Talking Bitcoin, Gold And Silver

A momentous thing just happened -- Bitcoin breached $1,000.

Is it a bubble? Who knows, but one thing is certain, you can buy a lot more gold and silver with one bitcoin than you could a year ago.

Fiat Alternatives
There are many parallels between bitcoin and gold, both are alternatives to fiat money, both are faceless currencies and both have limited supplies. However, in the last two years one has seen its price climb from $7 to $1000, the other has fallen from $1,900 to $1200.

Which begs the question: is bitcoin is the new gold?

Gold and Silver : 20 ‘Tough’ Questions for Eric Sprott

Eric Sprott founded Sprott Asset Management LP in 2001. Sprott Asset Management is an independent asset management company headquartered in Toronto, Canada. The company manages the Sprott family of mutual funds, hedge funds, physical bullion funds and specialty products and is dedicated to achieving superior returns for its investors over the long term.

Eric Sprott recently answered a number of questions on the minds of gold and silver investors, and we hope you’ll find his insights valuable.

China Already Tops Record For Full-Year Gold Demand

Gold demand in China remained robust in the third quarter, with the country already topping its previous full-year record for gold buying, the World Gold Council reported Thursday.

Gold Next Week: Survey Participants Torn Over Gold Market Direction

 

By Debbie Carlson

Friday’s U.S. monthly jobs report did not provide any guidance for market direction, so market participants are back to debating whether or not gold can break out of its current range. Participants in the weekly Kitco News gold survey are equally torn over next week’s price direction. 

Gold and Silver Prices Outlook for June 3-7

Gold and silver didn’t do much on a weekly scale as gold inched up while silver slipped. Their unclear trend coincided with the developments in the currencies markets as the Euro rallied against the USD while the Aussie dollar and Canadian dollar depreciated during last week.  

Last week, several U.S reports were published: GDP for the first quarter was slightly revised down to a growth rate of 2.4%; pending home sales rose during April; jobless claims increased by 10k to reach 354k. By the end of the week China’s manufacturing PMI was published, in which the index inched up to 50.8 in May. This news may help rally commodities prices next week. 

Will precious metals bounce back this week?  

Gold and Silver Prices Outlook for June 2013

The high volatility in the precious metals markets eased down during May after the high movement they have had during April. The recent publication of the minutes of the FOMC meeting from back in May and Bernanke’s testimony in Congress rekindled the speculations around the Fed’s next move; specifically, whether the FOMC will decide in the near future to taper its $85 billion a month asset purchase program. 

6 Reasons Why Gold Stocks Will Begin A Big Rally

GMD

1. Huge rallies begin from these conditions

Below is the NYSE Gold Miners Index which is tracked by the GDX ETF. Look at the RSI. Not only did it reach a multi-decade low but it has remained oversold far longer than during the comparable periods. In the four previous periods, the market rebounded suddenly and strongly in percentage terms. Meanwhile, the bullish percent index, a breath indicator is more oversold than in 2008. We plot the indicator with a 10-week moving average that shows it as far more oversold than in 2008. While this indicator does not go back that far, odds are it is likely at a 13-year low.

Gold: New Resistance Found At 1,382

By Mingze Wu  

USD enjoyed gains yesterday after 2 Fed officials, James Bullard and William Dudley, lent support to current QE purchase program, with Bullard saying that the Fed should continue its current program, and Dudley going one up and suggest that the Fed may adjust pace of asset purchases higher depending on the economic outlook. US stock rallied higher as the 2 aforementioned Fed members held voting rights, unlike the 2 Fed members John Williams and Charles Plossers who were rather vocal recently on their unhappiness over the QE program and want it to be shut down sooner rather than later.

Gold prices traded sharply lower during US trading session, showing once again that the yellow metal is driven by USD strength and not on QE inflation risks. This is a long known fact, but perhaps it is a timely reminder especially given that Ben Bernanke will be speaking later this evening (morning US hours) with regards to QE in Congress. Should Ben Bernanke maintain his dovishness tonight, it is likely that stocks will continue to rise, pulling USD along with it hence making Gold lower. However, if Ben choose to be hawkish (unlikely), there remains an outside chance that USD would still strengthen due to expected lower liquidity in the future, which would again drive Gold lower. This makes tonight’s event leaning favorably for Gold bears.

