Gold & Silver Digest: 4/23/13
The Gold & Silver Digest contains headlines of stories that members of this group deem relevant and/or interesting to precious metals enthusiasts.
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4/23/13 5:55 PM EST US close metals price quotes from Finviz
Gold fell around one percent on Tuesday after the outflow from the biggest gold exchange-traded fund (ETF) accelerated, investors shifted towards other assets like equities, and as a stronger dollar put pressure on prices.
The metal retreated from the previous session's one-week high as investors were nervous about holding onto positions for long, traders said. Gold bulls were caught out on Monday last week when gold made its biggest-ever daily loss in dollar terms.
Currently it seems as if the disinformation about the reasons why gold and silver paper prices have fallen so quickly seem to outnumber the real reasons at least 10 to 1 in the mass media and though there have been some solid commentaries already regarding the real reasons why gold and silver paper prices have fallen (that have zero to do with the rubbish the mass media is selling the public), I feel that one can never have enough articles that try to disseminate the truth, especially when the truth is being bullied into submission by those with captive platforms from which to sell their fake agendas. Thus, in this article, I will discuss the truth about the current banker executed gold/silver raid and why it will ultimately FAIL.
Since the beginning of the economic crisis in 2008, conservatives have been predicting that inflation is right around the corner. They base this prediction on the vast increase in the money supply that the Federal Reserve brought about in order to keep the financial system from imploding. Because a too-rapid rise in the money supply did indeed bring about inflation in the 1970s, conservatives believe that a repetition of that experience is inevitable.
Many conservatives jumped heavily into the gold market in 2009 based on their expectation of inflation or even hyperinflation. They believe that gold is the best possible hedge against inflation because it is something real, whereas “fiat money” is essentially worthless.
Investors should own gold as a bet on global liquidity, FX Concepts Chairman John Taylor said Tuesday.
"I believe very much that you should own gold right now," he said. "Basically, there were two targets for gold on the downside in that quantitative technical game sense. One was 1,400. The other was 1,250."
On CNBC's "Fast Money," Taylor noted that the 1,400 level for gold was held. "And now we're headed up."
In an interview with Bloomberg TV, former U.S. Rep. Ron Paul (R-TX) said that he is concerned about the “erraticness” of the dollar, that Bitcoin is too complicated and that gold is still the standard by which the value of our currency should be measured.
Erik Schatzker and Sara Eisen, hosts of the show “Inside Track” asked Paul whether he’s concerned about about the recent drop in the price of gold after a ten year boom.
Welcome back. noted economist, jim grant, known for criticizing the fed, he says the central bank's easy money policy is creating opportunities in one area, private equity. jim grant of grant's interest rate observer joins us now for an exclusive interview. as always, first, jill, i want to talk to you about the opportunities. how are you? good to see you, by the way. good, by the way, i'm not an economist, maria. you're right, you're right. but you have the goods to be called an economist. i've got a couple of ideas. all right, so tell me. the world is wide open with respect to credit, right? no credit, no problem. junk bond yields, loans, leverage loans accessible on and on. and also, the stock market, as you have observed, maria, is levitating. this is a perfect world for people that deal in private equity. and there are two publicly traded private equity and so-called alternative managers that actually offer a margin of safety apart from these opportunities that are part and parcel with very easy money. you know, you rarely talk about public stocks in terms of being beneficiaries or getting an impact from the policies out there. which are those private equity firms?…
The U.S. Mint this week stopped selling its smallest-denomination gold bullion coins after surging demand ran down government inventories.
“While the one ounce gold bullion coins remain the most popular, demand for the one-tenth ounce coins has remained strong too, with year-to-date demand for these coins up over 118% compared to the same period last year,” the Mint said Monday in a memo to authorized purchasers. “Accordingly, the United States Mint has temporarily suspended sales of its one-tenth ounce gold bullion coins while inventories can be replenished.”
On the heels of Goldman Sachs telling clients to cover their short positions in gold, today the Godfather of newsletter writers, Richard Russell, writes that we are living through some of the greatest and momentous changes in world economic history. Russell also discusses the US dollar, bonds, and the key upside breakout price objective for gold.
Richard Russell: “Today's investors are in a most unusual position. I say that because I believe we are close to witnessing and living through some of the greatest and momentous changes in world economic history. It will be, historically, tantamount to those of us who fought and lived through World War II.
As the banking crisis struck in 2007-08, investor Will Mitchell sprang into action: After boning up on precious metals, he started buying fairly sizable amounts of silver bullion bars. Eventually, he switched to silver and gold bullion coins, which he considers easier to trade than bars.
The happy result: Even though precious metals prices have been falling lately, "my holdings of them are up [in value] about 100 percent since early 2008," says Mr. Mitchell, the owner of Startupbros.com in Tampa, Fla., a resource for entrepreneurs seeking to create an online business. "You can't ask for more than that."
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