Gold & Silver Digest: 6/27/13

Adam Taggart
By Adam Taggart on Fri, Jun 28, 2013 - 12:55am

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.

6/28/13 1:35 AM EST US close metals price quotes from Finviz

Reuters: Gold sinks below $1,200 for first time in nearly 3 years

Gold sank 2 percent on Thursday, as month-end book squaring and relentless liquidation by institutional investors sent bullion prices below $1,200 per ounce for the first time in nearly three years.

Gold reversed early gains in New York trade, and the slide accelerated with stop-loss orders triggered after the price fell below $1,225 an ounce.

Washington Post: Look out below! The price of gold is plummeting.

t’s been a rough couple of month for those who adopt the Ron Paul/Glenn Beck school of portfolio management. Gold, the prized investment of those who wish to guard against a looming hyperinflation or breakdown in society, has been falling sharply, and on Thursday afternoon briefly passed below the $1,200 an ounce level for the first time since 2010. The reasons why are actually somewhat promising for the economic outlook.

From a recent high of $1,790 on Oct. 4, the price of gold has fallen by about 33 percent, and at 3:15 p.m. Thursday the price was $1,203.

Jesse's Café Américain: Stand and Deliver: How Germany Disrupted the World's Gold Market

Someone asked, 'why would there be a desire to do a stealth confiscation of gold from the public holdings in ETFs and private stores through price manipulation?' Who could have been assigned the task of prying bullion out of the hands of the people, and for what conceivable reason? It appears to be happening, but why?

There are any number of possible reasons. Concerns that an innovative new round of QE and money creation might create a run on the gold price is one possibility. There should be little doubt in those who look into the evidence that central bankers are quite sensitive to gold and silver as alternative currencies and reflections of their own policy initiatives.

Bloomberg: Gold Traders Split as Rout Resumes in Bear Market: Commodities

Gold traders are divided on the outlook for prices, with some judging that the slump to a 34-month low following the Federal Reserve’s comments on tapering stimulus will spur demand for coins and jewelry.

Fifteen analysts surveyed by Bloomberg expect prices to rise next week and 14 were bearish. Three were neutral. Gold fell 13 percent in the past two weeks, reaching $1,180.50 an ounce today, the lowest since August 2010. The metal is poised for the biggest quarterly drop in at least nine decades after investors cut bullion holdings to a three-year low.

Yahoo! Finance: Gartman: Three Things Gold Investors Need to Do Now

“Gold is still probably going to head lower,” says Gartman. “So, you’ve got to do something.”

Here are Gartman’s three tips on what gold investors should next:

Acting Man: The Erste Bank/Incrementum Gold Report

We are happy to once again present the annual gold report by Ronald-Peter Stoeferle and his co-author Mark Valek. Although Ronald is no longer with Erste Group in Vienna (he is now a managing partner at Incrementum AG in Liechtenstein), he still writes the 'In Gold We Trust' report for Erste Group in his role as an external advisor. The version of the report that we are offering for download here is the extended Incrementum version, which inter alia contains a section on gold stocks and a number of elaborations on topics which are not as extensively discussed in the shorter version. 

In spite of this year's decline in the gold price, we still trust in gold, one might say. There are a few valid reasons for the recent bearish trend, some of which Ronald dissects; nevertheless, the bet remains that it is very likely undergoing a large degree correction in a secular bull market. Jim Sinclair - Fiat Currency is for spending, Gold is for Saving

Sinclair discusses the Coming Crash of the Western Banking Civilization, Global Economy, U.S. Dollar, Bail in's, $50,000.00 Gold if Comex Fails and more.... Two Gold Bulls Explain the Bottom Is Near, Heading to $7,000

Emotion is overshadowing fundamentals in gold right now and several factors point to a long-term bullish move in the metal, two gold bulls told "Squawk on the Street" Thursday.

Gold Silver Worlds: In Gold We Trust 2013 – Long Term Gold Price Target $2,230

The new edition of the “In GOLD We TRUST” report is out. In his 7th report precious metals analyst Ronald Stoeferle takes an holistic view on the latest developments in the gold market. Mr. Stoeferle has set up his own gold fund recently at Incrementum Liechtenstein AG.

This edition of the report is characterized by a focus on the monetary aspect(s) of gold, a subject which remains highly underexposed in almost every report of major financial institutions. Because of the unprecedented global monetary policy experiments the need for monetary insurance has never been greater. The consensus could be convinced that the gold bull market has ended but In GOLD we Trust 2013 points to the fundamental arguments why the gold bull market remains intact.

Silver Bear Cafe: Silver At Less Than 19 Dollars An Ounce? Are You Kidding Me???

The day that silver traders have been waiting for has arrived.  On Wednesday, the price of silver dropped another 5 percent.  As I write this, it is sitting at $18.55 an ounce.  On Wednesday it hit a low that had not been seen in three years.  Overall, the price of silver has declined by 34 percent this quarter.  That is the largest quarterly move in the price of silver in more than 30 years.  So what does all of this mean?  It means that we are looking at a historic buying opportunity for those that are interested in silver.  Yes, gold is undervalued right now as well, but it is absolutely ridiculous how low the price of silver is.  At the moment, the price of gold is about 66 times higher than the price of silver is.  But they come out of the ground at about a 9 to 1 ratio, and unlike gold, silver is used up in thousands of common consumer products.  Those that want to invest in silver should be shouting for joy that prices have fallen this low.  If you have been waiting and waiting and waiting to "load the boat", your moment has arrived.

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