Hourly Chart

  XAU/USD_1

Gold and Silver Prices Outlook for May 20-24

Gold and silver continued to trade down during last week. Their sharp fall coincided with the depreciation of leading “risk related currencies” such as Euro and Aussie dollar against the USD. Moreover, the ongoing rally of U.S equity markets is also contributing the decline in demand for bullion as an investment.  Last week, U.S retail sales edged up by 0.1% during April. On the other hand, Philly Fed index fell in May; housing starts sharply fell by 16.5% in April; jobless claims sharply increased by 32k to reach 360k; the PPI fell again by 0.7% during last month.  

Will gold and silver continue to trade down this forthcoming week?  

Gold Survey: Weaker Gold Prices Expected Next Week

A stronger dollar and continued strong equities are expected to weigh on gold prices next week, with a majority of participants in the Kitco News Gold Survey forecasting weaker prices.

In the Kitco News Gold Survey, out of 36 participants, 28 responded this week. Of those 28 participants, nine see prices up, while 17 see prices down and two see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Bull Market Ended?

Has the Silver and Gold Price Bull Market Ended?

Silver and GOLD PRICES were humiliated again today. Silver dipped 30.4 cents to 2233.9c. Gold dove $22.20 to $1,364.90. No sign yet of turning round.

However, silver's lows yesterday and today ran about 2206c (different charts give different figures). That's enough to call it a double bottom with the 2200c low on 15 April, but not enough to say it won't drop lower. It will have to show that next week.

Paper Gold, Metal Gold – When Worlds Diverge.

by Golem XIV 

The price of gold is going down. That is what the charts, newspapers and pundits are all saying. What I think they are deliberately not saying is that the value and desirability, as opposed to the price of gold, is going up and will go up further.

Make no sense?  Well I think it does if you remember there are two types of ‘gold’ for sale. One is metal, the other is paper. It is paper gold that is being dumped not the metal. The metal is being bought at a fair old rate. But because there is so much paper gold around and the major sellers and market makers in paper gold prefer metal and paper to be confused, even thought to be identical (their trade depends on this confusion), no one seems to be pointing out the very different dynamic happening in paper and  metal gold.

Gold And Silver ~ Weekly Recap for May 13-17

Despite the less than impressive financial news regarding the progress of the U.S economy that came out during last week the equity market continued to rally, while gold and silver prices declined. Last week, the U.S retail sales inched up by 0.1% during April. On the other hand, Philly Fed index decline in May; housing starts sharply fell by 16.5% in April; jobless claims sharply increased by 32k to reach 360k; the PPI fell again by 0.7% during last month.  In the currencies markets, during the previous week, the Euro and Aussie dollar tumbled down against the USD by 1.15% and 2.94%, respectively. Their sharp fall might have partly contributed to the plunge in precious metals prices.

Here is a short recap of the developments in precious metals prices between May 13th and May 17th:

Precious Metals Recap:  

Gold price tumbled down during last week by 5%; moreover, during the week, the average weekly price reached $1,401.32 /t. oz which was 3.96% below last week’s average rate of $1,459.14 /t. oz. Gold ended the week at $1,364.7 /t. oz.

Silver, much like gold, sharply fell during last week by 5.5%; further, the average weekly rate decreased by 3.76% to reach $22.94/t oz compared to last week’s average $23.83/t oz.

During last week, the average daily percent changes of gold reached -1.019%; silver had an average daily change of -1.118%.

The chart below presents the changes of precious metals, as their rates are normalized to 100 as of May 10th. Gold and silver prices sharply declined during last week.

The second chart presents the daily percent shifts of bullion prices (or in other words the changes around the trend). Silver and gold declined during the week. Precious metals prices daily percent changes ranged between 0.16% gain and 3.05% drop.

Source

Gold Retail Sales In India Swell 15%

Gold sales are expected to have crossed 25 tonne in volume terms in India on Akshaya Tritiya this year, as compared to 17 tonne last year.

