be more volatile; the pounding sell-off we witnessed in silver this past month is a testament to that fact. But volatility works both ways, so when silver rises, its price can explode higher.

ZeroHedge: Silver Is Having Its Best Day in 15 Months

In all the excitement over gold, silver has been largely ignored or forgotten. Today, it was the "poor man's gold"'s turn to stae a dramatic comeback posting its biggest single-day jump in 15 months. Having now retraced the Fibonacci 38.2% level of the record plunge, it appears $25 is th enext target - which is around 50% retracement levels.

Best day in Silver in 15 months...

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 Silver-Investor.com, 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.

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