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When it comes to silver, Americans are leading the world in hedging their bets in the shiny metal. This year, Americans have purchased one out of every three ounces of physical silver bar and coin compared to the rest of the world. And, that’s not all. If we also consider total Silver ETF demand, the U.S. based SLV ETF has seen its inventories increase by over 200 million oz in 2020.

Thus, Americans have purchased nearly half of all the global physical and ETF silver investment this year. According to the Metals Focus Silver Interim Report for the Silver Institute, the U.S. is projected to see a 62% increase in physical silver bar and coin demand this year over 2019. Based on the 2020 World Silver Survey data, total U.S. physical silver demand was 48.2 million oz (Moz) last year. Simple math puts the total estimate for U.S. silver bar and coin demand at 78 Moz in 2020. With global physical silver investment to be 237 Moz this year, the U.S. accounts for one-third of the total.

Furthermore, the U.S. based iShares SLV ETF, saw its inventories increase more than 200 Moz this year, accounting for two-thirds of the total 300 Moz growth in global silver ETFs.

Now, I don’t know if all that silver is located in the SLV ETF vaults, but it is still an excellent indicator revealing the increasing need for Americans to place more of their wealth into silver. I believe this is only the beginning of a rising trend that will continue over the following years.

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Do Not Trust Governments With the Control of Money

November 19, 2020

DO NOT TRUST GOVERNMENTS WITH THE CONTROL OF MONEY

If there one thing that is fairly certain in this life – besides the seeming inescapability of death and taxes – is that once someone is appointed to almost any position in the political and bureaucratic structures of a government they soon discover how important and essential is the organization of which they are a part for the well-being of the nation. The country could not exist without it, along with its increasing budget and expanded authority. This applies to the Federal Reserve, America’s central bank, no less than other parts of government.

The news media has reported that the apparently unlikely appointment of Dr. Judy Shelton to the Federal Reserve Board of Governors probably will be successfully maneuvered through the full Senate confirmation process. Shelton would then sit on the Federal Reserve Board for a 14-year term. Hers has been one of the more controversial nominations to the Fed in recent years, with critics fervently expressing their negative views of her.

For instance, Tony Fratto, a former Treasury official and deputy press secretary under George W. Bush, was recently quoted as saying that Shelton’s appointment would be “a discredit to the Senate and the Fed. It screams. Nothing at all is serious. Not us. Not you. Not them.”

Mainstream Economists Against Anyone for Gold

Back in August of this year, over one hundred academic and business economists issued an open letter to members of the U.S. Senate calling for rejection of her nomination to the Fed. Among those who signed were some economics Nobel Laureates, including Robert Lucas and Joseph Stiglitz. They insisted on her unfitness for such an appointment. Why? They said: “She has advocated a return to the gold standard; she has questioned the need for federal deposit insurance; she has even questioned the need for a central bank at all.”

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The monetary logic for gold and silver

November 14, 2020

The monetary logic for gold and silver

A considered reflection of current events leads to only one conclusion, and that is accelerating inflation of the dollar’s money supply is firmly on the path to destroying the dollar’s purchasing power — completely.

This article looks at the theoretical and empirical evidence from previous fiat money collapses in order to impart the knowledge necessary for individuals to seek early protection from an annihilation of fiat currencies. It assesses the likely speed of the collapse of fiat money and debates the future of money in a post-fiat world, in which the likely successors are metallic money — gold and silver— and some would say cryptocurrencies.

Early action to lessen the impact of a failure of the fiat regime requires an understanding of the role of money in order to decide what will be the future money when fiat dies. Will we be pricing goods and services in gold or a cryptocurrency? Will gold be priced in bitcoin or bitcoin priced in gold? And if bitcoin is priced in gold, will its function of a store of value still exist?

Introduction

This week saw the news that a vaccine had been found to combat the coronavirus. At least it offers the prospect of humanity ridding itself of the virus in due course, but it will not be enough to rescue the global economy from its deeper problems. Monetary inflation is therefore far from running its course.

The reaction in financial markets to the vaccine news was contradictory: equity markets rallied strongly ignoring rapidly deteriorating fundamentals, and gold slumped on a minor recovery in the dollar’s trade weighted index. Rather than blindly accepting the reasons for outcomes put forward by the financial press we must accept that during these inflationary times that markets are not functioning efficiently.

