Gold & Silver Digest: 9/26/13
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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9/26/13 8:40 PM EST US close metals price quotes from Finviz
Gold fell on Thursday as a rise in the dollar and mixed U.S. economic indicators prompted investors to take profits after gains in the previous session.
In U.S. economic data on Thursday, contracts to buy previously owned homes fell for a third straight month in August, while fewer Americans filed new claims for jobless benefits last week – conflicting signals on the health of the economy.
Gold futures fell for the fourth time in five sessions after a report showed U.S. jobless claims dropped unexpectedly, boosting speculation that the Federal Reserve will scale back stimulus soon.
First-time claims declined to 305,000 in the week ended Sept. 21, the Labor Department said. The median of 49 forecasts in a Bloomberg survey called for an increase to 325,000. The U.S. economy expanded at a faster pace in the second quarter, government data showed today. Earlier, gold rose as much as 0.3 percent as U.S. budget negotiations dragged on.
Gold mutual fund managers and mining analysts attending the 2013 Denver Gold Forum say they remain upbeat about the metal’s prospects for the longer term despite the slide in prices in 2013.
For one thing, they suspect that monetary accommodation will be here for a while, despite all of the fretting about when the Federal Open Market Committee might start tapering the bond-buying program meant to push down long-term interest rates, known as quantitative easing. Further, there are expectations for inflation, uneasiness with rising U.S. debt and continuing debasement of currencies.
With continued uncertainty in key global markets, today one of the wealthiest people in the financial world told King World News that the big picture is great for gold, but very bad for millions of Americans. Rick Rule, who is business partners with billionaire Eric Sprott, also spoke about the continued decline of the United States. Below is what Rule had this to say in his interview.
Rule: “As always, the big picture is interesting but you make money where the rubber meets the road. We are taking advantage of low equity prices and confusion in the resource markets. We are buying high quality companies with the view that the market will correct itself in the 2 to 3 year time frame.
Today Jack Lew says that the US will hit the debt ceiling on October 17th. I have heard that the stop date is next Tuesday from a legal perspective. I think Lew is talking the practical exigencies of dodgy accounting and the books he is currently juggling.
I suspect that most of what is going on here is political theatre as some of the House Republicans are putting on a good show for their base.
But it is most likely that adults in the government will eventually rein them in after they have played their part and can face their constituent base and say, 'See I tried.'
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