MUMBAI (Mineweb) 

Akshaya Tritiya, the biggest gold buying festival in India, triggered a mad rush for the precious metal on May 13. Jewellers in Mumbai reported a double-digit jump in sales over last year, with customers showing a strong preference for heavy, thick-set ornaments, gold bars and coins.  

Initial estimates from the industry have pegged sales at around 4 tonne in the island city of Mumbai alone, while in Kolakata, gold weighing about 500 kilo was sold in 3 hours flat on the auspicious day.

Across Mumbai, though jewellery stores were closed all of last week, opposing the Local Body Tax to be imposed in the city, most of the stores opened up early on Monday, decked with marigold flowers and twinkling lights.

US Dollar Strength, Economic Data May Influence Gold

Gold price direction next week is likely to be influence by the strength of the U.S. dollar, along with U.S. economic data on manufacturing, retail sales and inflation.

June gold futures fell Friday, settling at $1,436.60 an ounce on the Comex division of the New York Mercantile Exchange, down 1.89% on the week. July silver slipped Friday, settling at $23.658 an ounce, down 1.48% on the week.

In the Kitco News Gold Survey, out of 36 participants, 25 responded this week. Of those 25 participants, eight see prices up, while 11 see prices down and six see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Gold Futures Sink As U.S. Dollar Soars

BNP cuts gold view, but says $1,600 will be reached again

MADRID (MarketWatch) — Gold futures fell sharply on Friday, as the U.S. dollar extended its rally against the Japanese yen.

BNP Paribas cut its gold price view, but said the metal will be trading back above $1,600 an ounce in six months.

June gold futures GCM3 -2.83%  fell nearly $40, or 2.7%, to $1,428.70 an ounce on the Comex division of the New York Mercantile Exchange.

Gold and Silver Prices Outlook for May 2013

Gold and silver prices tumbled down during April.  The minutes of the FOMC meeting may have been the trigger for the sharpest fall in the prices of bullion in a single day in recent decades. The rise in volatility of gold and silver prices in recent weeks may have been the main reason for the CME to raise on April 15th its margins on gold and silver by 19% and 18.5%, respectively. This decision may have been the key factor in pulling down the prices of gold and silver on April 15th. This tactic of raising margins was done in past including in 2011 when gold and silver sharply increased. 

 

The decision back then pulled down the prices of gold and silver as was the case on April 15th. Other contributing factors may have been the negative report of Goldman Sachs about gold, and the slowdown in growth in China – among the leading countries in importing gold and silver. Even the ongoing rise in the U.S money base, partly due to the FOMC’s QE3 program, doesn’t seem to help rally gold and silver prices. Will gold and silver continue to dwindle during May? Let’s analyze the precious metals market for April and provide a short outlook for gold and silver for May.

Gold and Silver Prices Outlook for May 6 -10

Gold and silver slightly rose during last week. Their rally coincided with the recovery of other commodities such as oil and leading “risk related currencies” such as Euro and Aussie dollar against the USD.  Last week, the FOMC and ECB decided on any changes to their respective monetary policy. The ECB decided to cut its interest rate by 0.25pp to 0.5%. The FOMC kept its policy unchanged including its $85 billion a month asset purchase program. 

Nonetheless, the speculation around the next move of the Fed may have pulled bullion rates into different directions. The recent non-farm payroll report didn’t seem to stir up much bullion market despite its better than expected gain in employment. 

Will gold and silver continue to recover this upcoming week?  

Chinese Mothers Beat Wall Street To Force Gold Price Rebound

Attempts by Wall Street funds to drive down bullion value through short selling thwarted by Asian mothers swooping in to buy for weddings.

Enoch Yiu and Daniel Ren in Shanghai

Gold prices are rising again as Asian mothers take advantage of the recent weakness in the price to buy jewellery. 

Chinese mothers have beaten Wall Street hedge fund managers in forcing a turnaround in the price of gold after it dropped last month.

Taking advantage of the steepest drop in three decades, they have shored up prices by splashing out on gold for their daughters' weddings in the past couple of weeks, foiling the plan of finance gurus who have been short selling the precious metal in the hope of pushing it lower.