…click on the above link to read the rest of the article…

The Main Driver Of The Global Gold Market Totally Reversed This Year

November 3, 2020

The Main Driver Of The Global Gold Market Totally Reversed This Year

Something quite interesting took place in the gold market this year that hasn’t happened before. Let’s just say the global gold market’s main driver has totally reversed and is setting a new precedent. However, this is just the beginning as the world hasn’t quite figured out how bad the situation will become as the global economy continues to disintegrate.

So, what’s the main driver of the gold market this year?? Well, I can tell you what it isn’t… it’s not gold jewelry demand. World gold jewelry demand has been the leading driver of the gold market for decades. The chart below shows how much more annual gold jewelry demand has been versus investment demand over the past decade.

If we add up all the annual totals for the 10-year period, there were 22,734 metric tons of gold jewelry demand (731 million oz) versus 13,015 metric tons of net gold investment demand (418 million oz). And, if we go back to 2000 or 2001, the ratio was much worse. According to the World Gold Council Gold Demand Trends data, there was a total of 166 metric tons of retail gold investment in 2000 compared to 3,204 metric tons of gold jewelry demand. So, the main driver for the gold market before the 2008-2009 financial crisis was jewelry demand.

However, this all changed in 2020 as the pandemic forced the Fed and Central Banks to do what they do best… PROP UP THE ECONOMY & FINANCIAL SYSTEM, but on steroids. This has a profound impact on global gold investment, especially in the west.

As we can see in the chart below, global gold jewelry demand reversed with investment demand as being the main driver of the gold market.

…click on the above link to read the rest of the article…

Gold and Crypto: Is This How Charts Look Before A Monetary Collapse?

October 24, 2020

Gold and Crypto: Is This How Charts Look Before A Monetary Collapse?

It is the the massive debt. It cannot be serviced. It will collapse the whole system.

The gold, silver and cryptocurrencies charts are showing signs of going parabolic. The US dollar is close to confirming a massive breakdown.

Gold, silver and cryptocurrencies all provide “crisis value” by simply being an acceptable debt-based fiat alternative. It is only later in this crisis that we will see a divergence between cryptocurrency and precious metals.

For now, they are likely to move higher together.

Gold has recently made new all-time highs, and seems ready to go higher after a decent consolidation. The importance of the 2011 all-time high can be seen on these charts:

I have marked two fractals (ABC). Both fractals start from the Dow/Gold ratio peaks (1966 and 1999). For these to continue the similarity, the level ($1920) at A and C needs to be surpassed on the current fractal.

We’ve already seen the breakout, now price has just been consolidating around that level. It is very close to blasting higher.

From a cycle analysis point of view, we are right at a point where a sustained multi-year gold rally is possible:

The top chart is gold from about 1997 to 2020 (current fractal), and the bottom chart is gold from about 1965 to 1980 (70s fractals). If the current fractal continues to follow the 70s fractal, then we could see gold continue to multiples of its current all-time high.

Currently, we are just after, or close to, a major Dow peak in the economic cycle. Again, you can see that the 2011 peak is an important indicator to confirm these fractals as relevant. It could also be considered a marker after which the chart is likely to go parabolic.

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U.S. MINT SEPTEMBER SALES: 134 Times More Silver Eagles Sold Than Gold Eagles

October 7, 2020

U.S. MINT SEPTEMBER SALES: 134 Times More Silver Eagles Sold Than Gold Eagles

With the enormous investor demand for Silver Eagles, the U.S. Mint sold nearly three million official coins in September. While this wasn’t the highest monthly amount this year, it was a record when we compare the Silver Eagle sales to Gold Eagles. And, it seems that U.S. citizens are purchasing the majority of the Silver Eagles as Americans prefer silver bullion coins (and rounds) over bars.

For those who might be new to the precious metals market, the official coins such as Silver Eagles, Maples, Philharmonics, Krugerrands, Kangaroos, Britannias, Pandas, and Libertads are known as “COINS.” In contrast, private rounds such as Buffalos, Walking Liberty, etc are labeled as “ROUNDS.”

While some investors prefer the Silver Maples because they have a better fineness (99.99% silver) versus the Silver Eagles (99.9% silver), there has been one heck of a lot more Silver Eagles sold and held in the market than Maples. I don’t have a total Silver Maple Leaf coin figure because the Royal Canadian Mint stopped providing updates since 2015 on the amount of Gold & Silver Maples sold.

Regardless, here is an updated chart of the total Silver Eagles sold to date since 1986.

