Gold & Silver Digest: 1/8/13
OK – I've received universally positive support for starting a Gold & Silver Digest for this Group. It will contain headlines of stories that I and other members of this group deem relevant and/or interesting to precious metals enthusiasts.
A reminder that I can't promise daily frequency (yet), but at least every few days should be doable in the early stages
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1/8/13 US close metals price quotes from Finviz
Gold for February delivery rose $15.90 an ounce, or 1%, to settle at $1,662.20 on the Comex division of the New York Mercantile Exchange.
Prices recouped a portion of the 2.5% drop it suffered over the three previous trading sessions.
Just a few days ago we noted the massive surge in physical gold coin sales from the US Mint, with silver surprisingly lagging. Today, we see an even more dramatic surge in the sales of physical Silver Coins in the first week of January, which in a few short days hit 3.94 million oz, already surpassing the entire December total of 1.64 million ounces. It seems that the paper-to-physical currency rotation is gathering pace even as, or thanks to the trillion dollar platinum coin mercifully ending its 15 minutes of page-clicking, ad revenue infamy. In the secondary market, inventories (via APMEX) of Silver coins remain negligible, if any: American Eagles are available as follows: 2013s may be available 1/18, maybe not; 2012 – 0; 2011 – 0; 2010 – 0; 2009 – 0; 2008 – 0; 2007 – 0; 2006 – 0; 2005 – 0; 2004 – 0; 2003 – 0; 2002 – 0. They do have some 2000, 2001 and 2007, all about $5-6 over spot!
Gold's weakness was set off by Thursday's release of the minutes from the Fed's last meeting, which showed that several Fed officials thought the central bank would be able to slow or stop its bond purchases – a method of increasing monetary stimulus that goes beyond low interest rates – well before December 2013.
Silver's slip Friday made its value at its cheapest compared to gold since late August, with 55.76 ounces of silver now equal to one ounce of gold, against 50.4 in early December.
Despite the vol-compressing efforts, the S&P 500 closed down for the second day in a row as the last 30 minutes or so saw a totally normal +/-5point roller-coaster around VWAP in its very 'human' way. The afternoon's dips and rips as VIX melted down further (now recoupled with SPX) had the feel of hedged longs unwinding both legs and for sure VWAP was the focus as Treasury yields fell and the USD rose on the day. Despite USD strength, precious metals rose into the green for the week. Risk assets in general saw correlations rise as the day progressed but the very narrow 10 point or so range that ES has traded in since the initial gap-open on Jan 2nd seems vulnerable here – and perhaps explains the urgency to compress the front-end vol to keep us up. Interestingly S&P 500 futures closed today at almost exactly the VWAP for the year (around 1452) so far. HY credit dumped into the close but overall it was a normal day of two halves – selling into the European close and buying after…
"Dr. Doom" Marc Faber told CNBC on Tuesday that he owns gold even though the precious metal may be heading south.
"I don't think [gold] will go up right away, and we maybe have a correction of 10 percent or so on the downside," the publisher of The Gloom Boom & Doom Report said in a "Squawk Box" interview.
Last night we reported that in the encroaching attempt to globalize the fiat ponzi regime, in Japan's latest rush to crushTM (sounds even better than race to debase) its currency it would proceed to monetize even more debt, only not its own debt – a strategy that has failed miserably to stimulate inflation for the past 30 years – but that of Europe.
So far so good, and perfectly expected in a monetary lunatic asylum in which coining money without an appropriate collateral backing is actually considered sound monetary policy by Nobel prize winners.
On gold, he says if it breaks its trend line, it can correct to $1300 or $1400 an ounce. If it pushes higher, it’s quite easy to say it could go way up.
“It’s very unlikely to go sideways for the next 14 months like the last 14 months,” he said.
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