Gold & Silver Digest: 8/1/13

Adam Taggart
By Adam Taggart on Thu, Aug 1, 2013 - 11:32pm

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.

8/1/13 10:23 PM EST US close metals price quotes from Finviz

Reuters: Gold falls as ECB rate view, strong US data boost dollar

Gold fell on Thursday, its fourth consecutive daily drop, hit by strong U.S. factory data and a dollar rally after the European Central Bank chief said euro-zone interest rates will remain low for an extended period of time.

Some traders stayed on the sidelines ahead of Friday's important U.S. nonfarm payrolls data, which could shed more light on the Federal Reserve's planned tapering of monetary stimulus. Economists expect payrolls to rise by 184,000 in July, pushing the jobless rate near its lowest level in more than four years. 

Bloomberg: Gold Drops for Sixth Day as U.S. Data Adds to Case for Tapering

Gold fell a sixth day in the longest run of losses since May, heading for the first weekly decline in a month, as U.S. economic data backed the case for less stimulus.

Spot gold lost as much as 0.5 percent to $1,303.02 an ounce, and traded at $1,305.26 at 7:23 a.m. in Singapore. The Bloomberg Dollar Index, which tracks the greenback against 10 currencies, rose the most in more than a month yesterday as claims for jobless benefits fell to a five-year low.

GoldSilver.com: Change Dead Ahead Cycles Show

Since its launch in 2009 this online resource has consistently explained the future in general terms. Simple economics (not the post-1930 “new economics”) supports what Mike Maloney wrote the book, and recorded video on—the long-term under- and overvaluations he dubbed WealthCycles.

When looking at prices, the long-term cycles Mike and the WealthCycles team follow consistently can appear to head the wrong way for years before vindication finally materializes. (gold is now well above $459.80, and U.S. housing was finally recognized as a bubble, long after September 2005 when Mike explained how he had determined it was time to take action, switching into the undervalued asset class).

Mining.com: Ben Bernanke does not control the gold price: World Gold Council

The World Gold Council has spoken: Stop holding your breath at every word out of Ben Bernanke's mouth.

In a research paper titled "Gold and the US interest rates: a reality check" the organisation warns against putting too much weight on the US Federal Reserve's hints that it may or may not wind down QE.

GoldSilverWorlds.com: Gold Investing – Are The 7 Fundamental Drivers And Negative Real Rates Still Intact?

The latest investment research paper from the World Gold Council analyzes three topics in detail. The first part contains an in-depth analysis of the true relationship between gold and US real interest rates disproving common misconceptions and exploring gold’s portfolio performance during different interest rate environments. The second part is an examination of the seven primary factors influencing gold’s performance, including currencies, inflation, interest rates. The third part contains a study exploring the benefits of having gold as an integral component of retirement portfolios, focusing on the Mexican pension fund experience. 

The content of each of the three topics is summarized below. We do not have sufficient rights to publish the paper here. The full version of the paper is available here.

Jesse's Café Américain: A Forensic Investigation of Gold

This is interesting, but apparently somewhat tentative, which is understandable given the nature of the subject.

I am not in a position to assess it quite yet, but I thought it was worth sharing to see what you all might think. I intend to follow this closely and spend more time looking into it. Today I am preoccupied with the wonders of the healthcare system.

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