Gold & Silver Digest: 8/16/13

Adam Taggart
By Adam Taggart on Fri, Aug 16, 2013 - 10:13pm

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.

8/16/13 8:04 PM EST US close metals price quotes from Finviz

Reuters: Gold posts 5 pct weekly gain on economic uncertainty

Gold rose nearly 1 percent to a two-month high on Friday, and bullion posted its biggest weekly gain in five weeks as disappointing U.S. data dimmed hopes for a swift economic recovery.

Silver rose 1.5 percent for an eighth consecutive daily gain. The grey metal has sharply outperformed gold and was up 14 percent this week for its biggest weekly rise in almost five years.

Forbes: Survey Participants Expect Higher Gold Prices Next Week

The strong gains in gold prices this week could spill over to next week, a majority of participants in the Kitco News weekly survey said.

In the Kitco News Gold Survey, out of 36 participants, 25 responded this week. Of those 25 participants, 21 see prices up, while two see prices down and two see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Bloomberg: Gold Traders Most Bullish Since March as Paulson Cuts

Gold traders are the most bullish in five months on signs that demand for coins and jewelry increased during a plunge in prices that prompted billionaire investor John Paulson to cut his holding for the first time since 2011.

Thirteen analysts surveyed by Bloomberg expect prices to rise next week, four were bearish and five neutral, the highest proportion of bulls since March 8. Consumer buying of the metal jumped 53 percent in the second quarter from a year earlier, almost making up for the record sales of exchange-traded products backed by bullion, World Gold Council data show.

Market Watch: Gold ends higher; silver scores 14% weekly jump

Futures for gold and silver advanced Friday, with silver a standout in the metals complex as prices for the white metal scored their best weekly performance in nearly five years.

“Precious metals were well supported this week as investors bailed out of equities and [Treasurys] on higher prospects of a September stimulus taper by the [Federal Reserve],” said Mike Meyer, assistant vice president of EverBank World Markets.

“The large drop earlier in the year for both gold and silver are now presenting buying opportunities for investors sitting on cash,” he said.

Zero Hedge: JPMorgan Advises To... Buy Gold?

With the ongoing musical chairs at the COMEX (focused on JPMorgan's volatile holdings [9]), the bank's precious metals team now sees a number of reasons to be long gold. Noting the market's shrugging off of Paulson's unwind ("delivering an exclamation mark to define the end of the fall in gold stocks"), JPMorgan (ironically) suggests the questionable price action in the paper markets in light of unprecedented physical demand combined with the seasonal positives [10] (and physical supply restrictions) all points to "getting long the gold space," with gold and silver miners offering value. The question remains, given that none of these are 'new' facts, why the change of heart now (especially as JPM is also buying)? The sweat of the sun, the breath of god: Gold through the centuries

Whether you're a gold bear or gold bull, Ben Bernanke or Ron Paul, there is no questioning the unique role that gold has played in human history.

From what are now Israeli hills during the Copper Age to the Varna Necropolis in the 4th millennium, from the Egyptian pharaohs to the Spanish conquistadors, the allure of gold – its powerful affect on us – has been consistent and unmistakable.

King World News: Escalating Fear Accelerating Massive Run On Physical Gold

With some wild trading in the gold and silver markets, today John Hathaway spoke with King World News about what is happening in the war on gold and silver.  Hathaway also spoke about the mining shares and the massive leverage in the fractional reserve gold system.  Hathaway, of Tocqueville Asset Management L.P., is one of the most respected institutional minds in the world today, and his fund was awarded a coveted 5-star rating. 

Eric King:  “John, yesterday we had gold with a $50 trading range.  After plunging $20, gold then reversed and closed on the highs up nearly $30, your thoughts here.”

SilverSeek: When Silver Shortages Reach the Mainstream

Many observers have realized that the price of silver will rise dramatically at some point because the amount of paper silver is many times the amount of physical silver. When this fact is even partially acknowledged by the mainstream, silver will probably move much higher.

Furthermore, silver has historically been a real money substitute for paper fiat currency. The governments of the world cannot afford to allow silver’s price to rise on the perception that people are losing confidence in their country’s paper fiat currency.

Silver Bear Cafe: What The Silver To Gold Ratio Tells Us About Silver's Future Moves?

In our previous essay (  )  we focused on silver's relationship with the general stock market. Today, we think it would be interesting to revisit the silver-to-gold ratio.  However, before we do that,  let's check the recent price action in silver and gold.

Yesterday, silver posted biggest six-day gains in 2 years. Today, in pre-market trading, the white metal climbed up once again and reached the highest level in a month as holdings in the world's largest silver-backed exchange-traded fund, the iShares Silver Trust (SLV ETF), rose to a four-month high.

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