Gold & Silver Digest: 6/18/13

Adam Taggart
By Adam Taggart on Tue, Jun 18, 2013 - 6:26pm

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.

6/18/13 7:20 PM EST US close metals price quotes from Finviz

Reuters: Gold down more than 1 pct on Fed jitters, equities gain

Gold fell more than 1 percent on Tuesday as U.S. equities rallied and bullion buyers took to the sidelines before the conclusion of a two-day Federal Reserve policy meeting they hope will give greater clarity on the outlook for U.S. monetary policy.

The metal fell for a second consecutive day - the first time in nearly a month - as its safe-haven appeal was reduced by the rise of U.S. equities on hopes that the Fed will maintain its current level of stimulus at the end of its Federal Open Market Committee meeting on Wednesday. 

CNBC: Ron Paul: Gold Could Go to 'Infinity'

There are gold bears, gold bulls, and gold bugs. And then there's Ron Paul.

The former congressman and presidential candidate is known for favoring gold, and he still believes it will go higher. How much higher?

"Eventually, if we're not carefully, it will go to infinity, because the dollar will collapse totally," Paul said on's "Futures Now."

MarketWatch: Gold slumps on fears Fed will signal taper

NEW YORK (MarketWatch) — Gold futures ended lower Tuesday after dropping to their lowest level in nearly four weeks as traders focused on the possibility the U.S. Federal Reserve will signal that it’s prepared to slow the flow of monetary stimulus.

Gold for August delivery GCQ3 +0.10%  dropped $16.20, or 1.2%, to close at $1,366.90 an ounce in Nymex floor trading as Fed officials began a two-day monetary-policy meeting. During the session, gold traded as low as $1,360.20, the lowest level for a most-active futures contract since May 23, according to FactSet.

Minyanville: Jim Rogers: The Gold Correction Is Not Over

Legendary commodity investor Jim Rogers has never been shy about vocalizing his opinions about the investing world. In particular, Rogers has an affinity for commodities like ags and precious metals. Gold has been one of the most talked about hard assets of the last two years, as the metal soared to all-time highs, only to watch its price take a tumble in the months that followed. All along the way, Rogers had been calling for a correction for gold, and it is a sentiment that he still holds today.

iStockAnalyst: Where Is Gold Headed Next: A 3-T Look

While Wall Street has been uncertain about what to do with stocks since talk of QE tapering emerged, traders have been far more decisive with Gold. Atomic Number 79 is down 18% in 2013 with half of the losses coming in the last couple of months.

Many metals investors are probably wondering if now is the time to buy on weakness or bale out before the next hailstorm of selling hits, especially since Au has gone sideways of late.

With the Federal Reserve in day one of a two day meeting and a policy update coming on Wednesday afternoon, Gold is sure to react to the FOMC release and Ben Bernanke's presser.

321Gold: Gold Bull Mkt vs Gold Bull Era

  1. I’m getting a lot of emails to do more macro analysis of the gold market, and the time is ripe to do so.
  2. We need to continue to push for long-term capital inflows and therefore the FDI policy has to undergo a revamp…. We need to move in this direction quickly and it needs to be a paradigm shift in how we look at FDI.” – Arvind Mayaram, Economic Affairs Secretary of India, June 17, 2013, Bloomberg News.
  3. FDI refers to “foreign direct investment in India”. The Indian government charges an 8% duty on gold that is imported into the country. There is also a 4% sales tax.

321Gold: Gold COT Data Show Bottoming Condition

Commercial traders of gold futures are showing one of the most bullish conditions in years. They are usually presumed to be the "smart money", and so when commercial traders move to a lopsided net position as a group, it usually means that prices are going to be moving in their chosen direction.

The CFTC releases its Commitment of Traders (COT) Report on Fridays, with data reflecting positions held as of the preceding Tuesday. Licensed futures brokers are required to submit the positions held by their customers. For larger traders, the CFTC wants to know by name who is holding what, and those traders are broken down into two categories: commercial traders are the really big ones, and get classified as such if they are commercially "...engaged in business activities hedged by the use of the futures or option markets." Non-commercial traders generally hold smaller positions but are still above the threshold for individual reporting. Those whose positions sizes are so small as to not be worth reporting individually are categorized as "non-reportable". Read more on these definitions at the CFTC's web site.

Jesse's Café Américain: Harvey Organ Comments on the Gold Inventory at the COMEX

Time to send a distress flare to their friends and cohorts at the central banks?

Hey Rocky. Watch me pull a rabbit out of a hat.

From Harvey Organ this evening:

GoldSilverWorlds: US Treasury Gold – Is It There?

Does anyone really think that gold is unencumbered, unleased, and actually physically there?  Yes, I know…

a)   They would not lie to us, right?

b)   The official numbers must be true, right?

c)   They seem like trustworthy people, right?

d)   Why wouldn’t it be there?

Glad you asked that question.  Why wouldn’t it be there?  Gold is a bit like an “anti-dollar.”  The Federal Reserve creates new dollars by the trillions – dollars are their product.  Gold has been real money for 5,000 years world-wide.  Federal Reserve notes have been passed off as money for a few decades, and in that time they have lost most of their value as measured against commodities such as wheat, gasoline, and cigarettes.

Silver Bear Cafe: Silver's monetary return

The quadrillion pound gorilla of silver’s return as a monetary currency is now lurking patiently in the room as the bond market seems to be recovering somewhat.

Nevertheless, perhaps central banks are simply testing the resilience of the bond market by tempting the bond vigilantes out of hiding?  Still, one has to remember that there is no strong willed Volker around at the Fed with the guts to raise interest rates to fight inflationary pressures.

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