Gold & Silver Digest: 6/5/13

Adam Taggart
By Adam Taggart on Wed, Jun 5, 2013 - 7:48pm

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.

6/05/13 7:16 PM EST US close metals price quotes from Finviz

Market Watch: Gold cuts gain at close as investors show caution

Gold futures climbed Wednesday, with disappointing growth in U.S. private-sector employment and broad losses in equities providing support, but prices cut the bulk of their gains by the session’s close.

Investors showed caution ahead of the European Central Bank’s meeting on Thursday, as well as official U.S. government employment figures due Friday that were likely to offer a hint as to what the Federal Reserve will decide to do with its bond-buying program.

Forbes: Gold To Remain Range Bound As ECB Likely Holds Rates Steady

With the European Central Bank likely to hold interest rates steady at 0.50%, analysts are not expecting to see a major move in gold prices following the decision.

The ECB will officially announce monetary policy at 8:30 a.m. EDT Thursday, which will be followed by a press conference by ECB President Mario Draghi.

Bart Melek, head of commodity strategy with TD Securities, said TDS is not expecting any official move in ECB interest rates; however, he will pay close attention to Draghi’s conference as his comments could drive trading activity.

Bloomberg: Gold Investment Sales Total $6 Billion as ‘Flood Continues’

Gold sales through exchange-traded products came to $6 billion last month as investors put more money into stocks and bonds, ETFGI Ltd. said.

The outflow for gold in May pushed the total for the first five months this year to $24.2 billion, compared with gains of $3.2 billion for the same period last year, according to data provided by e-mail today from London-based ETFGI. Commodity outflows were $6.7 billion last month compared with $25 billion added to stock ETPs and $3.1 billion to fixed income.

Jesse's Café Américain: Comex Gold Registered Ounces Available Nearing All Time Low - The Risk of Rehypothecation

'Registered gold' is bullion in the Comex warehouse that is available to futures contracts standing for delivery.  There are also  a much larger number of ounces stored, at least according to reports by some organizations, that is 'eligible' to be sold,  if the owner of the bullion should decide to place it in the 'registered' category.

According to the chart below the number of registered ounces at the Comex are approaching a record low.  That in itself has some significance, but I think the point of this chart is that the registered category typically reaches these low levels at major market bottoms.

Reuters: U.S. bullion coin demand still at 'unprecedented' levels : Mint

Demand for U.S. gold and silver bullion coins is still at "unprecedented" high levels almost two months after an historic sell-off in gold released years of pent-up demand from retail investors, the head of the U.S. Mint said on Wednesday.

His comments are likely to allay concerns among some traders that frenzied buying by mom-and-pop investors since mid-April after prices plunged to two-year lows had started to fade.

GoldSeek: Explaining the gold bull market

One of the simplest and best ways to ascertain gold's long-term trend is to look at its performance relative to commodities in general. This is because a genuine gold bull market will result in gold making higher highs and higher lows relative to most other commodities. Alternatively, if gold is trending higher in nominal currency terms but not against most other commodities, then what we have is a general inflation-fueled commodity bull market (all long-term commodity bull markets are fueled by monetary inflation) with gold going along for the ride. In this latter case, the rise in the gold price is nothing more than an offset to the loss in purchasing power of the currency. So, let's review gold's performance against the Continuous Commodity Index (CCI). 

The following chart of the gold/CCI ratio makes it clear that a long-term gold bull market commenced at the beginning of 2001. The chart also makes it clear that gold's long-term bull market has contained substantial intermediate-term swings as well as multi-year periods of 'choppy' sideways movement. In other words, despite the impression created by long-term charts of the US$ gold price, gold's progress since its early-2001 major bottom has been anything but steady.

321Gold: The Gold Bull vs The Paper Tiger

That's all, folks. One look at the headlines will tell you the gold bull market is officially over: the stock market is booming, a modest recovery of the US economy is underway, and the dollar is dominating the forex. Time to sell your bullion and get back into US stocks! 

Does anyone really believe this story at this point? Haven't we been through this time and again since 2008? Remember "green shoots"?

GoldSilver.com: Business of Minting Coins Thrives

The business of minting coins is as good as gold despite the decline into bear market territory. today is the 75th anniversary of the west point mint where the american eagle coins are produced. cnbc's sharon epperson has a look at the facility and the process which i imagine is fascinating, sharon. it is absolutely fascinating and we're 30 miles north of new york city, simon and it is the largest gold coin product facility in the world. this is where all of the american eagle gold coins are made right here behind me and demand has been so strong that the u.s. mint actually had a shortage of the smallest version in april and sales resumed last week.

Daily Reckoning: The “Zero Hour” Scenario

It’s a Sunday night. October 2013. Parents are making sure the kids’ homework is done. Football fans are settling in for the night’s NFL matchup. Reigning champs, Baltimore, are about to lose. And all hell is breaking loose in the precious metals markets.

Moments before electronic trading opened at 6 p.m. EDT, Commodity Exchange Inc. — the Comex — announced it would settle a large gold contract in cash and not gold. To be blunt about it, the Comex has defaulted on its contract. Suddenly, everyone else with a gold contract — or a silver contract — started to wonder if they’d be next to get stiffed.

Yahoo! News: Fabled 19th-Century Shipwreck May Hold Gold Treasure

The wreck of a fabled 19th-century gunrunner that may also contain a treasure in gold has been identified off the coast of South Carolina.

The SS Ozama, a 216-foot-long (66 meters) iron-hulled steamship, had a colorful history, according to Discovery News. Launched in Scotland in 1881 as the Craigallion, the ship was active in the Caribbean Seas and helped build the Panama Canal.

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2 Comments

robie robinson's picture
robie robinson
Status: Diamond Member (Offline)
Joined: Aug 25 2009
Posts: 1148
Jesse is reporting more than a change in mood

What is said about Ted Butler, or rather, what Ted Butler has to say and is reported at Cafe Americain is well...http://jessescrossroadscafe.blogspot.com/

comments anyone?

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1513
JPM now net long gold

I saw that too Robie. If JPM is now net long in gold contracts, then that must mean the Comex price is going up soon.  I bought gold eagles on Apr 15 and have been saving for more. I've been amazed the price hasn't bounced back bigger and faster than it has. I'm primed to get a few more and I'm watching to get it before it shoots back up above $1,540 and beyond. I guess this news means we won't have long to wait. JPM makes money on the way up and the way down.

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