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U.S. Mint Rations Bullion Coins – Why Aren’t Prices Rising, Too?

February 17, 2021

U.S. Mint Rations Bullion Coins – Why Aren’t Prices Rising, Too?

U.S. Mint Rations Bullion Coins – Why Aren't Prices Rising, Too?

This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: The disconnect between gold and silver bullion demand and price, we could be months away from $50 silver, and trove of antique Roman silver coins unearthed in Turkey.

Why bullion prices don’t seem to be in line with demand

Despite record demand for gold and silver bullion coins month after month, the prices of both metals continue to linger within limited ranges. Gold even pulled back to just above $1,800 during Friday’s trading session. So what’s going on? Why isn’t the clearly-demonstrated demand driving prices higher?

U.S. Mint director Ed Moy, whose tenure stretched from 2006 to 2011, recognizes today’s situation and draws many parallels to the start of 2008:

The last time demand was this high was during the [2008-2009] financial crisis. People were panicking and buying into gold, and prices were shooting up. Then the government started injecting both fiscal and monetary stimulus, and you saw gold correct down maybe 20-30%. And then, over the next three years, gold began to climb until it set a new record of $1,925 in 2011. Afterward, gold didn’t decline until it became clear that the economic recovery was going to be slow, which eliminated the uncertainty. The Fed also had the time to mop up all the excess liquidity before it caused inflation.

The former director explained that, besides overloaded mints and supply chain disruptions, there are several other factors that could play an interesting role in shaping up gold’s price over the coming months and years. Moy believes that perhaps the biggest reason for the disconnection between price and demand lies in Wall Street’s shorting of the metals.

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

 

U.S. Mint Sold Out of Gold & Silver Coins

February 10, 2021

U.S. Mint Sold Out of Gold & Silver Coins

U.S. Mint sold out of gold and silver coins

REUTERS/Shannon Stapleton

This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: U.S. Mint can’t keep pace with demand again, Goldman chief calls silver a supercharged version of gold, and amateur prospector unearths a long-lost golden treasure from Medieval times.

U.S. Mint runs out of gold and silver coins

Just when we’d hoped the U.S. Mint might’ve worked its way through the pandemic-driven backlog of gold and silver coins, a new surge in demand worsened supply shortages. Last year, the U.S. Mint saw a 258% increase in purchase of gold coins and a 28% increase in silver coins, with heavy buying continuing into 2021. They probably didn’t plan for what happened next…

On the heels of Reddit’s wallstreetbets triumphant (if brief) GameStop frenzy, the day traders searched for a new target. Some have settled on silver. Amid claims that silver’s price should be closer to $1,000 than $25, day traders have flocked to both gold and silver. This made the ongoing supply crunch even worse.

While silver’s price is still trading around $27, the supply dynamics tell a different tale. The U.S. Mint sold 220,500 American Eagle gold bullion coins in January 2021, a staggering 290% year-on-year increase from last January. It’s not just unexpected demand that’s causing problems, though.

As noted by a retailer of precious metals coins, “There was going to be a backlog in the silver bullion supply chain that rendered silver eagles more scarce either way.” This is because the U.S. Mint is currently changing designs for its American Eagle gold and silver coins, expected to debut this summer. Once available, the U.S. Mint will ration distribution of gold, silver and platinum coins to dealers due to heavy demand.

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

 

 

What Does A Silver Panic Look Like?

February 3, 2021

Has the #silversqueeze already fizzled out?

Hard to know at the moment. Prices are being hammered down this morning as the CME hiked COMEX margin requirements by 18%.

But according to this interview last night with Robert Mish, an independent precious metals dealer with nearly 60 years of experience in the industry, inventories have been overwhelmed by the wave of retail buyers making purchases over the past few days.

As a result, the price of physical silver is currently MUCH higher than paper silver.

If this buying pressure continues, he sees the price of paper silver being pushed up into the $35-50/oz range in the near term. But that’s only if the army of retail buyers keeps at it.

