Gold & Silver Digest: 8/14/13

Adam Taggart
By Adam Taggart on Wed, Aug 14, 2013 - 10:50pm

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.

8/14/13 9:03 PM EST US close metals price quotes from Finviz

Reuters: Gold rises 1 pct on commodities rally; silver up too

Gold rose around 1 percent on Wednesday as broad gains in the commodities complex and signs of simmering inflation lifted bullion after the previous day's drop.

Silver jumped nearly 2 percent, outperforming gold and notching its largest six-day rally in nearly two years, as economic hopes boosted its industrial demand, analysts said. 

Bloomberg: Gold Bull Paulson Cuts SPDR Stake by Half in Bear Market

Billionaire hedge fund manager John Paulson, who told investors as recently as last month that they should own gold, cut his holdings in the metal by more than half as prices plunged into a bear market.

Paulson & Co., the largest investor in the SPDR Gold Trust, the biggest exchange-traded product for the metal, pared its stake to 10.2 million shares in the three months ended June 30 from 21.8 million at the end of the first quarter, according to a government filing yesterday. The New York-based firm, which manages $18 billion, cut its ownership for the first time since 2011 “due to a reduced need for hedging,” according to an e-mailed response to questions. It also sold options to buy shares in Barrick Gold Corp. in the future, filings show.

MarketWatch: Gold closes higher to recoup much of recent loss

Gold futures rose on Wednesday to recoup most of the sharp decline they saw in the previous session.

Silver prices extended their winning streak to a fifth-consecutive session to finish at their highest level since mid-June on the back of strong physical demand and expectations for more of the same amid signs of an improving global economy.

Gold closes higher to recoup much of recent loss

Reuters: Hedge funds cut gold holdings more in second quarter

Hedge funds further abandoned gold in the second quarter of this year, lightening holdings of the world's biggest gold exchange-traded fund SPDR Gold Trust as spot prices plummeted.

JP Morgan Chase & Co cut its investment in the SPDR Gold Trust fund by 1.6 million shares to 8.6 million, valued at $1.1 billion, as of 30 June, compared with three months earlier, data on the Nasdaq website shows.

MineWeb: CFTC war on precious metals schemes snares supposed scam

The U.S. Commodity Futures Trading Commission is keeping up the pressure on Southern Florida companies reportedly involved in multi-million fraudulent precious metals schemes—this time accusing the Worth Group and a brother and sister team of fraud in a scheme involving $73 million in precious metals sales.

The complaint filed Tuesday in the U.S. District Court for the Southern District of Florida claims that, from July 16, 2011, through the present, Worth Group has purported to sell physical gold, silver, platinum and palladium on a fully-paid basis as well as on a finances basis, to hundreds of retail customers throughout the United States.

The Daily Gold: Gold Stocks are Leaving the Station

All aboard and back up the truck. The recovery train is soon to leave the station for higher prices!

Obviously, the ideal time for that would have been at the exact bottom. Hours before that bottom we penned an article titled, Epic Opportunity in Gold Stocks. A number of factors came together making a near bulletproof case for a major bottom. Bulletproof is a dangerous word to use and especially for someone (cough, me!) who had anticipated a huge rebound as early as the spring. Last week we used that term again because the gold stocks were only correcting and consolidating which is a typical of a post-bottom rebound. The precious metals complex looked weak to start last week but reversed course to form not only a bullish weekly reversal but the first higher low since the major bottom. Our technical work and historical analysis strongly argue that it’s only a matter of time before this sector begins the next move higher. Silver reaches two-month high, outperforms gold

All that shimmers is not gold but for silver that's probably a good thing: The precious metal hit a two-month spot price high of $21.84 per ounce on Wednesday – a 1.9% increase.

Silver for September delivery was up nearly 2%.

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