Gold News Feb 10, 2014

Feb 10th, 2014 Newsletter

Feb 10th, 2014 Newsletter

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Here are the world’s top stories on the outlook for Gold and Silver prices and related economic indicators for the week ending February 10, 2014.


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Damion Lupo
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QE (Quantitative Easing)

  • Friday’s weak jobs report was bullish for gold and silver. The state of the economy calls into question whether the Fed will be able to stick to its tight QE schedule.
  • Fed’s QE policy “will inevitably lead to recession, bailouts and lots of pain” according to Albert Edwards of Societe Generale.
  • Any hint that in upcoming testimony that Yellen may be suspending or curtailing the QE in the near future will support the gold market, says George Gero, VP of RBC Capital Markets Global Futures Forbes
  • Darryl Schoon, author of Why Gold and Why Gold Now, presents detailed financial charts comparing the current QE policy with currency fixes in the 1920’s. QE The Killer Solution on


Global Politics

  • China’s demand for gold jewelry up 43 percent and gold bullion is up 57 percent. Gold consumption now tops 1,000 tonnes for the first time. Reuters
  • Bank of Canada reveals fears of disinflation are a greater danger to world’s financial position than inflation. European Central Bank President Mario Draghi echoed these concerns, saying the EU would move quickly to counter falling consumer prices.
  • Bank of England responds to economic surprises such as lower than expected inflation and Video stronger than expected growth rates Video interview with Kevin Daly, chief U.K. economist at Goldman Sachs
  • Gold is clearly undervalued as high costs are causing the shut down of several gold mines in South Africa. Production declines will be evident with a year. Monex


Modifications in Central Bank policy

  • The Evans Rule Controversy: In December of 2012, the Central Bank promised to keep rates near zero “as long as the unemployment rate remains above 6.5 percent.” The latest jobs report puts the US within a tenth of a percent from that threshold.
  • The Treasury announced that on Feb. 27, just over two weeks from now, they will have no more “extraordinary measures” to use in order to stay beneath the federally mandated borrowing limit. Bloomberg


Course Corrections at the Federal Reserve

  • Details on Fed Policy changes under new Chairperson will be made clear this Tuesday when Yellen debuts as the new chief in front of House Financial Services Committee. Sydney Morning Herald
  • The Phillips Curve fallacy at the heart of Federal Reserve policy gives them authority without accountability. A manipulated dollar is not the same as guaranteed dollar. Forbes


Impacts from Stock & Bond Market Activity

  • Peter Schiff with Euro Pacific Capital predicts “huge increase in price of gold” as soon as the market comes to terms with the fact that there is no recovery and the Fed has no exit strategy. Get Ready for Gold Moonshot Peter Schiff , video interview on
  • ETF’s (exchange traded funds) represent a bubble hiding in plain sight and could be devastating, especially if your portfolio is low on liquidity. Seeking Alpha
  • Gold and silver continue to extend their longest rallies since summer of 2013 as the S&P fluctuates. Bloomberg


Gold & Silver Markets

  • Gold rallied slightly on weak jobs report in the US. The big news was in silver stocks with a strong rally. – Ed Steer’s Gold and Silver Daily
  • Fred Hickey, editor of High Tech Strategist, compares gold prices with a similar economic landscape in the 1970’s when gold prices dipped then spiked eight times their value. “In a money-printing environment, the secular bull market in gold isn’t over.’’ Monex
  • Shares for gold and silver mining will see a very active week as six stocks from the Philadelphia Gold and Silver Index, which account for almost a third of its value will make earnings announcements, predicted David Krein from NASDAQ. MarketWatch
  • Investors should be building and maintaining solid core positions with quality mining companies because the suppression of gold and silver prices are forcing these companies into to iron grip of banks. King World News


Upcoming reports to watch this week from

  • On Monday – Japan’s Consumer Confidence and the Economy Watchers Survey. Also the Eurozone releases the results of its Sentix Indicator
  • On Tuesday Watch the US Wholesale Inventories for a preview of consumer confidence in the coming months.
  • On Wednesday The Eurozone’s equivalent will be out with its Industrial Production report. Updates on the US Budget Deficit are also expected to move the markets.
  • On Thursday Huge day for the US economy reports with Jobless Claims, Retail Sales and a breakdown on where Business Inventories are headed.
  • Friday The weekend begins with initial numbers in the derivation of US capital growth rates, including the Import Price Index and Capacity Utilization numbers that reveal overall productivity.