Gold & Silver Digest: 6/3/13

Adam Taggart
By Adam Taggart on Mon, Jun 3, 2013 - 11:41pm

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.

6/04/13 12:29 AM EST US close metals price quotes from Finviz

Reuters: Gold up 2 percent on dollar slide, weak U.S. data

Gold jumped nearly 2 percent on Monday, hitting its highest in more than two weeks, boosted by a tumbling dollar and disappointing U.S. manufacturing data.

The precious metal climbed and U.S. equities fell after data showed the U.S. manufacturing sector contracted in May for the first time in six months. 

Gold and other dollar-denominated commodities gained across the board after the U.S. dollar index dropped around 1 percent against six major currencies.

Business Insider: DOUG KASS: This Is A Great Time To Buy Gold

Gold futures are well off their 52-week high of $1,804 per ounce. They are currently at about $1,394.50 per ounce.

Hedge fund manager Doug Kass thinks it's a great time to buy gold. 

"There is probably no better time to consider diversifying one's portfolio into a depressed asset class (e.g., gold) than when the crowd is optimistic about a vigorous and self-sustaining global economic recovery and when the world's stock markets are at record high prices," writes Kass in a  Real Money column (via The Street). The Role of GLD and SLV

In August 2011 I wrote to the Financial Services Authority to seek confirmation that the London-based custodians of SPDR Gold Trust (GLD) and iShares Silver Trust (SLV) were being regulated as custodians, despite the fact that physical bullion is not a regulated investment. After some chasing on my part I finally got a response, kicking my letter firmly into touch. The FSA accepted that the custodians (HSBC Bank USA NA for GLD and JP Morgan Chase Bank NA London Branch for SLV) were regulated, but appeared to be unwilling to do anything about it other than to pass my letter on to “the supervisors of the relevant firms”.

Sprott: Redemptions in the GLD are, oddly enough, Bullish for Gold

Recent outflows from physical gold exchange traded products (we use the SPDR Gold Shares, GLD) have been interpreted by the financial press as a sign of weakness in the demand for gold as an investment vehicle.1

However, a closer look at the evidence suggests otherwise: the largest outflows in the history of the GLD (see Figure 1) started well before the large drop in the price of gold we observed on April 15th, 2013 (-9%, which represents a 1 in 11 years event)2. In fact, the net redemption of shares of GLD started as early as the second week of January 2013 (on a 3-month cumulative rolling basis). In this note, we will explore the theory that it was the shortage of physical gold and the ensuing arbitrage opportunity that drove market participants to redeem shares of GLD.

FoxNews: Fight between rival unions shutters big Mexican silver-gold mine; strikes close 2 other mines

Two big silver and gold mines and a copper mine owned by Carlos Slim, one of the world's richest men, have been closed by labor conflicts, the company said Monday.

The Minera Frisco company said its El Coronel mine in the north-central state of Zacatecas has been shuttered by workers during a conflict between two rival unions, one of which holds the contract at the mine and another seeking to organize workers there.

CNBC: Gold Rout Prompts Shift to Diamond Miners

Resource funds have had a tough run so far this year as panic selling hit the gold market in April and mining stocks tanked, but diamond miners have managed to emerge relatively unscathed, with many stocks surging this year, prompting investors to increase their exposure to the sector.

Neil Gregson, manager of JPMorgan's Natural Resource Fund said diamond mining stocks had managed to escape the "whipsaw" of gold equities and some exciting things were happening in the sector.

The Market Oracle: Gold Long Wait is Almost Over

“The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money.” …Alexis de Tocqueville.

The price of gold reached an all-time high of $1925 on September 6th 2011. Since then the price dropped to a low point of $1321 on April 16th 2013. A correction of 45% during a bull market is not unusual; as painful as it is for gold bulls. In the process gold has reached a support line that has held up since the current bull market began. Time is almost up! In the words of W. D. Gann: “When time is up, price will reverse.”

Zero Hedge: Peak Gold

We are rapidly approaching the end of cheap resources. The wealth of most Americans could get wiped out during the next decade due to commodity inflation. Focusing on your real purchasing power is critical. As this brief documentary discusses, what is it that makes gold so special? Merely a "tradition" as Bernanke would have us believe, or sound 'money'? Dave Morgan - The Silver Stackers Will Have Their Day of Reckoning!

On This Week In Money David Morgan discusses what's next for Silver.

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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