A total of 556 million Silver Eagles and 23.8 million Gold Eagles were sold from 1986 to September 2020. That’s a half-billion oz of Silver Eagles sold since the U.S. Mint began producing them in 1986. The ratio of total Silver Eagles to Gold Eagles over the 35 years was 23/1. However, if we look at the ratio for September this year, it’s considerably higher.

The U.S. Mint sold 2,958,500 Silver Eagles and 22,000 oz of Gold Eagles during September. Thus, the ratio was 134 times more Silver Eagles than Gold Eagles. The average ratio over the 2016-2019 period was 64/1.

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Institutional Demand Will Drive Gold Ever Higher

September 18, 2020

INSTITUTIONAL DEMAND WILL DRIVE GOLD EVER HIGHER

Embrace uncertainty has long been one of my personal mottos. Because from this moment on, everything is uncertain whether it is your personal health, the stock market or the economy. Sure, we work with probabilities and the most likely is that the sun will rise tomorrow again and that I won’t die today. But we are now at a point in history when trend extrapolation is going to be not only precarious but also both foolish and impossible.

END OF A MAJOR CYCLE

That we are at the end of a major economic and social cycle is totally clear in my mind. But cycles don’t end overnight, if the world isn’t hit by a massive meteorite or nuclear bomb. Whether we are at the end of a 300 year cycle or a 2,000 year cycle, only future historians can tell the world. What is clear, at least to me, is that the end of this cycle started in 1971 when Nixon closed the gold window. Since then global debt has gone up exponentially and now we are in the very final stage of the cycle. This end of the end, that we are now in, was first evidenced by gold turning up at the beginning of this century.

This significant trend change in gold that started 20 years ago was a clear indicator that we are now seeing the end of the fiat money system. Even though manipulated through a corrupt paper market, gold still reveals the deceitful actions of governments and central banks. There is no better evidence than the fall of fiat in this century.

CENTRAL BANKS ARE PANICKING

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U.S. Mint Silver & Gold Eagle Sales Explode In August

September 12, 2020

U.S. Mint Silver & Gold Eagle Sales Explode In August

With the recent update from the U.S. Mint, Silver and Gold Eagle sales surged in August. While Gold Eagle sales continue even higher during August, the real explosion took place in the Silver Eagle figures. After the U.S. Mint adapted its fabrication processes to incorporate protections for employees due to the virus, production and sales of Silver and Gold Eagles took off again in August.

And, when I say that Silver Eagle sales EXPLODED in August, I wasn’t exaggerating. In June, the U.S. Mint sold a bit more than one million Silver Eagles, but this more than quadrupled in August. Total Silver Eagle sales in August were 4,477,000, higher than the total sales from August to December 2019 at 3,591,500.

In just one month, the U.S. Mint sold more Silver Eagles than during the last five months of 2019. That is an impressive figure. We finally see monthly sales figures similar to the monthly sales figures that took place during 2015 when the U.S. Mint sold 47 million Silver Eagles.

Already, Silver Eagle sales for January to September (first ten days) 2020 are higher at 19.1 million versus 14.8 million for full-year 2019.

If Silver Eagle sales continue to be healthy for the rest of the year, and the U.S. Mint can keep up with demand, we could easily see a total of 25-28 million sold for the entire year. Furthermore, it seems as of premiums on Silver Eagles are finally coming down to a more reasonable level for investors. Interestingly, investors are willing to pay these high premiums for Silver Eagles to acquire these U.S. Government official silver coins.

Now, if we look at the Gold Eagle sales for August, there were also quite impressive at 121,000 oz. The U.S. Mint sold 121,000 oz of Gold Eagles in August compared to 152,000 oz for full-year 2019.

…click on the above link to read the rest of the article…

Another Big Month For The Silver Price?

September 8, 2020

Another Big Month For The Silver Price?

Precious metals investors are wondering if the Silver Rally will continue in September. After the silver price reached nearly $30 in August, it has been consolidating lower over the past few weeks. However, silver tried to surpass the $29 level but fell last week along with the broader markets. So, the trend for silver in September may rely upon the broader markets.

I discussed this in my newest YouTube video update, Another Big Month For The Silver Price? In the video, I explain some of the forces that will impact the silver price in September.

Furthermore, the $26 level on silver’s weekly chart is a significant support level going back ten years. As you can see, once silver broke above the $26 level in late 2010, it remained above it until 2013.

We need to keep an eye on the broader markets as they will be one of the larger drivers of the gold and silver prices in September. However, at some point, I believe the precious metals will DISCONNECT from the broader markets as investors move into gold and silver to protect wealth.

