Gold & Silver Digest: 8/8/13
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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8/8/13 5:52 PM EST US close metals price quotes from Finviz
Comex gold futures prices rallied sharply in late-morning dealings to end the U.S. day session with solid gains. Both gold and silver saw heavy short-covering following selling pressure seen earlier this week, with some bargain hunting also featured. The weaker U.S. dollar index Thursday was also a supportive outside market factor for the precious metals markets. Chinese economic data released Thursday was also bullish for most of the market place and especially for the raw commodity sector. China exports were up a much higher than expected 5.1% year-on-year in July, compared to a 3.1% drop in June. Chinese imports rose by a much higher than expected 11%, year-on-year. December gold was last up $23.80 at $1,309.10 an ounce. Spot gold was last quoted up $22.70 at $1,310.50. September Comex silver last traded up $0.667 at $20.175 an ounce.
Yesterday, it was HSBC . Today, the lucky respondent to JPM's polite gold 'procurement' request, is the second "fullest" New York commercial gold vault: Scotia Mocatta.
As ZH reported previously , following the announcement of an imminent withdrawal of 63.5k ounces of its gold (16% of the total), JPM's vault operations team promptly called around and to its disappointment was only able to procure a tiny 6.4k ounces: not nearly enough to preserve the impression that it is well-stocked. We then said, "None of which changes the fact that in a few days, the inventory in JPM's gold vault will drop to another record low of only 380K ounces and the JPM "rescue" pleas from HSBC and other Comex members will become ever louder and more desperate until one day they may just go straight to voicemail."
The S&P has rallied 19 percent in 2013, which is impressive by any measure. But the market did far better in 1987, when stocks added more than 30 percent from the beginning of the year to Aug. 8. The problem?
The market ended up tanking in the second half of that year—dropping 36 percent from the Aug. 25 peak to the October low, before closing out 1987 nearly exactly where it began.
The recent series of actions by the Indian government along with tax hikes on bullion imports have created an acute shortage for gold in domestic markets. Estimates released by the country’s Finance Ministry have signaled an alarming rise in illegal gold imports to the country.
The Bombay Bullion Association has stated that the tighter import curbs by the government have resulted in a huge gap between supply and demand for the precious metal. This huge gap is being partly filled by the illegal traffickers who buy the gold overseas at a cheaper rate and sells it to domestic jewelers or bullion agents by evading tax.
I spent some time rereading the prospectus and some recent filings of the SPDR Gold ETF today.
A reader had asked me a question this morning about a statement I made yesterday about the squeeze on physical bullion and how it may intensify if gold rallies. I said that GLD has to start adding back some of the bullion it has disgorged at some point, and many of those 400 oz. bars may likely have headed east, not to return.
On the heels of continued anti-gold propaganda on the part of the mainstream media, today, from Singapore, Grant Williams warned King World News that paper gold and silver claims have hit a new all-time high. This is fueling fears that a default will take place at the LBMA and COMEX. KWN is pleased to share this extraordinarily powerful and exclusive piece with our global readers. Once again, this is a warning to all global market participants to brace themselves for a coming default on one or both of the metals exchanges.
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