Gold & Silver Digest: 8/13/13

Adam Taggart
By Adam Taggart on Tue, Aug 13, 2013 - 8:55pm

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.

8/13/13 8:33 PM EST US close metals price quotes from Finviz

Reuters: Gold down 1 pct on U.S. retail data, India duty hike

Gold fell 1 percent on Tuesday, snapping a four-day winning streak, weighed down by better U.S. consumer spending data and after top market India hiked its import duty on gold to a record 10 percent.

Bullion came under pressure after a report by the Commerce Department showed U.S. consumer spending rose in July at its fastest pace in seven months, an encouraging sign that could strengthen the case for the Federal Reserve winding down its economic stimulus program. 

Business Insider: Hedge Funds Plowed Aggressively Into Gold Last Week

One of the big stories in markets in 2013 so far has been the epic crash in the gold market.

Gold reached its highest price of the year on January 17 – at $1686 an ounce – before falling 28.8% to a low of $1200 an ounce on June 27 (since then, it's bounced back a bit, and is now trading around $1320).

One of the obvious side effects of such a crash in the gold price was the serious trimming of positions among hedge funds (a.k.a. "large speculators"), as evidenced by the Commodity Futures Trading Commission's weekly Commitments of Traders report.

Bloomberg: Gold Tax Increase, Festival Demand May Spur India Smuggling

The third increase in import taxes on gold this year by India, the world’s biggest user, is set to boost smuggling ahead of the festival and wedding seasons as official imports halt on central bank curbs, a trade group said.

Gold premiums in India have jumped to a record after banks and traders suspended imports since the Reserve Bank of India made it mandatory on July 22 for shippers to set aside 20 percent of shipments for re-export as jewelry and the increase in tariff to 10 percent from 8 percent will further crimp supplies, said Haresh Soni, New Delhi-based chairman of the All India Gems & Jewellery Trade Federation.

TF Metals Report: JPM Continues To Hoard Gold

The gift that keeps on giving. This is so unusual that I had to write about it again.

Recall that back in July, JPM suddenly had an interest in acquiring silver through the Comex. (I say "suddenly" because, prior to July, JPM had not been nearly this active in taking Comex deliveries. See for yourself here: http://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsYTDReport.pdf [1])

For the July silver delivery month, JPM stopped 2,824 contracts into their house account. This represented 82% of the total for all of July. If you add in the 216 additional contracts they stopped into customer account, they took down 88.3% of all July silver deliveries.

King World News: Here Is The Roadmap To $3,000 Gold & $100 Silver

On the heels of some extraordinary moves in gold and silver, today top Citi analyst Tom Fitzpatrick sent King World News four fantastic gold and silver charts, and also spoke to KWN about the roadmap to $3,000 gold and $100 silver.  These outstanding charts illustrate that an extremely bullish trend for gold and silver has now begun.

Below is Fitzpatrick’s tremendous interview along with 4 key charts:

WND Money: Gold surge bodes ill for economy

The recent increase in gold prices suggest investors are increasingly worried the Federal Reserve may soon back off its current policy of quantitative easing in which it has bought billions of dollars of U.S. treasury debt and mortgage backed securities over the past few years.

In an article published Monday, Tyler Durden of ZeroHedge.com noted investors last week covered an enormous number of options contracts going short on gold futures prices, 23,518 futures contracts in total, suggesting a short-squeeze on gold is starting to solidify.

Jesse's Café Américain: Gold Daily and Silver Weekly Charts

Retail Sales had stocks on the move higher while gold saw a bit of a pullback after its run higher.

Silver was relatively strong as it continues to play 'catch up' for the year.

Tomorrow we will see the PPI numbers.

Someone presented an argument that the price of gold went down so that the wiseguys could make better buys and ride it back up.

King World News: China’s Insatiable Demand For Physical Silver To Accelerate

With gold and silver consolidating recent gains, today acclaimed money manager Stephen Leeb told King World News that China’s already insatiable demand for physical silver is now poised to accelerate.  Leeb also discussed gold, Europe, Japan, and what investors should expect in the commodities markets in the future.  Below is what Leeb had to say in this powerful interview.

Leeb:  “I’m focused on watching how gold and silver are trading right now.  Silver has started to outperform gold recently and I view this as very positive.  This suggests to me that demand for commodities is increasing.  Copper, as an example, has been a strong performer recently. 

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