Auguries - January 19, 2013
The Circle Game
Kevin Michael Grace
The Mark of the Chief: Round and round and round.
Gold was up (at press time) $11.80 (+0.7%) for the week to $1,684.60, and silver was up $1.11 (+3.6%) to $31.90. According to GoldCore, “Some investors see the recent selloff as overdone and are buying gold on the dip in anticipation of further gains in 2013…. The…higher weekly close today may embolden bulls who are expected to come back into the market.”
The big news in gold this week was the announcement that Germany is to begin repatriating its gold from Paris and New York. Ambrose Evans-Pritchard calls it a “watershed moment,” explaining that “The move marks an extraordinary breakdown in trust between leading central banks and has set off ferment among gold enthusiasts.”
For all the ferment, Germany plans to retrieve only 674 tons, with 50% of its hoard remaining in New York and London. At Seeking Alpha January 17, Tom Luongo asks why there is to be “so little” from New York and answers, “Most of the gold in the Fed’s vaults has been rehypothecated, and everyone knows it.”...
Read the rest of this article about gold prices here.