Gold & Silver Digest: 5/23/13
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.
5/23/13 6:54 PM EST US close metals price quotes from Finviz
Gold rose sharply on Thursday as investors sought its safe-haven status after the dollar and equity markets were hit by a slew of weak manufacturing data that indicated stagnant global economic growth.
Stock markets around the world fell, extending the previous day's sharp losses, on concerns about global economic growth and the timing of the ending of the U.S. Federal Reserve's stimulus program.
It didn't take much to bring beleaguered gold traders back from the brink. Jitters in Japan and fear over the Fed have stoked a reversal in gold that follows a seven month, 25% slump.
While the most widely traded metal is still only about $25 away from the two and a half year low it hit in April, Paul Schatz, president of Heritage Capital, thinks there's currently a lot more upside than downside in gold.
"This is probably only half or three-quarters of the way done," Schatz says in the attached video of the long-term rally in gold. In fact, in a recent note to clients he wrote, "I do not believe there is enough evidence at this time to conclude that the secular bull market in gold has ended."
In this episode of the Keiser Report, Max Keiser and Stacy Herbert have a look at the narcissists' rally as we drown in central banking their currency wars and their quantitative easing without wealth creation. In the second half, Max talks to Jim Rickards, author of Currency Wars, about why we don't need to worry about a recession – because we're in a depression! They discuss US Federal Chairman, Ben Bernanke's, plan to not Beggar Thy Neighbor, but Enrich They Neighbor by jumping out of the printing plane together with simultaneous devaluations. And, in terms of gold, Keiser and Rickards suggest maybe it's the Chinese manipulating the price of gold . . . and not the US Federal Reserve.
Ian Wyatt: Today’s letter is a bit on the long side. But I hope you’ll read it all the way through because it encompasses all of my thoughts on gold: one of the most important asset classes, and something I’ve owned in my personal account since 2006. If you own gold, gold investments or have any plans to buy gold in the future, today’s Daily Profit is a must-read.
First off, I’m not going to predict a speedy recovery for gold prices. That said, I continue to believe that gold offers investors safety in an uncertain world – which is why I added more exposure to the yellow
Buying your own pot o’ gold – or even just a few coins – could get a little cheaper for Texans.
Under current state law, the 6.25 percent sales tax applies to purchases of gold and silver coins under $1,000. But House Bill 78, which was passed by the Texas Senate on Tuesday and awaits Gov. Rick Perry’s signature, eliminates the sales tax, “making it more economically feasible for lower and middle income Texans,” the bill’s analysis reads.
Today's Fed Minutes showed no consensus among Federal Reserve officials. Jim Grant, Grant's Interest Rate Observer, shares his reaction.
Geologists have discovered a large gold mine in the western part of the region of Xinjiang, a vast area that Chinese leaders are exploiting for its natural resources, according to a report by Xinhua, the state news agency.
The mine is in the Ili Valley, near the Kazakh border, and is believed to have gold reserves of at least 53 tons, which is worth about $3.2 billion, according to the report, which was published Tuesday.
An analysis of the Top 50 Gold Mines.
Sprott Silver Equities Class Co-Manager Maria Smirnova understands the power of leverage. She has seen the big impact even a slight increase in the silver price can have on silver producers. Every cent is multiplied and goes right to the investor's bottom line, giving the equities more upside than possible in a coin. That is why Eric Sprott increased holdings of silver equities in certain Sprott funds, as explained in this interview.
The Gold Report: Maria, in April Eric Sprott sold more than $45 million ($45M) worth of units in the Sprott Silver Physical Trust. A spokesperson told Canada's Globe and Mail that the sale was needed to cover charitable obligations and to buy shares in silver mining companies because Mr. Sprott believes silver equities will outperform the metal in the next rally. Can you fill in the details on that thesis?
In the context of the current U.S. Dollar valuation bubble, silver’s eventual price rise seem inevitable.This paper currency bubble commenced with a desperate flight to quality, despite the fact that the U.S. Dollar had been an intrinsically worthless currency since it was taken off the gold standard by Nixon in the early 1970’s.
Silver is one of many sought after investment choices when risk aversion is high. What makes it a convenient choice happens to be that the metallic commodity has special qualities that have historically made it one of the best forms of money.
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