Gold & Silver Digest: 6/26/13

Adam Taggart
By Adam Taggart on Wed, Jun 26, 2013 - 5:47pm

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.

6/26/13 6:18 PM EST US close metals price quotes from Finviz

Reuters: Gold slides 4 pct, near 3-year low as Wall Street rallies

Gold tumbled 4 percent on Wednesday, taking it near a three-year low as a rallying U.S. equity markets further cut into demand for bullion as a hedge against economic uncertainty.

Silver dropped 5 percent and platinum group metals also declined sharply.

Bullion tumbled again even after the U.S. government slashed its estimate for first-quarter economic growth, which made investors less worried that the Federal Reserve would move soon to end its U.S. economic stimulus.

CNBC: Gold's Decline Is Feeding on Itself, Pros Say

Gold prices, now at a three-year low, could continue to get hammered as investors reshape their views of the precious metal.

Forecasts for $1,000 an ounce gold sound much less far-fetched than they did before the metal breached $1,300 on June 20.

Jesse's Café Américain: Gold Has Had a 34% Correction

Here is a chart from Tom Fitzpatrick at King World News that I thought put this into some perspective. 

It is certainly worth reading his commentary, and I produce only his first chart with the rest to be seen at the source. With last night's selloff that correction is probably more like 35% or so but that does not alter the chart pattern.  He also shows his long term chart on silver. Gold Drop: An Opportunity?

“When are gold and silver prices going to go back up, if ever?”

This question, or variations of it, is the most common inquiry made of coin dealers today.

As of the COMEX closes Monday, the price of gold is down over 28 percent and silver almost 44 percent from October 4, 2012. Results like these have many “strong hands” owners of precious metals wondering where they went wrong in their thinking. More than a few have bailed out.

Yahoo! Finance: Bull Case For Gold Has Not Changed: Jim Rickards

Gold bugs are having a tough time defending the so-called "yellow metal" these days. The price of gold has fallen nearly 24% since the beginning of the year and more than 30% from its peak in August 2011. Last week spot gold had its worst weekly performance in nearly two years. Comex gold is down more than 3% in early trading Wednesday, it's lowest price in almost three years.

Credit Suisse, HSBC, Morgan Stanley and Goldman Sachs have all cut their forecasts for gold. Goldman slashed its year-end estimate by 9% to $1,300 an ounce. Goldman says gold could reach $1,050 an ounce by the end of 2014, 17% less than the firm's current forecast.

ZeroHedge: Gold Drops Below Its Average Cash Cost

As shown two months ago, the marginal cost of production of gold (90% percentile) in 2013 was estimated at $1300 including capex. Which means that as of a few days ago, gold is now trading well below not only the cash cost, but is rapidly approaching the marginal cash cost of $1104...

Which means that of the following mines (as we showed here) which make up the gold cost curve, one by one, starting on the right and going left, production is going to go dark, even without the recent demand by South African gold miner labor unions to have their wages doubled. Until eventually virtually no gold will be produced.

Yahoo! Finance: Gold Is Unsafe at Any Price: Dicker

Another day another beating for gold. The yellow metal fell another 3.5% overnight bringing it to prices unseen for almost three years. The SPDR Gold Trust ETF (GLD) is now down over 25% year-to-date as retail investors find themselves on the wrong side of what is suddenly looking like one of the great boom-bust cycles in precious metal history.

As for what's driving the plummet, MercBloc president Dan Dicker says it's all about Main Street coming to the sudden realization that there is no safety whatsoever in gold. "When the retail customer gets frightened, they get frightened in a hurry and they get frightened for big numbers," Dicker says in the attached clip.

Proactive Investors: As gold tanks further, Eric Sprott says yellow metal will go "significantly higher"

Gold’s recent slide, which had seemed to slow and even reverse briefly, has resumed in full force with the yellow metal dipping markedly Wednesday, dropping to its lowest price per ounce in nearly three years as a new set of reverses puts the metal on track for a record quarterly loss.

Gold contracts for August delivery, the most actively traded market, dropped from a prior settle of $1,275.10 per ounce to as hit as low as $1,223.20 in intraday trading on the Comex Wednesday, a fall of almost $52 per ounce.

The Gold Report: Ian Gordon: Who Killed the Gold Price?

The gold price may have taken a tumble, but Ian Gordon, chairman and founder of the Longwave Group in British Columbia, is watching for a recovery. As bullishness in gold reaches some of its lowest levels, Gordon, in this interview with The Gold Report, says he believes that is indicative of a turn and he discusses where he has invested his money to ride the upswing.

The Gold Report: On April 15, the gold price plunged about 9%—the biggest one-day loss ever for the yellow metal. Many gold investors got "murdered" that day. Has your personal investigation revealed any suspects?

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SPAM_whipperbubba's picture
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Joined: Jun 26 2013
Posts: 6
Gold and Silver coins

Does anyone in this group believe that buying gold and silver coins is a good investment?

br549's picture
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Joined: Feb 16 2011
Posts: 4
I view it not as an

I view it not as an investment, but as a safe asset that preserves wealth over the long term.  In that view, gold (and probably silver) are about as good as they come. 

Bankers Slave's picture
Bankers Slave
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I think you know the answer to your own

question. Did you expect a tidal wave of clients from this site by what appeared to me to be blatant advertising and hawking for buisness? 

SPAM_whipperbubba's picture
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Gold and Silver coins

We are just offering Silver Eagle coins at the price of spot silver and Gold Eagle coins at a discount for anyone that is interested at



SilverDad's picture
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Is anyone here trading futures?

SilverDad's picture
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Joined: Jul 10 2013
Posts: 9
Silver Eagle Coins

That is a great deal buying Silver Eagle coins at spot through spoteaglesdotcom.

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