Gold & Silver Digest: 7/16/13

Adam Taggart
By Adam Taggart on Tue, Jul 16, 2013 - 11:28pm

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.

7/16/13 11:16 PM EST US close metals price quotes from Finviz

Reuters: Gold up as stable CPI eases stimulus tapering fears

Gold rose on Tuesday as signs of stabilizing U.S. inflation pressures suggested the Federal Reserve is on track to start tapering its bond purchases later this year rather than imminently.

Bullion investors remain focused on Fed Chairman Ben Bernanke's semi-annual testimony to U.S. Congressional committees this Wednesday and Thursday, which will be watched for further signs about the timing and speed of its $85 billion monthly mortgage-backed securities buyback.

CNN Money: Gold: Time to buy now?

Gold has been a losing investment for months.

But in the last six days, the precious metal seems to have regained some of its luster, rising 5.8%. Last week, gold recorded its biggest weekly percentage gain since 2011, and it came after four weeks in a row of losses.

Some believe this could be the beginning of a new momentum.

MarketWatch: Why heavy gold shorting could lead to a rally

Data last Friday from the U.S. Commodity Futures Trading Commission showed that large speculators, which include hedge funds, recently raised their short bets on gold to a record level, analysts said. That’s a bearish signal for prices, but may have also set the foundation for a rally.

When investors take a short position, they’re essentially betting that prices are going to go down. “This is quite clearly bearish,” said Fawad Razaqzada, technical analyst at GFT Markets, but “contrarians would argue that a small adverse move against the trend could see speculators rush for the exits and thus cause prices to rally sharply.”

Forbes: KITCO NEWS INTERVIEW: 'You Have Got To Continue Buying Gold;' Doug Casey

With most world markets overpriced, famed economist Doug Casey continues to look to gold as a vehicle to save his capital.

Casey, the founder of Casey Research, 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’s Daniela Cambone, he said that despite the sharp price declines he is still buying gold.

Barron's: Citigroup Sees Gold At $1,100 By Year End

Citigroup hasn’t caught the gold bug. In a research report released today, analysts remained bearish on the precious metal despite a recent rebound, and predicted that gold prices would fall to $1,150/oz by the fourth quarter and pushthrough $1,100/oz by the end of the year. They write…

GoldSeek: Central Banks, Bullion Banks and the Physical Gold Market Conundrum

The recent decline in gold prices and the drain from physical ETFs have been interpreted by the media as signaling the end of the gold bull market. However, our analysis of the supply and demand dynamics underlying the gold market does not support this thesis.

For example, Non-Western Central Banks have been increasing their holdings of gold at a very rapid pace, going from 6,300 tonnes in Q1 2009 to more than 8,200 tonnes at the end of Q1 2013 (Figure 1a) while physical inventories are declining (Figure 1b) (or being raided, as we argued in the May 2013 Markets at a Glance)1 and physical demand from large (Figure 1c) and small (Figure 1d) scale buyers remains solid.

Time: $250,000 in Gold Coins Discovered Off Florida Coast

You know that incredible feeling when you find $10 in the pocket of an old jacket? Well, this is kind of like that, but also, kind of different. This past weekend, a team of shipwreck explorers discovered 48 gold coins reportedly worth up to $250,000, CNN reports.

Brent Brisben, who owns the shipwreck salvage company 1715 Fleet – Queens Jewels, LLC, led his crew of three on an expedition off the Florida coast to explore a 300-year-old wreck site. And, in the most literal sense, he struck gold. The trove of coins the crew found, called escudos, are part of the treasure left behind after 11 Spanish galleons sank on July 31, 1715, after a hurricane. According to CNN, they’re still in decent condition, with some markings still legible. The oldest dates to 1697, and the youngest dates to 1714.

King World News: The Price Of Silver Is Set To Soar As Inventories Collapse

With continued volatility in global markets and oil still trading near the $106 level, today John Embry told King World News the price of silver is set to soar as inventories continue to collapse.  Embry also spoke at length about the gold market.  Below is what Embry had to say in this powerful interview.

Embry:  “I am becoming far more comfortable with the gold and silver markets after what can only be construed as an extraordinarily ugly few months.  These violent takedowns in the paper market, which bore no relation to what was going on fundamentally, have discouraged so many people.

King World News: Silver Set To Advance A Remarkable 800% From Current Levels

With continued uncertainty in the gold and silver markets, today a 58-year market veteran told King World News that silver will advance roughly 800% and gold is set to soar over $3,000 from current levels.  Ron Rosen, who has been at this business for almost six decades, also spoke about the mining shares..

Eric King:  “Ron, you’ve been doing this for 58 years, where are we right now as you see it in the gold and silver bull markets?”

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