‘Dumb’ Metals Sell-Off Spells ‘Opportunity’

“Based on the Fed’s track record of predicting the future, this has to have been one of the dumbest reasons to sell gold and silver in recent years,” declares Tim Iacono, about the sell-off following last week’s release of December’s FOMC minutes, which suggested a possible end or pullback of QE in 2013.

Advising precious metals investors to “watch what the Fed does, not what the Fed says,” he points out that “just a few years ago, the Fed spent inordinate amounts of meeting time discussing their ‘exit strategy’ – and then they went on to buy a couple trillion dollars worth of mortgage-backed securities and government debt with newly printed money.”

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And he predicts that “in the fullness of time, it will be realized that futures market selling simply provided another opportunity for long-term investors and central banks to increase their precious metals holdings at better prices.”

News & Views

Bloomberg/Reuters:  Gold drops for third straight session on Fed’s stimulus signals; Gold falls 0.6%, Fed asset purchases in focus; silver off 0.5%

USA Gold/CNBC:  Gold remains defensive after Fed tone change

Hard Assets Investor/Frank Holmes:  Fed balance growing to $2.9 trillion supports gold & silver; In 2013, resolve to follow the money

BullionVault:  Shanghai gold trading jumps as US gold derivatives shrink to 3-year low

SafeHaven:  Clive Maund – Market updates for gold and silver

Mineweb:  Mineweb readers pare average gold price forecasts for 2013; Gold; short-term, long-term and the Washington Effect

KWN:  Special U.S. dollar-gold chart series; Louise Yamada – Incredibly important chart & commentary on gold  

Reuters:  American Eagle gold coin 2012 sales down but outlook bright

Bill Fleckenstein/CNBC:   Brand-new year, same old saga; Analysts – Gold can still break through $2,000

Jesse’s Café Américain:  The legacy of the Fed and the U.S. experiment with fiat currency in one chart

GATA:  Fed ‘trying their damnedest’ to hold gold down but metal will win soon, Sprott says; Jim Sinclair: Campaign to discredit gold indicates worst desperation yet

Naked Capitalism:  SEC gives JP Morgan and other big banks license to manipulate commodities

Zero Hedge:  Gold: It’s for more than just wealth preservation

This entry was posted on Monday, January 7th, 2013 at 11:40 pm and is filed under CFTC, Federal Reserve, General Economy, Gold, Goldman Sachs, JPMorgan, Monetary Policy, Short Sellers, Wall Street. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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