Gold & Silver Digest: 5/14/13

Adam Taggart
By Adam Taggart on Tue, May 14, 2013 - 7:41pm

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.

5/14/13 7:45 PM EST US close metals price quotes from Finviz

Reuters: Gold down on economic optimism, ETF holdings steady

Gold fell for a fourth consecutive session on Tuesday, its longest losing streak in over two months, as economic optimism and another intraday record high in U.S. equities sapped bullion's safe-haven appeal.

The precious metal erased earlier gains after the S&P 500 index rallied almost 1 percent on broad gains in shares in banks and financial institutions.

Gold also extended losses after credit-rating agency Fitch's upgraded Greece's sovereign credit rating by one notch, citing the country's progress in cutting its budget deficit and the receding risk of its euro zone exit. 

Forbes: Gold Demand Skyrockets In India

Investors might not be too appreciative of gold’s 8.6% slide in April, but Indian gold lovers were.

Gold imports jumped a whopping 138% in April, adding to a worsening trade deficit of $17.8 billion, the government said.

The widening of the trade deficit, helped moreso by gold than the usual suspect — oil — is not the start of an alarming trend, Barclays Capital analysts wrote in a note to clients Monday.  India’s trade deficit remains high, and as a result of less money coming in and more money going out, financing the current account in India is a challenge.

CNBC: Gold Prices End Down on Economic Optimism

Gold prices settled lower on Tuesday, as economic optimism and another intraday record high in U.S. equities sapped bullion's safe-haven appeal.

The precious metal fell for a fourth consecutive session. It erased earlier gains after the S&P 500 index rallied about 1 percent on broad gains in shares in banks and financial institutions.

Credit-rating agency Fitch's upgrade on Greece's sovereign debt also dent gold's appeal as a hedge against economic uncertainty.

Yahoo! Finance: Gold Prices ‘Still Very Inflated’: Talking Numbers’ Brian Sullivan

Neither industrial metal nor an official currency, the gold commodity is an asset investors have come to either love or hate.

The yellow metal is trading near $1,430 an ounce, down 25% from a record high of $1,920 in September 2011.

More hedge funds are selling short the yellow metal while other investors are getting out of their long positions. Holdings in exchange-traded funds backed by gold bullion are at their lowest level since July 2011, according to Bloomberg.

Bostom Globe: Has gold rush ended? It depends on whom you ask

When the price of gold plunged $200 last month, many people thought they caught the sound of a bubble popping.

What Peter Schiff, chief executive of the brokerage Euro Pacific Precious Metals, believes he heard was a stampede of fair-weather speculators fleeing the precious metal.

Schiff and other champions of gold weren’t shaken by the plunge. To them, it was just a short breather in preparation for another long climb.

None of the reasons they give for buying gold have changed: Gold remains a refuge from disaster, they say, arguing that a steep drop in the dollar and a spike in the price of consumer goods are a threat.

MarketWatch: Gold logs lowest settlement in almost three weeks

SAN FRANCISCO (MarketWatch) — Gold futures marked their fourth straight session of declines on Tuesday, as strength in the dollar and a rally in U.S. equities lured investors away and pushed prices for the precious metal to their lowest close in nearly three weeks.

Strong physical demand from Asia, however, remains a key support, analysts said.

Gold for June delivery GCM3 +0.31%  fell $9.80, or 0.7%, to settle at $1,424.50 an ounce on the Comex division of the New York Mercantile Exchange. Prices, which tallied a four session loss of more than 3%, settled at their lowest level since April 24.

The Financial Times: Gold rush spooks economy as trade deficit surges to $17.8 bn

India's gold rush spooked the economy again as frantic purchases in April widened the trade deficit to a disturbing $17.8 billion, but people queued up to buy even more coins and ornaments on an auspicious gold-buying festival on Monday, setting the stage for an even bigger gap between imports and exports. The sharp fall in gold prices last month unleashed pent-up demand in India, lifting the import bill for bullion to $7.5 billion in April, up from a relatively modest $3.5 billion in the same month a year ago.

Accelerating gold imports contribute to the current account deficit, which analysts say is one of the biggest concerns for the Indian economy. The government has tried to curb India's appetite for gold with import duties while the central bank has imposed restrictions on the import of the metal, but buyers don't care. They are actually rushing to buy before the authorities clamp down on gold.

Silver Bear Cafe: Indisputable Proof Paper Gold Markets are Massively Manipulated

What would you think if someone told you the following?

"Three times this week, I am going to tell you the low price of gold with near perfect accuracy, and one of those three times, I am going to tell you events that will precede the low and the exact time that gold prices will crash."

You would likely conclude that either:

(1) I am somehow directly involved in setting the price of gold in paper derivative markets, or

(2) that since nearly perfectly predicting gold price movements three times in one week in a free market is impossible, that such an accomplishment would serve as indisputable proof that gold markets are rigged and manipulated by bankers, as none of my predicted price targets depended upon technical chart analysis of any kind.

SilverSeek: A Different View of Silver

The SILVER MARKET often gets a bum rap. The reason is that often its gyrations are much greater than those of the gold market.

What causes this? There are theories that bankers and investment companies are conspiring to try to manipulate the market. However, buying or selling alone is not a conspiracy. It is called a speculation. Where conspiracy begins is poorly defined in law, especially where it's one through market trading. But one factor is true: market perception can be changed by those with big wallets.

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.

1 Comment

davefairtex's picture
Status: Diamond Member (Offline)
Joined: Sep 3 2008
Posts: 5683
anyone tracking premiums?

My informal survey (one LA coin shop that lists prices on the internet) shows that 100 ounce bars are back, and are selling for $1.75 over spot.

Silver eagles $4.00 over spot, Maple Leafs $3.50 over spot.

It would appear that premiums are slowly shrinking.

It also would appear that the gold/silver ratio continues to climb, now at 61.60, which is not a good sign for PM in general.

Please don't shoot the messenger!


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