Gold & Silver Digest: 7/11/13

Adam Taggart
By Adam Taggart on Fri, Jul 12, 2013 - 10:43am

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.

7/11/13 11:53 PM EST US close metals price quotes from Finviz

Reuters: Copper, gold lead broad rally on dovish Fed signals

Commodities surged across the board on Thursday, led by gains in copper and gold, as signals from the Federal Reserve that it may maintain its economic stimulus longer than previously expected revived the appetite for riskier assets.

Gold and copper prices jumped about 3 percent to their best in weeks, while oil hit multi-month highs and rubber climbed 5 percent after minutes from the Fed's June meeting showed many among the policymakers wanted more signs the U.S. job market was improving before cutting bond purchases.

Forbes: Gold Prices Could Still Correct 50%: Rogers

Investors can expect to see more volatility in gold prices in the next two years as the yellow metal forms a “complicated bottom,” said famed investor and author Jim Rogers.

Rogers was one of the keynote speakers at FreedomFest, an annual convention that looks to gather free minds for open discussions on politics and the economy. In an interview with Kitco News’ Daniela Cambone, Rogers said he doesn’t think that gold has found a bottom despite the fact that prices managed to rally after comments from Fed Chairman Ben Bernanke, who said on Wednesday that a “highly accommodative policy is needed for the foreseeable future.”

Bloomberg: Gold Decline Pares Best Week Since 2011 as Dollar Strengthens

Gold fell as a stronger dollar curbed demand for an alternative investment, narrowing the biggest weekly gain since October 2011 after Federal Reserve Chairman Ben S. Bernanke called for maintaining stimulus.

Bullion jumped 5.5 percent in the previous four days, the best run since March. On July 10, Bernanke said that the U.S. needs “highly accommodative monetary policy for the foreseeable future.” The Bloomberg Dollar Index, which tracks the greenback against 10 major trading partners, rose as much as 0.6 percent. Gold slumped 23 percent last quarter.

CEO.CA: Gold Miners Have Room to Run

It is rare for an entire sector to be as deeply oversold as the gold miners have been for such an extended period of time. However, such marked underperformance sets the stage for a powerful countertrend rally – even after today’s sizeable gains, gold miners are poised for at least another 15-25% of upside:

Bull Market Thinking: Indian Gold Dealer: Government Blames Gold For Account Deficit, Crushes Demand By 86% With Punitive Taxes

I had the chance this morning to reconnect with Vishal Vyas, head of operations at India’s top bullion dealer, Pushpak Bullions Pvt. Ltd.

It was a sobering conversation, as Vishal indicated that the Indian government has just stepped in and crushed the domestic gold market with punitive taxation and trade controls. He also indicated that Dubai is now becoming a major recipient of “gold tourism”—with tourists flooding into the United Arab Emirates in order to buy gold.

WealthCycles.com: Silver and Gold Watch Fed Inability to Tighten

In a 2011 interview, hedge fund principle, Kyle Bass spoke of "when [he] asked a senior member of the administration last week, 'how are we going to grow exports if we wont allow nominal wage deflation?'"

The response was: "We're just going to kill the dollar."

"Oh, okay, more you mean," Bass retorted.

King World News: We Are In The Early Stages Of A Massive Short Squeeze In Gold

Today one of the most respected institutional minds in the entire financial world told King World News that we are in the early stages of what will be a massive short squeeze in the gold market.  John Hathaway, of Tocqueville Asset Management L.P., is one of the great original thinkers in the business, and his fund was awarded a coveted 5-star rating.  Below is what Hathaway had to say about the developing massive short squeeze in gold.

Hathaway:  “I think the story of the day is the disconnect between physical gold and paper.  I just saw a note this morning about the most current drop in COMEX warehouse inventories.  Brinks also reported this week that their inventories were down 55%....

SilverSeek: Twelve Factoids on Silver

While we’re waiting for whatever the next big news in silver is---possibly that the insufferable pillagers behind synthetic money creation have suddenly got religion because they all had a near death experience from a rattlesnake bite and are about to give us an honest money system--- (uh, no, that won’t be the next big news), we can all take a brief break from dwelling on the perfidy of governments in the grasp of monetary predators and warmongers! A subject as vast as silver presents little difficulty in selecting a dozen random facts relating to it. I will try to present several things which each of you haven’t already seen on the subject. Where to begin? Anyplace, since random factoids are just that---miscellaneous details but hopefully interesting. To begin---

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