Gold Bull Run Seen Over as Bear Drop Frays Faithful

Gold’s longest winning streak in at least nine decades is poised to end as diminishing trust in the metal’s ability to preserve value spurred a majority of analysts to predict the first annual retreat since 2000.

Prices will close the year at $1,550 an ounce, 7.5 percent less than at the end of 2012 and the biggest drop since 1997, according to the median of 38 estimates compiled by Bloomberg. Investors are selling bullion held through exchange-traded products at the fastest pace on record, hedge funds accumulated their second-biggest bearish bet ever and futures had their biggest two-day drop in 33 years last month.

Gold futures spike to session highs after Draghi, ECB rate cut

Gold futures rose sharply on Thursday, hitting the highest level of the session as the European Central Bank cut interest rates to a record low in May.

Prices also remained supported after the Federal Reserve re-affirmed its commitment to leave interest rates unchanged near zero and continue buying USD85 billion in debt each month on Wednesday.

Gold can benefit from such an environment of easy money because of expectations that ample liquidity would put a damper on the value of paper currencies.

Silver and Gold Prices Both Fulfilled Yesterday's Suspicions by Dropping Today

Silver and GOLD PRICES both fulfilled yesterday's suspicions by dropping today. Gold slumped $25.90 to $1,446.30 while the SILVER PRICE backslid 83.9 cents to 2330.5c.

Gold Bears Defy Rally as Goldman Closes Short Wager

By Tony C. Dreibus 

Hedge funds accumulated their second-biggest bet against gold on record just as prices rallied the most in 15 months on surging demand for coins and jewelry and Goldman Sachs Group Inc. ended a recommendation to sell.

Majority Of Participants See Higher Gold Prices This Week

Gold Survey

Following last week’s surge in gold prices, the majority of analysts in the weekly Kitco News Gold Survey expect prices to continue to rise.

In the Kitco News Gold Survey, out of 35 participants, 24 responded last week. Of those 24 participants, 14 see prices up, while eight see prices down, and two see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Many of the participants were encouraged by the unprecedented demand in the physical gold market and the influence that’s had on lifting benchmark futures prices. Because of the $100-plus an ounce rebound from last week’s lows, they see values marching higher.

Gold Price Setters Battling Asia's Demand

NEWS ANALYSIS: 

BY CHRIS HART, APRIL 28 2013, 08:08

LAST week the gold price fell $200 an ounce in two trading days, almost reaching the $1,300/oz level (though it recovered by $150/oz this week).

First Half of Key Reversals

Silver and Gold Prices Posted the First Half of Key Reversals Today

Gold Price Close Today : 1,453.60

Gold Price Close 19-Apr-13 : 1,395.30

Change : 58.30 or 4.2%

The Whole World Is Talking About Gold

by Jan Skoyles - The Real Asset Co

This is our third release from The Real Asset Report. Here we take a look at how, despite calls that the gold bubble is finished, the whole world is still talking about buying gold.

Read any financial paper or website and they’ll tell you that the ‘gold-bubble’ is over. This opinion appears to be based solely on price and not much else.

Gold Price Rises On Demand From Central Banks

 

Public Gold bars. The gold price today climbed to its highest in more than a week.

 

- Reuters

Gold prices on Thursday climbed to their highest in more than a week during trading in Singapore, boosted by prospects of more central bank buying after a recent steep sell-off in the precious metal.

Central bank purchases and surging physical demand helped gold bounce from a two-year trough around $1,321 an ounce hit last week, dealers said. But daily outflows from exchange-traded funds, reflecting sagging investor confidence, capped gains.

Wold Gold Council (WGC): Gold’s Potential in 2013

By Michelle Smith - Exclusive to Gold Investing News

2013 has seen a renewal of risk appetite and with that has come concern about the outlook for gold. A recent World Gold Council (WGC) commentary notes that the metal ended 2012 on a bittersweet note, but adds that the metal’s ability to put a 12th notch in its string of annual gains reflects underlying drivers. Overall, the organization’s report brushes away pessimism about gold and outlines the metal’s potential in the current environment.

