Gold & Silver Digest: 7/23/13

Adam Taggart
By Adam Taggart on Tue, Jul 23, 2013 - 5:26pm

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.

7/23/13 6:05 PM EST US close metals price quotes from Finviz

MarketWatch: Gold futures log first session loss in four

Gold futures closed lower Tuesday, marking their first decline in four sessions just after the metal’s biggest one-day price gain in more than a year.

Gold for August delivery GCQ3 +0.09%  eased $1.30, or 0.1%, to settle at $1,334.70 an ounce on the Comex division of the New York Mercantile Exchange.

December gold GCZ3 +0.10% , also among the most-active contracts, shed $2.10, or 0.2%, to $1,335.20 an ounce.

ZeroHedge: Gold Pops; Stocks, Bonds, And The USD Drop

The S&P 500 - after failing once again to take out the 1,700 magic line - closed the day just 'off the lows' with its worst day in a week (down a modest 0.1%). Stocks saw their best levels in the overnight session (echoing yesterday's move) and faded from the European open bouncing modestly at the European close. But unlike yesterday, we were unable to hold the bounce and dropped back to the lows of the day. Materials popped (shorts cover) at the open and dumped all day (a pattern seen in every sector). The USD rose in the early morning as the EUR faded but once the US opened the USD slid lower all day as JPY was well bid (back to its highs of the week). Gold (and less-so silver initially) lurched back up to pre-Taper talk FOMC levels (as did the USD) - its best 4-day run in 20 months. WTI held steady around $107 (and the Brent spread ebbed and flowed). Treasuries saw modest weakness on the day (+1 to 2bps) but ended well off the day's worst levels. VIX rose 0.3 vols on the day (more than expected given the equity move). Volume (once again) was entirely abysmal.

Business Insider: ART CASHIN: Traders Are Talking About A Gold Conspiracy Theory And There's Evidence To Back It Up

No discussion about gold is complete without a good conspiracy theory.

While most theories are easily dismissed, some stay around for a while due to a confluence of circumstantial evidence surrounding them.

Wall Street veteran Art Cashin addresses one such theory in this morning's Cashin's Comments.

CNBC: Dennis Gartman: Gold is going 'several hundred dollars higher'

The selloff in gold has run its course, and the precious metal is set on an upward trajectory, Dennis Gartman the closely followed commodities trader and founder of The Gartman Letter, told CNBC.

"I had been agnostic and modestly bearish of gold until about three and a half weeks ago," Gartman told "Squawk on the Street" on Tuesday. "Then I wrote what I call 'a watershed commentary' that gold was going to go several hundred dollars higher.

JS MineSet: Comex Must Change Its Delivery Mechanism Soon

My Dear Extended Family,

The cause of today’s spectacular rise in the gold price is the reality that with Friday continues large drops in the Comex warehouse gold inventory. No cogent argument can be formed against the reality that because of the continued fall in gold inventory that within in 90 days or sooner the Comex must change its delivery mechanism.

The highest probability is that Comex will have to move to cash settlement rather than gold. Part of that settlement could be lots of 100,000 GLD that represents the ability to exchange for gold.

Merk: Gold in a (Un)Tapered World

Gold is up, even getting a positive mention in Barron's. Is it Japan's election or the tapering of the taper talk that's driving gold higher of late? Is this a bounce or the beginning of a new major uptrend in gold?

Until just a few weeks ago, pundits fell all over themselves to call an end of the gold bull market. Those that bought gold 10 years ago called the "correction" a blip; those that had bought in recent years required therapy; and those that never bought gold in the first place proudly proclaimed "I told you so." Most would agree that the selloff in gold was rather vicious. And that may well be where the explanation of the most recent move lies. We have often argued that we like gold because of its "monetary sensitivity," that is, the sensitivity to the mania of printing presses around the world. We like gold because of its comparatively simple dynamics. However, when gold moves higher twelve years in a row, no matter what our central bankers may be up to, the shiny metal can take on a life on its own.

Bull Market Thinking: Gold Trader: “I Think We Are Starting The Bubble Phase In Gold”

I had the chance to reconnect with technical gold trader Gary Savage, publisher of the Smart Money Tracker daily gold market commentary and trading service, which has outperformed most of the world’s hedge funds in 2011 and 2012.

It was a powerful conversation as Gary indicated that gold has finally confirmed a breakout, which if holds, suggests we are likely entering the next “C-wave” move or final “bubble phase”. If you believe gold’s going to go up, buy silver

In yesterday’s trade gold moved up nearly $40 an ounce and has maintained its higher level overnight.  Silver was initially slow to move, but then also managed a gain of close on $1 per ounce. 

While still far short of getting anywhere near their levels of two years ago, this does look as though it could be the start of a general recovery in precious metals prices.  The big question, of course, is: is this the beginning of an upwards re-rating, or will we see another stutter and fall back? And, if the former, how high can the momentum carry it? Silver Eagle Premiums Make Leap Higher

Gold dropped over 8 percent since the last monthly column, silver nearly 12 percent and platinum almost 8 percent. This is after a rebound of several percentage points from recent lows. Silver is especially cheap in relation to gold at over 64 to 1 and demand is nearly insatiable for silver Eagles and small silver bars/rounds. For silver Eagles, one must put up the money now and wait well over a month for delivery. For immediate delivery the premium can be double or more the historic norm. USA 90 percent silver coin is also maintaining a strong premium with special emphasis on half dollars, which is simply a matter of popularity. One should remember that five silver dimes or two silver quarters have the same silver content when refined. So don’t chase popular premiums if you are seeking a good silver investment.

King World News: $500 Silver & The Real Reason Gold Caught Fire Yesterday

Today Egon von Greyerz sent King World News a tremendous piece where he discusses the silver price eventually eclipsing a stunning $500, where gold is headed, and why the gold market caught fire yesterday.  Below is what Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, wrote in this KWN exclusive piece.

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