Gold & Silver Digest: 8/22/13

Adam Taggart
By Adam Taggart on Fri, Aug 23, 2013 - 12:11am

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.

Reuters: Gold up after Chinese PMI data, downside risk seen

Gold rose on Thursday as bullish Chinese manufacturing data boosted the nation's inflation-hedge appeal, but bullion's gains looked vulnerable as a better global economy and the U.S. Federal Reserve's planned stimulus scale-back could weigh down prices.

Renewed labor unrest in South Africa, the world's top platinum producer and a major supplier of palladium, sent platinum group metals prices sharply higher.

Bloomberg: Gold Rout Seen Bottoming by Analysts as China Buys: Commodities

The rout in gold that wiped out $56 billion of value this year is spurring consumer demand in China and India, the biggest buyers, and leading JPMorgan Chase & Co. and Bank of America Corp. to say prices are bottoming.

Sales of jewelry, coins and bars will reach as much as 1,000 metric tons in India and China in 2013, valued at a combined $87.6 billion, the World Gold Council estimates. Prices will average $1,300 an ounce in the fourth quarter, or 5.2 percent less than now, the median of 17 analyst estimates compiled by Bloomberg shows. Bank of America is the most bullish, predicting a fourth-quarter average of $1,495, and JPMorgan anticipates rising averages in every quarter through the end of next year.

Forbes: P.M. Kitco Metals Roundup: Gold Ends Slightly Up In Choppy Trading; Higher U.S. Dollar Index Limits Upside

Comex gold futures prices ended the U.S. day session slightly higher after trading both sides of unchanged Thursday. Gold and silver market bulls were impressed with their markets’ ability to hold slightly higher price levels in the face of a stronger U.S. dollar index Thursday. December gold was last up $1.80 at $1,371.90 an ounce. Spot gold was last quoted up $5.20 at $1,372.50. September Comex silver last traded up $0.077 at $23.04 an ounce.

The market place had some time to digest Wednesday afternoon’s FOMC minutes that revealed no clear consensus from FOMC members on when to start to wind down the Fed’s monthly bond-buying program, also known as quantitative easing. While the minutes were not all that different from the last minutes of the FOMC that were released several weeks ago, the “take-away” the market place garnered from this latest Fed event was that “tapering” of quantitative easing is coming, and likely sooner rather than later. The FOMC minutes reinforced ideas that the long, long road of very easy money from the world’s major central banks will reach an end in the coming months. Such was deemed bullish for the U.S. dollar, and bearish for world bond markets and periphery currencies. U.S. 10-year note yields hit a two-year high of 2.925% overnight. German and U.K. bond yields also hit multi-year highs overnight.

King World News: This Will Crush Gold Bears & Create A “Disorderly” Rise In Gold

Today one of the most highly respected fund managers in Singapore warned King World News about a developing situation which is now threatening to crush the gold bears and create a “disorderly” rise in the price of gold.  Grant Williams, who is portfolio manager of the Vulpes Precious Metals Fund, also spoke about historic events which are now taking place in the war on gold.  Below is what Williams had to say in this extraordinary interview.

Williams:  “There are some really fascinating things going on in the gold market.  We had some very interesting numbers come out of the U.K. this week.  U.K. export to Switzerland are up 10-fold.  There has been nearly a staggering 800 tons of gold that have been shipped from the U.K to Switzerland. 

TF Metals Report: All Please Consider

This brief "analysis" demands your full consideration.

Please make a summary of all the "unusual" things that are happening. Here's just a short list:

  • Gold flowing out of London to Switzerland and Hong Kong
  • Combined Chinese and Indian demand in Q2 2013 at 586 metric tonnes
  • U.S. interest rates are skyrocketing as foreigners dump U.S. treasuries
  • Steeply falling Comex inventories


Silver Bear Cafe: Black Swans and Precious Metals

Despite PROPAGANDA to the contrary, PHYSICAL Precious Metals are NOT "investments"; but instead, savings.  While 600 fiat currencies have come and gone throughout history – as well as countless "monetary substitutes" – only gold and silver have maintained their purchasing power.  The fact that the U.S. government has spent the past six months desperately defending their own "monetary substitute" – i.e., the dollar – by fraudulently naked shorting PAPER gold and silver doesn't change their intrinsic value; and if the current scenario of a collapsing mining industry doesn't PROVE that in spades, nothing will.

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