Has Gold Price Topped?

by Anthony Dass

To answer this question, it is essential to get back to history. Gold was always money until 1971 when US President Richard Nixon and the International Monetary Fund decided it would no longer be so. This decision worked well because oil was firmly linked to the US dollar and vice versa. It allowed the US to dominate the oil producers who were dependent on the country for their security.

Falling Prices Spark Gold Rush

JEDDAH: IRFAN MOHAMMED
arabnews.com/news

The crash in the prices of the yellow metal has sparked off a gold rush across Saudi Arabia.

In the last three days, gold souks in the Kingdom have come alive with buyers flocking to cash in on the sharp drop in gold prices.

Most of the shop owners in the gold souk in Kandra said that their businesses have increased 50 percent in the last three days, whereas those in Balad said sales of 22-carat had gone up by more than 75 per cent and were expected to rise further.

Gold Claws Back Losses After Biggest Fall In 30 Years

HONG KONG: Gold prices recovered slightly after suffering their heaviest slump in 30 years triggered by weak Chinese growth data and reports Cyprus was planning to sell part of its reserves.

Analysts said the 13 percent drop in prices between Friday's open and Monday's close could show gold's 12-year bull-run was at an end, with investors turning away from the metal, which is traditionally a hedge against inflation.

The Gold Price Gained... What is the Bigger Message Markets are Sending Us?

Cannot tell anything from bounces the silver and GOLD PRICE made today. A dead cat dropped from the 2nd story might have done as well. Gold gained $26.20 to $1,386.80 while silver rose 26.7c to 2362.2. The GOLD/SILVER RATIO, however, is only very slowly rising, today at 58.708.

At this point, another leg down is possible, taking the GOLD PRICE to $1,250. 

Why Is Gold Crashing?

Gold Crashes Most in 30 Years … What Does It Really Mean?

Gold has fallen off a cliff.   It has fallen faster than at any time in the last 30 years.

Zero Hedge notes:

Adding insult to injury, the Shanghai Gold Exchange overnight announced that following the tumbling precious metal prices and limit down drop in early trading, it may raise trading margins for its gold and silver forward contracts.

(Margin calls tend to trigger further selling.)

Gold, Why So Volatile?

By Staff Report

Gold tumbles to two-year low ... The slide in gold prices became a rout on Monday as the precious metal tumbled a further 5 per cent to its lowest level in two years. Bullion was swept up in a wider sell-off across markets after Chinese growth figures disappointed. But the momentum behind gold's fall has been building for several months, with investors increasingly questioning whether the metal's decade-long bull market may over. – Bloomberg

The Gold Price Broke it's Two Year Support and Must Turn Up Next Week

beforeitsnews.com/gold weekly price

Gold Price Close Today : 1,501.00

Gold Price Close 5-Apr-13 : 1,575.40

Change : -74.40 or -4.7%

Monteray Mining Starts Gold Drilling At Pepin, Burkina Faso

Monteray Mining (ASX: MRY) has kicked off 9000 metres of reverse circulation and aircore drilling at its Pepin North gold prospect in Burkina Faso to test multiple targets over three project areas.

This follows the receipt of all rock chip results from its recent detailed mapping program of both Pepin North and Pepin South.

Notable assays include 4.36 grams per tonne (g/t) gold, 3.51g/t gold, 3.4g/t gold and 2.42g/t gold.

Gold Price in April 2013

It seems that collective memory is becoming shorter and shorter. Given this weeks’ performance in the precious metals, people have forgotten that only two weeks ago Cyprus was on the brink of unraveling not only the European union, but the sacrosanct foundations of fractional banking, with the crisis highlighting the fundamental fault lines of both.

Soros Says Gold's Safe-Haven Status Is "Destroyed" as Small Speculators Slash Bullish Be

The GOLD PRICE ticked lower against the US Dollar early Monday, but held onto the bulk of Friday's sharp rally at $1577 per ounce as world stock markets rose alongside commodities.

Silver bullion traded at $27.30 per ounce, some 2.5% above last week's 9-month low, while both Sterling and the Euro extended their gains versus the US currency, pushing the gold price below £1030 and €1215 per ounce respectively.