If you have not seen this article, it’s worth a read as Peru’s silver production declined in July, suggesting that the virus is still impacting the mining industry in the country.

With Peru’s silver production declining in July, this could cause more issues in the silver market as investors continue to move into the shiny metal.

SILVER IS THE BETTER INVESTMENT: Massive Financial Bubbles Everywhere

September 1, 2020

SILVER IS THE BETTER INVESTMENT: Massive Financial Bubbles Everywhere

The market will finally realize that silver is a better investment when the world’s financial bubbles start popping everywhere. This will cause the silver price to reach levels that will make the past $50 record seem relatively insignificant. It’s not a matter of if, it’s only a matter of when.

I discussed this in my newest video update, SILVER THE BETTER INVESTMENT: Massive Bubbles Everywhere. In the video, I explain why trading tomorrow, on the last day in August, may set a significant trend for silver heading into September. If silver can close above $28.50+, it will set up a much more positive technical move for the metal to continue towards $30+.

In the video, I also show how the silver price had three nice BREAKOUTS with another possible BREAKOUT at the $28 level. Again, trading in the U.S. Markets tomorrow will likely set the trend for September.

This Analyst Says Gold’s Pullback is Proof that Higher Prices Are to Come

August 29, 2020

This Analyst Says Gold’s Pullback is Proof that Higher Prices Are to Come

Precious Metals Soaring

This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: Gold has more room to run, why central banks have been buying gold for over a decade, and two massive gold nuggets worth $250,000 found in Australia.

Standard Chartered: Gold has more to show this year despite hitting a new all-time high

For a steady asset such as gold, a rapid breach of its decade-old all-time high is quite a showing. Yet, according to multiple analysts, the metal could stagger market watchers some more by the end of the year. Since blazing past $2,000, gold has pulled back as some expected, yet seems unwilling to go below the $1,940 level if the previous two weeks are any indicator.

Standard Chartered Private Bank’s Manpreet Gill attributes gold’s correction to a slight recovery in the 10-year Treasury yield amid an increase in risk sentiment. If this is indeed the reason for the pullback, the development is actually positive for gold, as the general consensus is that sovereign bond yields are on a firm downwards spiral, with no central bank showing any inclination towards elevating its benchmark rate.

“We have quite a bit of one-sided positioning in gold and I think, you know, that’s actually unwound quite quickly. A lot of our proprietary indicators are telling us exactly that,” said Gill, while acknowledging that central bankers are favoring a cap on their bond yields.

In a recent note, Fitch Solutions’ analysts likewise said that gold should keep moving up for the rest of the year and pass its August high in doing so in the absence of any notable headwinds. “We expect gold prices to remain supported in the coming months with rising geopolitical tensions and an uneven and slow global economic recovery,” said the team in the note.

…click on the above link to read the rest of the article…

Market Friday: Is This the End of COMEX Paper Gold?

August 15, 2020

Market Friday: Is This the End of COMEX Paper Gold?

There’s been a lot of speculation in the Gold community about what’s happening in the market this year. 2020 has been wracked with unprecedented gyrations in the gold market.

It’s also seen gold finally breach the $2000 level and, this week after a nasty correction, is still holding onto most of its recent gains.

This rally in gold and the persistent supply tightness which has kept gold futures in contango for most of the year are indicators that something has fundamentally shifted in the gold market.

And now, the question on a lot of people’s minds is whether we’ll see the end of the fiction of the paper gold market as epitomized by the futures market on the COMEX.

Alistair Macleod’s recent article detailed the gyrations of the gold futures market explains why he felt the so-called bullion banks who work with the central banks to keep gold control have, in fact, lost control.

His detailed the use of open interest on the COMEX to push and pull the price of gold and how the market changed after March 23rd when the futures premiums blew out to a high of $70 over the cash price in the forex markets.

Using mass liquidation to crater the price of gold and force thinly-margined, weak longs off their positions is a classic COMEX raid on the gold and silver markets.

And if you look closely at this chart you’ll see a few moments where dramatic drops in open interest didn’t result in big price drops. So, either longs ponied up the cash to stay in their positions or the buying into those ‘raids’ so intense that attempt failed to break the psychology of the gold market.

