Gold & Silver Digest: 6/21/13

Adam Taggart
By Adam Taggart on Fri, Jun 21, 2013 - 4:33pm

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.

6/21/13 5:08 PM EST US close metals price quotes from Finviz

GoldSeek: Gold Seeker Weekly Wrap-Up: Gold and Silver Fall About 7% and 9% on the Week

Gold fell to as low as $1269.10 in early Asian trade before it rebounded to $1302.37 and then chopped back lower in London, but it then stabilized about 1% higher in New York and ended with a gain of 1.21%.  Silver slipped to $19.37 in Asia, but it then rose to as high as $20.121 in New York and ended with a gain of 2.19%.

Euro gold rose to about €986, platinum rose $12 to $1370.50, and copper climbed 6 cents to about $3.10.

Gold and silver equities fell over 2% by late morning, but they then climbed back higher in early afternoon trade and ended with over 1% gains.

Hard Assets Investor: Jim Rogers: I Bought More Gold Today; Bull Market Far From Over

Investment guru gives his latest views on commodities, including gold and oil.

When Jim Rogers talks, investors listen. Rogers may be the world’s best-known commodity investor, with his Rogers International Commodity Index and best-selling books, including “Hot Commodities.” HAI Managing Editor Sumit Roy spoke this week with Rogers from his home in Singapore about commodities, including whether he’s ready to buy gold after the recent plunge in prices.

321Gold: Gold Loses A Battle, But War Continues

Gold Cycle Chart

  • I have stated here several times that the (trap) door is open for a move to $1260 or lower. If there is a move to that level, the “smart money” COT indicator should be quite bullish.
  • Small speculator (“dumb money”) comex long positions are near 20 year lows.

Casey Research: What Are Reasonable Gold Market Expectations?

The historical record shows that those who get washed out during big corrections miss the greatest buying opportunities of a bull market.

With that as context, what can we expect from gold moving forward? Let's start with the short term…

Zero Hedge: Visualizing Gold And Stock Returns

With both stocks and precious metals taking it on the chin in the last two days, we thought this visualization of real rolling returns of stocks and gold would be of interest...

Daily Reckoning: Prelude to Currency Wars

On August 15, 1971, a quiet Sunday evening, President Richard Nixon took to the airwaves, preempting the most popular television show in America, to announce his New Economic Policy. The government was imposing national price controls and a steep surtax on foreign imports and banning the conversion of dollars into gold. The country was in the midst of a crisis, the result of an ongoing currency war that had destroyed faith in the U.S. dollar, and the president had determined that extreme measures were necessary.

Today we are engaged in a new currency war, and another crisis of confidence in the dollar is on its way. This time the consequences will be far worse than those confronting Nixon. The growth in globalization, derivatives and leverage over the past forty years have made financial panic and contagion all but impossible to contain.

GoldSeek: Bullish Gold-Stock Volume

Even before this week’s latest Fed-tapering scare, gold stocks remained firmly entrenched as the most-hated sector in all the markets.  They are as deeply out of favor as they’ve been in their entire dozen-year secular bull, hyper-oversold and radically undervalued.  Given such epic antipathy, I figured they were also suffering from low trading volume.  Turns out they are, with some surprises, which is a bullish omen.

It’s been several years since I’ve studied gold-stock volume in any depth, and I’ve been growing more curious about it as this year’s massive gold-stock rout wore on.  Trading volume is pretty ambiguous as far as technical indicators go.  While most indicators clearly flag excessive greed or fear, high volume can show both.  Volume tends to surge when traders get excited, when either kind of emotion is running high.

Silver Bear Cafe: Own Physical Gold as Governments Destroy Wealth and Squander Tax Payers' Money

Gold prices have failed to hold above the key resistance level of $1400 an ounce even though the fundamental driving forces behind the precious metal have not changed and as the global monetary system remains as precarious as ever. 

While some investors may think they are getting wealthier because they see the value of their equity portfolio increase, others are seeing the value of their hard earned cash gradually erode due to the low interest rate environment. And, while mainstream media particularly in the USA claim that the economy is recovering due to the recent stock market rally, this rise in prices is due to an economic stimulus programme engineered by the US Federal Reserve and has nothing to do with a vibrant economy.

Silver Bear Cafe: Silver Price to Rise as Top Miner's Production Evaporates

One of the most insidious problems taking place in the gold and silver mining industry is the decline in falling yields. 

Not many realize, when yields decline, production evaporates and disappears.

To offset the decline in metal yields, the mining companies have to add new mines and or increase the amount of processed ore.

SilverSeek: Reasons to Buy Gold and Silver Bullion

For a long time now I’ve been telling friends to buy gold and especially silver bullion. I haven’t really had time to explain why but I think now I should make an effort. This is a massive story but I will try to be brief. I believe that gold and silver are seriously undervalued. I also believe that there is going to be a crisis in confidence in the money we currently use which will cause a sudden and serious loss of value (very high inflation). Ownership of gold and silver are an insurance against this happening. Once it does happen it will be too late to take out that insurance policy.

Precious Metals to Paper Money

Gold and silver have little relevance to most of us today. Apart from the occasional jewelry purchase very few of us have much to do with them in a day to day sense. This was not always the case. For much of human history they were used as everyday money. When Judas betrayed Jesus he did so for 40 pieces of silver. When the US Constitution was written, the dollar was defined as a set weight of silver.

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