Gold & Silver Digest: 6/28/13

Adam Taggart
By Adam Taggart on Fri, Jun 28, 2013 - 6:56pm

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 7:20 PM EST US close metals price quotes from Finviz

Reuters: Gold posts worst quarter on record despite rally Fri

Gold surged more than 2 percent on Friday on end-of-quarter short-covering, but bullion still posted its largest quarterly loss in at least 45 years due to selling amid fears the U.S. Federal Reserve may wind down its stimulus program.

Bullion's 2.3 percent rally was particularly impressive on a day that had little macroeconomic news and no dramatic movements in other commodities and financial markets. Silver jumped 6 percent for its biggest one-day jump since January 2012.

Jesse's Café Américain: Gold Daily and Silver Weekly Charts - Oh Say Can You See

The propaganda coming out of the mainstream media is reaching a crescendo.   And the carnies on the financial networks are getting so obvious and clumsy it is almost funny, like watching a bad magic show.

Next week will be lightly traded in the States because of the Thursday national holiday.

If the specs start piling on in the metals they will likely get another 'gut check' or two in the off hours because that is often how these things go in dysfunctional markets as are common in New York and London these days.

The Ecomonic Times: China's 2013 gold consumption to top 1,000 tonnes: China National Gold

SHANGHAI: China's gold consumption is set to exceed 1,000 tonnes for the year, having reached about 800 tonnes in the first half, state-owned China National Gold said on Friday. China National Gold, the country's largest producer, said Beijing should take advantage of the current rout in prices to build reserves of the bullion to ensure economic and financial safety.

"Physical gold sales reached about 800 tonnes in the first half ... I expect full-year sales to exceed 1,000 tonnes," Sun Zhaoxue, President of China National Gold Group Corp, told reporters at the sidelines of a financial conference.

Forbes: Don't Cry For The Gold Bugs: When Gold's A Good Investment, The Economy Sags

Running a leveraged hedge fund with a long position in gold has not been a lot of fun lately.  The price of gold closed in New York at $1,225.20/oz on Wednesday.  This was down by 4.1% on the day, lower by 18.6% year-to-date, and down by more than 35% from gold’s peak on September 6, 2011.

I have never owned gold.  For years, people have asked me if gold is a good investment.  My answer has always been the same: “It had better not be.”  This is because if gold is a good investment, neither America nor ordinary Americans are likely to do very well. Rick Rule - Expert Analysis of Gold & Silver Drop and QE

321Gold: Gold is Following in Stock Market’s 2009 Footsteps

I love price pattern analogs, and just about anything else that will give me the answers ahead of time about what lies ahead. I also have a lot of smart subscribers who see things that I cannot and write to ask about it. 

Smart guy Jeff B. wrote to ask about the resemblance of the decline in gold prices since 2011 to the price pattern in the stock market during the 2007-09 bear market. I was initially dismissive, because the top to bottom patterns did not match up very well. For one thing, the bear market in stock prices from Oct. 2007 to March 2009 only lasted 17 months, while the decline in gold since its 2011 top is going on almost 2 years. And the two periods just don't look that similar when lined up on a chart, with the tops aligned.

Gordon Gekko's Blog: The Great Comex Paper Gold Dump: Online Real-Time Physical Gold Price Datasource

So, Gold is apparently “falling” again? But is it? Really?

Before we can answer that question, first we must ask - What is “Gold Price”? Even more significantly, why the hell is Gold and its price so important anyways?

So lets’ begin.

ETF Daily News: Gold-Squeeze In India Stokes Silver Demand

Jeff Nielson: There was more mind-blowing news this week in bullion markets. This is to be contrasted with the deluge of shrill, gold-bashing propaganda being cranked out by the Corporate Media at maximum decibels. As usual (these days); the news centers on India’s bullion markets.

As has been mentioned in numerous previous commentaries; Indian bullion-buyers are notoriously price-conscious. So the recent, unprecedented rape committed in the paper-gold and paper-silver markets has been nothing less than a dinner-bell “chime” for Pavlov’s Dogs.

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KennethPollinger's picture
Status: Platinum Member (Offline)
Joined: Sep 22 2010
Posts: 670
Have we hit BOTTOM?

On June 16th Mish offered us his basket of gold miners, long-term, of course.

And not as financial advice.

NEM     34.11 went down to 27.22 and THEN, finally, UP to 29.95
GG       27.74   "         "      "  22.79 "         "         "         "   "   24.73
ABX     20,25                        14.78                                        15,74
GDX    28.12                         22.22                                        24.49
GLDX  15.66                         11.52                                        12.94
HMY      3.83                           3.53                                          3.81
SBGL    3.73                            2,75                                          2.94 
SLW     23.07                         18.30                                        19.67
PAAS   12.13                         10.32                                         11.64


Since this is a long term play, Have we hit the bottom?  Let's hope so.  Thia week

should be interesting.  Again, thank to Mish for sharing his thinking.

Ken Pollinger

KennethPollinger's picture
Status: Platinum Member (Offline)
Joined: Sep 22 2010
Posts: 670
We obviously have NOT hit bottom

Practically ALL of the stocks mentioned above DECLINED once again, losing from 2% to 12%, averaging about 4-5%.  BUT REMEMBER this is a LONG play.  So, patience, fellow gold followers.


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