Gold & Silver Digest: 9/6/13

By jasonw on Fri, Sep 6, 2013 - 8:47pm

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.

9/6/13 9:29 PM EST US close metals price quotes from Finviz

Reuters: Gold up as U.S. job growth disappoints, but posts weekly loss

Gold rose 1.5 percent on Friday after weaker-than-expected U.S. nonfarm payrolls increased confusions over when the Federal Reserve will start paring back its massive bond-buying stimulus.

Despite Friday's rally, gold ended the week 0.5 percent lower for a second consecutive weekly loss as its safe-haven appeal dropped on a lack of progress about possible U.S. military strikes against Syria.

Forbes:  Gold Survey: Survey Participants Bullish On Gold Prices For Next Week

Gold prices could rise next week, supported by the potential for U.S. military strikes against Syria and on ideas that the tapering of the Federal Reserve’s bond-buying program is not a done deal, according to a majority of survey participants in the weekly Kitco News Gold Survey

In the Kitco News Gold Survey, out of 36 participants, 20 responded this week. Of those 20 participants, 13 see prices up, while six see prices down and one is neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Kitco: Gold Bulls Keep Their Eye On The Prize: $1,500 Per Ounce

Gold bulls have felt some jitters in recent days. But, over and over again in recent weeks, short-term dips have turned into buy spots.

There are a bevy of fundamental factors on the near term horizon, which could prove gold supportive in the days ahead. The first is the U.S. Federal Reserve and whether will it taper — or not— at its Sept. 17-18 Federal Open Market Committee meeting.  Recent data does not necessarily reveal the type of strong economic recovery the Fed has hinted it would like to see.

Yet, the persistent and loud "broadcasting" of the Fed's tapering intentions may leave the central bank in a position where it needs to at least initiate a small type of "token" tapering to maintain its credibility at the September meeting. Maybe a cutback by $10 billion per month in U.S. Treasuries and another $10 billion in mortgage backed securities. Get ready for tapering. It's coming soon whether or not the data actually warrants it. But, that's not the real gold story short term.

GoldSeek: Gold: An attitude adjustment for institutional banks

The last couple of weeks have witnessed changing attitudes of large institutions concerning the gold price.  A growing number of institutional analysts are become bullish – some them ultra bullish – on gold’s near-term outlook.  What makes this unusual is the fact that only a few weeks ago they were singing a bearish tune.  The swift attitude adjustment is a testament to the strong impact of rising prices on the investor psyche.

For instance, it was recently reported that Citigroup expects gold will rise to $1,500-$1,525 – a gain of over 6% from today’s prices.  Moreover, Citigroup’s Tom Fitzpatrick’s forecast that gold could reach $3,500 “in the next couple of years.”  He also sees silver jumping to $100/oz.

Jesse's Café Américain: Gold Daily and Silver Weekly Charts - Holding the Line On a Breakout

Today was filled with cross currents, as the Non-Farm Payrolls report came in light, and looked even worse if you peered into the details of it.

The unemployment rate is less meaningful now because of the large number of people who have been long term unemployed and are falling off the unemployment benefits rolls. Labor Participation Rate and average workweek are therefore a bit more important.  And things are not looking good because the jobs that are being created tend to be low wage and often part time.

There is no real sustainable recovery, except for a few sectors that were ironically at the heart of the financial crisis five years ago: FIRE sector and the Beltway Elites. Except for some regional pockets of recovery, most everyone else is just getting by. Silver Prices - How High Could They Go?

 One of the most often asked questions by those interested in investing in silver pertains to not only how low, but how high silver’s price can go. 

The range is anywhere from a paper price of zero, given the role of the bullion banks in the decades long silver market price suppression conspiracy, to infinity in the event of a U.S. Dollar hyperinflationary scenario.

King World News:   This Is Why Gold Will Soar To $2,500 & Silver Will Spike To $70

With fear escalating around the world about the state of the global economy, and potential conflict in the Middle East, today a 42-year market veteran told King World News why gold is now set to soar to $2,500, and silver will spike to $70.  He also discussed the collapse the world is facing and why it is set to accelerate.  Below is what Egon von Greyerz, founder of Matterhorn Asset Management out of Switzerland, had to say in his interview.

Greyerz:  “Eric, everyone in the mainstream media is telling us that things are improving in Europe and in the US.  They are living in Fantasyland.  Governments and the media are feeding us with good news because this is what people want to hear.

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