Gold & Silver Digest: 9/2/13

By jasonw on Mon, Sep 2, 2013 - 7:52pm

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.

9/2/13 8:31 PM EST US close metals price quotes from Finviz

Reuters: Gold slips for fourth session as Syria worries, strong data weigh

Gold edged lower for a fourth straight session on Tuesday as its safe-haven appeal was dented by a delay in a potential U.S. strike on Syria and strong global economic data.

Bloomberg: Gold Bulls Increase Wagers to Highest Since January: Commodities

Hedge funds and other speculators are making the biggest bet on a gold rally since January as mounting signs that the U.S. will lead a military strike against Syria drove prices to a three-month high.

Money managers boosted their net-long position by 34 percent to 97,902 futures and options by Aug. 27, the most since Jan. 22, U.S. Commodity Futures Trading Commission data show. Holdings of short contracts tumbled 37 percent to 32,088, the biggest drop in 11 months. Net-bullish holdings across 18 U.S.- traded commodities climbed 18 percent to 824,251, the highest since February.

PeakProsperity: Gold & Silver Weekly Recap: A Brief Correction With Bullish Undertones

Gold finished Friday down $10.60 on average volume to 1396.20, with silver down $0.35 to 23.56 also on average volume.  The gold/silver ratio rose to 59.26.  It appears that the correction from seriously overbought silver is proceeding apace, although the lack of particularly strong volume on the down-days I interpret as a bullish sign overall - that the uptrend remains in place even though PM prices are now correcting.

The three day correction in gold and silver has relieved the overbought condition in both metals.  Looking at the charts, gold 1380 and gold 1350 should act as good support, and I see silver 23 as good support also.  Those are not "red lines" or anything, just prices at which traders will be more likely to buy the dip.

King World News: Art Cashin Warns Of Massive Gold Short Covering & Contagion

Today 50-year veteran Art Cashin warned King World News that the recent short squeeze in gold may continue and possibly even intensify.  Cashin, Director of Floor Operations at UBS ($650 billion under management), also warned that about the potential of a dangerous contagion developing in the currency markets.

Eric King:  “Art, you had warned (on KWN back on July 12th) about a short squeeze in the price of gold, and we have certainly seen that (since then).  But the interesting thing is that even into the early part of this week, that squeeze (in gold) was continuing.  Gold is still in backwardation, which you bought up (July12th), and the physical market is incredibly tight.  Is it possible that this short squeeze (in gold) may continue and even intensify?  Your thoughts on where gold is headed, Art?

Jesse's Café Américain: Gold Daily and Silver Weekly Charts - End of Month and Delivery Period Antics

The US is having a three day weekend because of the national holiday on Monday.

Let's see how the rest of the world muddles through in the markets without its guidance.

War drums are still beating for Syria, but with Britain standing aside there is a bit of a wobble.  Who Says Gold Is Money? (Part Two)

Who is right? Warren Buffett and Charlie Munger and many more say you shouldn’t own gold. Ray Dalio, David Einhorn, Jim Rogers, John Paulson, George Soros, and I (among many others) own some gold—but that doesn’t mean you should own it.

Many people believe Warren Buffett is the magic Jesus of finance. He’ll be the first to tell you he is not. He’s made a lot of mistakes. He held on to Berkshire textiles for too long; he bought and sold Conoco Phillips for a $2 billion loss a couple of years ago, and more. But he’s avoided the really big mistakes, and he positioned himself to prosper in the wake of the financial crisis—irrespective of any taxpayer’s opinion about the methods. He also engaged in a huge successful silver speculation many years back. He might be right about gold today.

SilverSeek: 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).

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