Gold & Silver Digest: 9/3/13

By jasonw on Tue, Sep 3, 2013 - 6:14pm

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.

9/4/13 3:14 AM EST US close metals price quotes from Finviz

Reuters: Gold rises as Obama garners support for Syria strike

Gold extended gains to a second session on Wednesday as U.S. President Barack Obama gained support from key Congressmen for a limited strike against Syria. 

Spot gold edged up 0.1 percent to $1,413.40 an ounce by 0015 GMT, after gaining 1.3 percent on Tuesday on safe-haven buying. 

Bloomberg: Africa’s Biggest Gold Mining Union Begins Strike

The National Union of Mineworkers, representing almost two-thirds of gold miners in South Africa, began a strike over a wage dispute.

NUM members have begun their protest, Charmane Russell, a spokeswoman for the Chamber of Mines, said today by phone. The chamber represents seven gold companies in wage talks. Most workers walked out at Gold Fields Ltd. (GFI)’s South Deep mine, said Sven Lunsche, a company spokesman.

Forbes: Technical Trading: Gold Remains Supported By Geopolitical Worries

Financial markets remain jittery and nervous regarding events over Syria as the U.S. Congress will soon begin its debate over military action against Syria. Gold saw brief traditional safe-haven buying on early morning news reports that Russia’s early warning system detected two missiles were launched in the Mediterranean. News reports remain limited regarding the origin of the missiles.

Technically, the initial reaction in the gold market to the news reveals that the yellow metal is likely to retain a bid as the geopolitical uncertainty remains at high levels this week. Crude oil futures also saw a strong bounce from overnight lows on the initial reports, but have since eased off like gold.

Bloomberg: Turkey’s Gold Imports Declined to Seven-Month Low in August

Turkey’s gold imports declined 63 percent to a seven-month low in August as prices reached the highest in three months. Silver imports fell 9.3 percent.

Gold imports fell to 13.66 metric tons, the least since January, from 37.02 tons in July, according to the Istanbul Gold Exchange’s website. Inward shipments were about 230.6 tons in the first eight months this year, almost double the amount in all of 2012. Prices rose to $1,433.83 an ounce on Aug. 28, the highest since May 14.

BusinessWeek: Scrap Gold Sales Jumping in India as Price Advances to Record

Sales of scrap gold in India are surging as the plunge in the nation’s currency drives bullion prices to a record, easing a supply crunch caused by curbs on imports by the world’s largest consumer.

Supplies of recycled bullion, mostly coins and bars, have climbed to 100 kilograms to 150 kilograms a day in Mumbai, the country’s biggest gold market, from 5 kilograms to 10 kilograms a week earlier, said Prithviraj Kothari, managing director of Riddhisiddhi Bullions Ltd. Investors, who bought the metal at lower prices, are leading the rush to sell, said S. Venkatesh Babu, president of the Jewellers’ Association of Bengaluru.

Business Insider: 3 Troubling Things Your Financial Adviser Won't Tell You About Gold

One of my favorite books is "Making Money" by Terry Pratchett.

In it, a former con man, Moist von Lipwig, is put in charge of the mint by the city's benevolent dictator. He is opposed by the head clerk of the bank, Mr. Bent -- who is all about the virtue of gold. Mr. Bent insists that acurrency must be backed by gold in order to be truly legit. 

On the other hand, Moist believes that it's OK to print money. And as long as it goes 'round and 'round, everything will be fine -- whether or not there's actual gold in the bank's vault.

GoldSeek: Off to the Races

Summer is traditionally a slow season for precious metals, but this summer started with a rout. In the last week of June, gold and silver hit 2-year lows of $1,192 and $18.61 respectively.

Fortunately, after staggering along the lows, the precious metals are off to the races once more - with gold rallying more than 18% and silver 31%. This remarkable performance continues even in the face of the Fed's sustained tapering threats.

The exhaustion of short-sellers paired with insatiable global physical demand has positioned gold for an exciting conclusion to a volatile year.

Silver Bear Cafe: Gold Gained Back All Its Losses and Silver Rocketed Higher

Ah, Labor Day, in which the nation's Labor Force, takes the day off.  We're told the economy is "recovering"; but not why the ranks of unemployed are surging – let alone, the "underemployed" not included in this chart, such as the fast-food workers in 60 cities that went on strike this weekend, seeking a more than doubling of wages to offset the rising cost of living.

Not to mention, the fact that due to Obamacare, many restaurants are no longer offering full-time, benefit-paying positions.

In Europe, too, we are told the economy is "recovering" – per a recent "diffusion index" showing manufacturing employment slightly above 50 last month.

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