Gold & Silver Digest: 7/18/13

Adam Taggart
By Adam Taggart on Fri, Jul 19, 2013 - 12:01am

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.

7/18/13 8:12 PM EST US close metals price quotes from Finviz

Reuters: Gold rebounds on crude oil gains, short-covering

Gold rose on Thursday, as gains in crude oil prices and short-covering triggered a rebound rally from the previous day's losses after the Federal Reserve chief said the U.S. central bank still expects to start
scaling back its monetary stimulus later this year.

Investors focused on bullion's inflation-hedge appeal as U.S. crude oil rose to a 16-month high on encouraging U.S. job market and manufacturing data, partially recovering from gold's 1.3 percent drop on Wednesday. 

Bloomberg: Bernanke Says Gold Weaker With Disaster Insurance Demand

Gold prices have fallen this year because investors see a reduced need for “disaster insurance,” Federal Reserve Chairman Ben S. Bernanke said.

“One reason gold prices are lower is people are less concerned about extreme outcomes, particularly negative outcomes, and therefore they feel less need for whatever protection gold affords,” he said today under questioning from the Senate Banking Committee. “A lot of people hold gold as an inflation hedge but the movements of gold don’t predict inflation very well actually.”

Forbes: Bernanke Tells Congress: I Don't Really Understand Gold

While Ron Paul is no longer part of  the Congressional committees that grill Ben Bernanke twice a year, the Fed Chairman was forced to answer questions about gold on Thursday again.  Asked about the falling price of gold, which is down nearly 25% this year, Bernanke admitted he doesn’t understand the yellow metal.

“No one really understands gold prices,” Bernanke told the Senate Banking Committee, adding he doesn’t portend to either.

Bloomberg: Gold Advances for Second Day as Physical Purchases May Increase

Gold climbed for a second day on speculation demand may increase after prices slid from a three-week high, even as holdings in bullion-backed exchange-traded products extended declines.

Spot gold rose as much as 0.3 percent to $1,287.88 an ounce, and traded at $1,287.73 by 10:33 a.m. in Singapore. Prices touched $1,300.88 on July 17, the highest level since June 24. The volume for Shanghai’s benchmark spot contract advanced to 14,633 kilograms yesterday after dropping for three days. Assets in exchange-traded products shrank to 1,978.879 metric tons yesterday, the least since May 2010.

CNBC: Paulson: Rationale for owning gold is valid

Let's go down to delivering alpha. carl quintanilla is sitting down right now with john paulson and begin the discussion. you talk about how few interviews you do and more than that how few television interviews you do. have you done a television interview before? no, carl, this would be my first one. oh. and your last maybe, we don't know yet. i must admit you put together a great lineup srting with treasury secretary lew and then with preet bharara and then you had great investors from harvard, jpmorgan and great managers so thank you for including me in this conference today. we'll talk about a number of things, what you like right now. i'm interested in some of the history what forbes has called the greatest trade ever, but just to get it out up front, for someone who made so much money when others were losing so much money, there's been a lot of scrutiny of your recent performance.

MineWeb: Stronger bias for gold, silver expected in US trade Thursday

There were sales of 2.625 tonnes of gold from the SPDR gold ETF yesterday, leaving its total at 936.070, down 1.5 tonnes on the day while the Gold Trust gold ETF dropped 0.45 of a tonne to 178.24 tonnes, down 0.76 of a tonne leaving the total of the two funds at 1,114.31 tonnes down 2.26 tonnes on the day. We see this pair of sales as the cause of the fall in the gold price, after the market saw the picture more positively for gold. After Mr Bernanke’s announcement gold rose initially to $1,294, before the market became aware of these sales, which, while relatively small, dampened the gold price as the dollar weakened slightly.

Understandably it did not suit Mr. Bernanke to have such a control over markets as he had, yesterday. As we forecast in our report of yesterday, Mr Bernanke did not give a timetable for interest rate increases, nor to ‘tapering’ off QE. He went further in neutralising the impact of his statements by making it clear that the Fed would respond to the data as it guided the Fed.

SilverSeek: The Powerful Case for Silver

I am a well-known "gold bug" because of my strongly voiced opinion that gold has been one of the best assets for protecting yourself from the US dollar's prolonged decline.

Lately, the precious metals have taken a beating, and I've been called to defend gold's future prospects in the media countless times. While I am confident that gold will rebound with a vengeance before long, I think investors are potentially missing an even greater opportunity in that other monetary metal: silver.

Silver Bear Cafe: The Precious Metal Investors Greatest Secret Weapon

As the Fed turns up the heat in the central bank frying pan, the frogs (public) don't realize they are being cooked to death by inflation. I am quite amazed how loud the sizzling sound has become, but for some odd reason hardly anyone notices it.

Unfortunately, we are well past the point of no return. It's only a matter of time now before the whole "Financial Cliff" falls off the mountain side. Until then, gold and silver investors will have to put up with some of the worst analysis ever to come out of government and MSM.

You see this is quite amazing when we consider that just a few generations ago, gold and silver were the two most important monetary metals used in the economy. Gold's strategic role was shown when Roosevelt confiscated the precious metal in 1933 and revalued it to supposedly save the economy.

Note: If you're reading this and are not yet a member of Peak Prosperity's Gold & Silver Group, please consider joining it now. It's where our active community of precious metals enthusiasts have focused discussions on the developments most likely to impact gold & silver. Simply go here and click the "Join Today" button.

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