Gold & Silver Digest: 9/5/13

jasonw
By jasonw on Fri, Sep 6, 2013 - 12:30am

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.

9/5/13 10:40 PM EST US close metals price quotes from Finviz

Reuters: Gold at 2-week low as U.S. data fuels Fed tapering talk

Gold sank almost 2 percent to two-week lows on Thursday as upbeat U.S. economic data heightened expectations the U.S. Federal Reserve may soon rein in its massive stimulus program that has bolstered bullion prices.

The European Central Bank's pledge to keep interest rates low reversed early gains in bullion, while a lack of progress in any U.S. military action against Syria further weighed on the precious metal's safe-haven status.

Forbes: The Five Laws Of Gold

This isn’t an article about gold prices — it’s about the five golden rules of money. The Five Laws of Gold are lessons on growing personal wealth. They are from my favorite book on the subject, The Richest Man in Babylon by George S. Clason, first published in 1926 and reprinted dozens of times. I’ve read it dozens of times.

This book made such a big impression on me in my youth that I forced my children to read it when they were teens. Today, in their 20s and 30s, they have successful careers and are avid savers and investors.

Bloomberg: Structured Note Buyers Renew Gold Bets as New Fed Chair Looms

U.S. investors are increasing bets on structured notes that profit on gains in gold, as its price rebounds on the prospect of the Federal Reserve keeping interest rates low and military action in Syria.

Banks in August sold $107.4 million of notes tied to gold or companies that mine the precious metal, the biggest month since January, according to data compiled by Bloomberg.

Gold prices will stay high because whoever succeeds Fed Chairman Ben S. Bernanke probably won’t raise interest rates, said Douglas Groh, co-portfolio manager at Tocqueville Asset Management LP, in a telephone interview in New York. Bernanke’s term expires in January.

Forbes: Physical Gold Demand Slips In August

Physical gold demand slipped in August, as buyers were scared away by rising prices and investors sold, market watchers said.

For much of this year, gold demand, particularly from Asia, has underpinned prices and many market watchers credit the surge in purchases from that region as the reason why gold stabilized in July, after prices fell to the $1,182 area, basis December. However, as prices rose, demand began to soften, analysts said.

King World News: Richard Russell - Gold Basing & A Key World Market In Trouble

On the heels of continued volatility in key global markets, the Godfather of newsletter writers, Richard Russell, covered everything from stocks and bonds, to the gold market.  Russell also included 7 fantastic charts -- one of those was a key 14-year chart that showed a major breakdown in one of the most important markets in the world.

Richard Russell: My key indicator is seen below.  Here we see the Dow holding persistently and bullishly above its 200-day moving average.  How long will this constructive situation last?  Ah, if we only knew (I think it will be quite a while).

The Burning Platform: The Bull Within the Bear

Gold investors will recall there was a surge in bullion buying when the price crashed in mid-April. We saw less of this with the June decline, though global investment demand has still been stronger than what was seen in 2012.

What virtually every mainstream headline has been screaming about, though, is the huge outflows in GLD. This frustrates someone like me who knows the “paper” gold market comprises only a part of the total investment picture for gold. As the saying goes, they’re looking at only one part of the elephant.

Zero Hedge: Nixon's Impact On Gold And Inflation

Something's Different This Time..."

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Gold Silver Worlds: Ted Butler: I Own Silver Because Of The Coming Silver Shortage

Ask a hundred different precious metals investors why they hold gold or silver and, while you may not get a hundred different answers, you’ll certainly get more than one. That’s because there are many different reasons why people own precious metals. Among those reasons; protection against inflation, bank or financial system failures, currency turmoil, unsustainable government debt and money supply growth, stock or bond market collapse and perhaps some combination of all these reasons.

While I can understand these reasons and don’t have any real dispute that they may prove to provide the protection desired; all are far removed from the reason I hold and continue to buy silver. I own silver because I feel it will perform better than any other investment I am aware of, including gold. Although I am not driven by a desire for money at all costs; I am convinced that if you are going to make an investment, it should be the best investment possible. Quite simply, I believe that silver will make more money, by far, than any other investment almost regardless of future circumstances.

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