Technical Correction ~ Gold Ends Weaker on Chart Consolidation

Gold prices ended the U.S. day session modestly lower in quieter trading Monday. The market saw chart consolidation and a technical pullback following Friday’s gains. June Comex gold last traded down $3.60 at $1,572.30 an ounce. Spot gold was last quoted down $9.60 at $1,572.25.  May Comex silver last traded down $0.055 at $27.165 an ounce.

The Gold Price Bottomed Friday Confirmation Will be a $1,600 Close this Week

Gold ‘Bubble’ Seen Turning to Bear Market

Gold ‘Bubble’ Seen Turning to Bear Market by SocGen on Recovery

By Nicholas Larkin - Apr 2, 2013 

Gold is in a “bubble” after the best annual run in at least nine decades and will head into a so-called bear market as a stronger U.S. economy helps increase interest rates and cut bullion demand, Societe Generale SA said.

Investors are unlikely to raise gold holdings because inflation has remained low, signs that the economy is improving may spur the Federal Reserve to curb stimulus and the dollar has strengthened, the bank said today in a report. Bullion is down 4.6 percent this year after 12 straight annual gains and would need to drop another 4.8 percent to mark the common definition of a bear market.

Gold Seeks Fresh Start For Second Quarter

chart - marketoracle.co.uk

(Kitco News) - The second quarter kicks off next week, but the outlook for gold is expected to remain not much different than what is currently influencing the metal: underlying support from concerns in the eurozone and loose monetary policy, but not enough to push the metal into a new price range.

See Higher Prices Next Week ~ Majority Gold Surveys

Higher prices are expected by a majority of participants in the weekly Kitco News Gold Survey, as the lingering eurozone worries and demand for gold at under $1,600 an ounce is expected to keep the market lifted.

In the Kitco News Gold Survey, out of 34 participants, 27 responded this week. Of those 27 participants, 17 see prices up, while six see prices down, and four see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

China Gold Reports Tibet Landslide; 83 Trapped

VANCOUVER, March 30, 2013 /CNW/ - China Gold International Resources Corp. Ltd. (TSX: CGG; HKEx: 2099) (the "Company" or "China Gold International Resources") announced that a landslide occurred at Jiama Mine's exploration area, a mine operated by Tibet Huatailong Mining Development Ltd., the wholly-owned subsidiary of China Gold International Resources Corp. Ltd. 

Easter Holidays - No Significant Capital Flows Into Gold

GoldCore offices are closed this Friday and Monday, March 29th and April 1st, for the Irish national holidays of Easter.  

Today’s AM fix was USD 1,602.50, EUR 1,253.13 and GBP 1,057.41 per ounce. Yesterday’s AM fix was USD 1,591.00, EUR 1,243.75 and GBP 1,052.39 per ounce.

Gold Survey

Solid Majority Of Survey Participants See Higher Gold Prices Next Week
Friday March 22, 2013 12:08 PM

Gold prices are expected to climb next week, with expectations that the yellow metal may catch a bid as the situation regarding a possible bailout for Cyprus could attract safe-haven buying.

In the Kitco News Gold Survey, out of 33 participants, 28 responded this week. Of those 28 participants, 22 see prices up, while four see prices down, and two are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

INTERVIEW: 'Next Three Years Are Going To Be Exciting' – Silver Wheaton CEO

By Alex Létourneau of Kitco News

Friday March 22, 2013 3:11 PM

(Kitco News) - Fresh off reporting strong fourth-quarter and full-year results, the future looks bright for silver stream company Silver Wheaton Corp. (TSX, NYSE: SLW), according to the company’s president and chief executive officer.

“The next three years are going to be incredibly exciting for our company,” said Randy Smallwood in a telephone interview with Kitco News. “We’ve got so much organic growth that’s going to be coming on stream.”

Just Bought Your First Gold, Then What?

I get many responses from friends and families on what to do with the gold they just bought. Keep it at home? Oh it’s too risky.

 

Ok, imagine this – you’re planning to invest in a long-term, high-return, low-risk market and you chose properties. In property investment, you have options to put your money in securities i.e.  real estate unit trust, amanah saham hartanah, property company stocks etc. or you can buy physical property – house, or a shop lot etc.