Gold & Silver Digest: 8/29/13

By jasonw on Thu, Aug 29, 2013 - 9:20pm

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.

8/29/13 9:09 PM EST US close metals price quotes from Finviz

Reuters: Gold falls after 5-day rise as Syria attack fears ease

Gold fell on Thursday, snapping a five-day rally as a U.S.-led military strike on Syria appeared not to be imminent and investors turned their attention to strong U.S. economic growth and the Federal Reserve's plans to rein in its stimulus program.

President Barack Obama told Americans on Thursday that a military strike against Syria was in their interest following a gas attack against Syrian civilians last week, and Britain said armed action would be legal. But intervention appeared likely to be delayed until U.N. investigators report back. 

Bloomberg: Gold Trade Most Bullish Since March on Syria Crisis: Commodities

Gold traders are the most bullish in five months as mounting concern about military action in Syria drove prices into bull market territory.

Twenty-three analysts surveyed by Bloomberg expect prices to rise next week, six were bearish and five neutral, the highest proportion of bulls since March 8. Hedge funds and other speculators have the biggest bet on higher prices in six months and holdings of metal in exchange-traded products expanded in the past two weeks, data compiled by Bloomberg show.

Business Insider: India Considers Radical Plan To Buy Gold From Ordinary Citizens

India is considering a radical plan to direct commercial banks to buy gold from ordinary citizens and divert it to precious metal refiners in an attempt to curb imports and take some heat off the plunging currency.

A pilot project will be launched soon, a source familiar with the Reserve Bank of India (RBI) plans told Reuters.India has the world's third-largest current account deficit, which is approaching nearly $90 billion, driven in a large part by appetite for gold imports in the world's biggest consumer of the metal.

Bloomberg: Is Gold Headed for a Bull Market?

Video: In today's Triple Threat, Bloomberg's Julie Hyman, HSBC's James Steel and Stutland Equities' Joe Tigay discuss the outlook for gold prices with Trish Regan on Bloomberg Television's "Street Smart."

Forbes: Emerging Market Rout May Hit Gold Purchases

Emerging markets are under significant pressure as investors flee the currency, equity and bond markets of those nations, spurred by the discussion of when the Federal Reserve may begin to curb some of its stimulus.

Considering that consumers and central banks in emerging markets are significant buyers of gold, the weakness in the financial markets of these countries could have ripple effects that influence gold, analysts said.

Losses are piling up in emerging markets. India’s rupee hit an all-time low versus the U.S. dollar on Wednesday and Indonesia’s rupiah fell to its lowest level in a few years. Other big emerging markets like Brazil and Mexico are also seeing their currencies battered. Equity and bond markets in those countries are also down on worries about growth.

Hubert Moolman on SILVER and GOLD: Silver Price Forecast: Massive Debt Levels Will Push Silver To $150 And Beyond

The massive debt bubble created by our monetary system is about to burst. The demonetization of gold and silver, has over the years diverted value from these metals, to all paper assets (such as bonds) linked to the debt-based monetary system.

The process of the devaluation of gold and silver, started by the demonetization of gold and silver, is about to reverse at a greater speed than ever before. This is similar to what happened during the late 70s, when the gold and silver price increased significantly. However, what happened in the 70’s was just a prelude to this coming rally. The 70’s was the end of a cycle, this is likely the end of a major cycle; an end of an era of the debt-based monetary system (dishonest money).

Reuters: RBI should consider monetising gold: Sharma

The Reserve Bank of India (RBI) should look into the possibility of monetising gold holdings, Trade Minister Anand Sharma said on Thursday, in the latest proposal aimed at combating a yawning current account deficit that has hammered the rupee.

It was not immediately clear whether Sharma was referring to the 557.7 tonnes of gold the RBI holds in its own reserves, or gold in private hands. He did not give more details of how the proposal would work.

King World News: Unprecedented Run On Physical Gold Now Set To Accelerate

With gold and silver continuing to consolidate recent gains, today John Hathaway warned King World News that the run on physical gold may now be set to accelerate.  Hathaway also spoke about the enormous implications as this massive run on gold unfolds.  Hathaway, of Tocqueville Asset Management L.P., is one of the most respected institutional minds in the world today regarding gold, and his fund was awarded a coveted 5-star rating. 

Hathaway:  “Eric, I still think we are dealing with a shortage of physical gold vs the enormous amount of paper claims.  Of course we are seeing a bit of backing and filling in gold as August comes to an end, but I think this story is going to keep coming back.

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