…click on the above link to read the rest of the article…

Massive Surge In U.S. Gold Imports Signals BIG TROUBLE Ahead For The Financial System

August 14, 2020

Massive Surge In U.S. Gold Imports Signals BIG TROUBLE Ahead For The Financial System

The U.S. imported a record amount of gold bullion in April during the global contagion and shutdown of many economies. The United States imported more gold in April than it did during all of last year. A lot of the gold imported into the U.S. was due to delivery issues, as many of the large gold refineries were shut down.

While the huge surge in U.S. gold bullion imports during April was mainly due to supply disruptions, it’s an IMPORTANT SIGNAL that all is not well in the Global Financial System. The panic to get more gold to the U.S. exchanges suggests that there is way too much paper gold leverage in the system.

The highly leveraged gold trading system has worked fine for decades due to an important factor not considered by most in the precious metals community… and that’s rising global oil production. Let me explain. World GDP growth is tied to global oil production growth… PERIOD. While a few other analysts and I have made this point, Jean-Marc Jancovici explained this to a large group of the OECD.

Total world oil consumption on a three-year average corresponding closely to total world GDP per capita on a three-year average. While investors may deny this relationship, do so at your peril.

Because the world has been able to add 1-2% of new global oil production on average each year, except for the down-turns, the highly leveraged Financial Ponzi Scheme can continue to grow and expand. However, when global oil production stops increasing on an annual basis, then global GDP growth is DEAD for good. And, I mean it.

…click on the above link to read the rest of the article…

The Dollar’s Ongoing Fall From Grace Will Soon Catapult Precious Metals to Even Greater Heights

August 10, 2020

The Dollar’s Ongoing Fall From Grace Will Soon Catapult Precious Metals to Even Greater Heights

I have been telling readers to put savings into gold and silver for well over 14 years now, and in that time, precious metals have had spectacular rallies as well as intense corrections. Weak hands have been selling and strong hands have been buying and holding for some time now. We have done this with the expectation of something far more than just a parabolic event; some of us have been predicting an economic crisis the likes of which have not been seen in almost a century.

Specifically, in 2018, I warned that there was a dramatic shift in Federal Reserve policy that would puncture the massive debt bubble they had been building since 2008. The crash of the “Everything Bubble” would inevitably lead to a spike in metals prices.

In an article published in January 2018, I warned that the Fed would increase the speed of its balance sheet cuts and interest rate hikes and that this would trigger an initial implosion in the U.S debt bubble and the dollar, along with flirtations with a stock market plunge. By the end of 2018, we saw exactly that.

By mid-2019, the Fed had reversed its fiscal tightening policies, but of course, it was too late; Pandora’s box had already been opened and economic instability was increasing. I continue to believe that this action on the part of the Fed was absolutely deliberate and that they knew they were initiating the beginnings of a crisis. The minutes of the October 2012 Federal Open Market Committee even reveal that Jerome Powell openly discussed what would happen, years before he became the Fed Chair.

…click on the above link to read the rest of the article…

WE HAVEN’T SEEN ANYTHING YET: The Coming Tiny Silver Market Explosion

August 6, 2020

WE HAVEN’T SEEN ANYTHING YET: The Coming Tiny Silver Market Explosion

Even though the silver price has surged over the past two months, we haven’t seen anything yet. Step aside, Tesla. Watch what happens when investors begin to understand the true meaning of “STORE OF VALUE.” I can assure you; Tesla is not a store of value but rather a perfect example of the 2000 TECH-BUBBLE 2.0.

Unfortunately, the glitz, glamor, and allure of Technology will only last as long as the world is capable of supplying lots of cheap and available oil. Technology doesn’t really solve problems; it just consumes one hell of a lot more energy with the illusion of a FIX. Tesla isn’t solving our problem with fossil fuel addiction. Without the burning of one hell of a lot of oil, natural gas, and coal, Elon Musk wouldn’t be able to roll just one of his Model 3 Electric vehicles off the assembly line. This is the BAD JOKE that most “Renewable Energy Aficionados” would like you to ignore.

Again, let me clarify the term “Renewable Energy.” The only thing renewable about Solar & Wind Power is that the sun will continue to shine, and the wind will continue to blow. Thus, they are renewable and free. However, the highly sophisticated Technology that produces wind and solar power units is NOT RENEWABLE. We can prove this by the thousands of tons (soon to be hundred thousand tons) of wind blade waste that will be disposed of in landfills across the world.

If someone can honestly say that the dumping of thousands of tons of wind blade waste is renewable, then maybe I don’t understand what the term “Renewable” really means.

…click on the above link to read the rest of the article…

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