David Franklin
With the Indian rupee continuing to plumb new lows against the US dollar, it is clear that the Reserve Bank of India (RBI) is losing its war on gold. Our Chart of the Week shows the gold price in rupee hitting a new high yesterday.
The gold price has exploded in India
Once again the perma-bulls are euphoric over the recent rallies put in by gold, silver and the precious metals mining sector, however, the question still remains; is this the real deal or another false dawn? We can look back to early July when gold traded at around $1200/oz and say there it is; the bottom is in, as many of our peers have already done, but is it?
Published Thursday, Aug. 15 2013, 6:21 AM EDT
Last updated Thursday, Aug. 15 2013, 12:28 PM EDT
Last week at Inside the Market, we invited you to submit questions for Eric Sprott. We received over 100 questions.
We posed a selection of these to Mr. Sprott this week and present the questions and answers below. As you’ll read, the CEO of Sprott Asset Management is only becoming more entrenched in his bullish views, calling for a $2,400 (U.S.) gold price within a year
The German Finance Ministry ruled that Bitcoin is a “unit of account”, and therefore 'mining' them is a form of “money creation”.
This means that, like stocks or shares, any profit
By The Hard Assets Alliance Team
The Federal Reserve has put pressure on precious-metals markets over the last few months. Although gold has been up since April, any signal that the Fed will reduce its bond-buying program could further weigh on gold and other precious metals. Silver has also been under pressure from central banks and has also felt the heat from falling industrial demand.
On the other hand, platinum and palladium could be poised for resurgence. Rising mining costs as a result of wage increases, regulations, and political risks in South Africa – which accounts for 80% of world platinum production and is also the second-largest palladium producer – may cause a fall in production in coming months, which is a bullish sign for spot platinum prices.
Though a pullback by the Federal Reserve (and thus a stronger US dollar) could weigh on all of our metals in the short run, our long-term outlook remains intact.
We previously warned
The following is a missive that we received from Jim Sinclair who is the host of a web site called Jim Sinclair's MineSet. The above link will take to his site and his updates via email are free, so you have nothing to lose by signing up for them.
Here we go:
What a mess Western inspired
(Reuters) - The number of Americans filing new claims for jobless benefits fell to a near six-year low last week and consumer prices rose broadly in July, which could draw the Federal Reserve closer to trimming its massive bond-buying program.
The government reports on Thursday suggested an acceleration in job growth in early August and hinted at pockets of pricing power in the sluggish economy, which could ease concerns among some Fed officials that inflation was too low
The chart below paints a sorry picture for precious bugs with the US dollar just managing to stay in positive territory as losses mount for gold, silver and the mining sector. In broad terms the US Dollar is up 2%, Gold is down 22%, Silver is down 32% and the miners represented here by the HUI are down 45%. All stomach churning stuff for perma bulls as the mining sector now has to generate gains of around 100% in order to get back to where they were at the start of the year. This is not impossible but it will take a monumental effort to achieve such a recovery.
As investors we are all looking for that signal, indicator, green light or a reading from the tea leaves that tells us
Kitco News’ Daniela Cambone interviews Export Development Canada’s Chief Economist and Vice President Peter Hall on the current state of the metals markets. Back in May, Hall forecasted a modest decline in commodity prices and said that any price spikes would be short-lived. Hall said that gold in the quadruple-digits zone was in an ‘emergency zone’ because people lacked confidence in the world financial system
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
Wednesday, August 28, 2013 at 06:21PM