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March 16, 2010 / Hal (GT)

Monday Must Reads on the Gold and Silver Markets


Okay. I’m coming in here quick and fast. Been a long day but there were a few things that came across my virtual desk that I found interesting when it comes to the gold and silver markets and the financial markets in general. I’ll pass them on to you and let you draw you’re own conclusions because I’m not smart enough to make your conclusions for you.

First a look at Gold and Silver as I type reveals them trading after hours at $1,110.50 and $17.21 respectively. Gold has been steady pretty much all day. Not the case for silver which showed a little more action.

The first item I present you with is the one that I think is a great read from Jeff Nielson titled, “Gold: The End of “Seasons”

However, these former patterns have been altered dramatically – in less than two years. The destruction of this previous trend in the precious metals sector began with the Wall Street-induced, global economic meltdown in the fall of 2008. At the time of the year where gold prices normally surged, instead they temporarily collapsed – and then immediately boomeranged, as the plunge in the price of gold sparked thelargest spike in retail investment demand in nearly thirty years.

That “spike”, and the resultant price-increase, caused the collapse in gold demand from India. In only a period of a few months, India went from being the world’s largest importer of gold to actually exportingsmall amounts of “scrap” gold in early 2009. Indian gold-buyers have long had a reputation for being among the most price-conscious buyers in the world, and when the price of gold surged above $900/oz, these buyers (mistakenly) perceived the price of gold to be “expensive”.

This next item is knock down fight between Liesman or Santelli on CNBC which I found thanks to Peter Grandich of Agoracom who has renewed his $100,000.00 challenge:

Wasn’t that fun!?

Moving on, CNN Money has a must read:

Welcome to the United States of Iceland

NEW YORK (Fortune) — It’s time to start paying attention to the financial sinkhole that Iceland is trying to climb out of — the view from inside of it is eerily similar to our own.

An Icelandic savings bank, Icesave, had attracted billions in deposits from hundreds of thousands of British and Dutch citizens, due to the phenomenally high interest rates it offered. Icesave collapsed in 2008, for much the same reason Lehman Brothers, WaMu, and hundreds of local savings banks did: its bankers used their cash to make complicated, bad, leveraged investments, mostly on real estate.

Finally, check out Ted Butler on the silver manipulation:

Answering the Skeptics

Recently, I was contacted by a reporter for the Financial Times of London. He was looking to write a story about the CFTC’s upcoming hearing on precious metals. I could tell in my conversations with him that he was skeptical about my claims of a downward manipulation in the price of silver. As a result, the story he wrote reflected his skepticism, which was rooted in how could such a manipulation exist for as long as I alleged and how could silver be manipulated if it doubled in price over the past five years?

I understand the reporter’s skepticism and recognize that it is prevalent among those who have not taken the time to study the circumstances in silver. It’s not unusual for people to hold strong opinions about issues they are not well-versed on. I discovered long ago that silver is such an issue.

Okay. Time for me to bolt for some late dinner.

Until next time.

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