Gold & Silver Digest: 8/23/13

Adam Taggart
By Adam Taggart on Fri, Aug 23, 2013 - 11:42pm

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.

8/23/13 9:40 AM EST US close metals price quotes from Finviz

Reuters: Gold up 1.6 pct, near $1,400, on poor U.S. home sales

Gold rose almost 2 percent on Friday, hitting its highest price in more than two months near $1,400 an ounce, as a big drop in U.S. new home sales renewed hopes that the Federal Reserve will maintain its bond-buying economic stimulus.

For the week, gold gained 1.6 percent for its third consecutive weekly rise. It has climbed in six out of the past seven weeks since gold fell to a three-year low at $1,180 an ounce on June 28.

Forbes: METALS OUTLOOK: Strong Close Portends Higher Prices For Gold Next Week

Gold price strength in Friday’s session could spill over into next week as the market’s technical charts point to further gains.

Gold prices ended the week up. December gold futures rose Friday, settling at $1,395.8 an ounce on the Comex division of the New York Mercantile Exchange, up 1.8% on the week. September silver rose Friday, settling at $23.738 an ounce, also up 1.8% on the week.

Bloomberg: Gold Bears Take Over as Fed Members Back Taper Plan: Commodities

Gold traders are the most bearish in nine weeks after Federal Reserve policy makers backed plans to taper stimulus if the economy strengthens, eclipsing a surge in demand for physical metal that drove prices to a two-month high.

Twelve analysts surveyed by Bloomberg expect prices to fall next week, eight were bullish and two neutral. That’s the highest proportion of bears since June 21, a week before prices reached a 34-month low. Gold is heading for back-to-back monthly gains for the first time since September after speculators cut bearish bets by 27 percent from a record in July.

Yahoo! Finance: ‘Spectacular’ Gold Rally Is Coming: Schiff

Scarcity. It is arguably the single-biggest driver of rising price and when you combine it with strong demand, the results are nothing short of astonishing, or in the case of gold, spectacular.

"I think everything supports the fact that this is yet another buying opportunity in a string of buying opportunities," says Peter Schiff, CEO of Euro Pacific Capital, in the attached video. "In fact, I think this may be the best buying opportunity yet."

GoldSeek: 13 Reasons Why Gold Will Hit $5000/oz

Back in November 2003, before the Hat Trick Letter was hatched and launched, a seminal article was written about 25 reasons why Gold will rise. It was updated afterwards, around 2008 with a couple more reasons. Given the extreme situation in the last few months, the entire outlook has changed. The gnarly intractable crisis began in late 2008 when Lehman Brothers failed, Fannie Mae was nationalized, and AIG was given a nationalist prop. In the last several months, the crisis has entered a new elevated level of perma-crisis and constant tension, widely recognized as something more serious, dangerous, and risk-filled.

The key changes that mark a quantum change in the global environment for Money, Banking & Gold are many. Taken collectively, they are truly impressive and mindboggling. The new normal is deep constant crisis without resolution, nor the attempt to resolve anything. The banker power structure refused to endure liquidations. They will forced upon them, consequently. The elevated sense of urgency, greater degree of distress, and higher risk of systemic breakdown are the result of many developments. They are largely due to:

King World News: Greyerz - Here Is The Roadmap To $10,000 Gold & $500 Silver

With only 1% of world financial assets invested in gold, very few so-called investment experts have any understanding of the yellow metal.  So during the 22-month correction in the gold price, most of the 99% who don’t own gold have all been calling for the end of the bull market....

SilverSeek: Using Gold to Forecast Silver’s Final Blow-Off Rally

I have previously written about how gold can be used as a leading indicator for silver. Using this principle, there is an indication that we are at or close to the period for a 1979/1980 style rally in silver. The following is a simple concept but can make for some intense reading (a lot of concentration and possibly re-reading is required). Below is gold chart from 1968 to 1975:

I have highlighted a cup formation that formed from 1969 to the end of 1971. It took about 33 months to form the cup. If one counts 33 months (the time the cup took to form) after price went higher than the peak of the cup, then one gets to the point where the final rally to the peak started.

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