How will we know if the #silversqueeze army is successful in creating a true silver shortage?

Robert shares his war stories from previous panics in the ’60, ’70s and 1980 to give us a sense of what one will look like if it indeed happens:

 

Something Big Just Happened in the U.S. Mint Gold Eagle Market

January 27, 2021

SOMETHING BIG JUST HAPPENED IN THE U.S. MINT GOLD EAGLE MARKET

Something BIG just happened in the U.S. Mint Gold Eagle Market this month.  Not only have Gold Eagle sales in the first three weeks of January surpassed last year’s total by a factor of three, but it’s also the highest figure since the 2008-2009 Financial Crisis.  While Silver Eagle sales have been the main focus of precious metals investors in the past year, Gold Eagle sales are now the new spotlight.

In my last update on Jan 14th, Gold Eagle Sales reached 141,000 oz, compared to 60,000 oz in the same month last year.

Thus, Gold Eagle sales on Jan 14th were already more than double the previous year, with still two weeks remaining in the month.  When the U.S. Mint updated their figures earlier today, they reported 62,500 oz sold in the past week.  Remarkably, the U.S. Mint sold more Gold Eagles in the last week than they did for the entire month last year.  The total Gold Eagle sales as of Jan 25th are 203,500 oz.

As we can see, the U.S. Mint has already sold more Gold Eagles this month than they did for the past three January’s combined.  Folks, this is a BIG DEAL.  Investors are concerned about the crazy Fed and Central bank money printing and stimulus that will continue to be pumped into the markets to prop up the U.S. and global economies.  The fundamentals for the precious metals will only get stronger.

However, we believe the metals and miners’ market prices will fluctuate due to HOW THE MARKET TRADES.  We provide updates on the technicals on the markets and metals to better understand the price movements.  Unfortunately, most precious metals analysts only forecast HIGHER PRICES.  This is a disservice to investors.  Nothing goes up in a straight line.

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

StoneX: Gold to “Maintain High Prices” on Inflation, Slow Recovery, Low Yields

January 26, 2021

StoneX: Gold to “Maintain High Prices” on Inflation, Slow Recovery, Low Yields

StoneX: Gold to Maintain High Prices on Inflation, Slow Recovery, Low Yields

Reuters/Michael Dalder © Reuters

This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: StoneX’s bullish outlook for gold in 2021, low interest rates to support gold for years to come, and a rare gold coin fetches $9.36 million at Texas auction.

StoneX: Expect gold to trend up for at least another six months

In their outlook for 2021, commodities and foreign exchange trader StoneX said that gold should continue trending upwards throughout the first half of 2021 on the back of numerous powerful drivers. These include economic risks and uncertainty as well as geopolitical turmoil, both domestic and international.

As the firm noted, last year saw precious metals emerge as the best-performing commodity group with a 27% rise year-on-year. Silver and gold supported each other’s prices as investors looked for a hedge amid conditions that seem to have very much poured over into the new year. In particular, StoneX sees additional stimulus by global central banks and the accompanying rise in inflation expectations as prominent vehicles for an extension of the bull run.

“The United States, the European Central Bank, and the Bank of Japan have all been active with combined asset growth of over $7 trillion last year. With Congress’ approval of a $900 billion virus relief package in the United States (tied to the $1.3 trillion government funding program) there is more liquidity coming; Europe may follow suit, while Japan is looking to extend support for the corporate sector,” explained the firm.

More than inflation on its own, StoneX noted that its effect on real rates will continue driving money managers to utilize gold as a hedge, especially due to the threat of a stock market correction…

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

Bloomberg Analysts: “Gold the Asset to Beat in 2021”

January 12, 2021

Bloomberg Analysts: “Gold the Asset to Beat in 2021”

Bloomberg: Gold to outperform S&P 500 & Bonds in 2021

© 2011 Bloomberg Finance LP

This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: Gold to spearhead precious metals’ outperformance in 2021, why 2020 was a very good year for national mints, and birdwatcher unearths biggest-ever hoard of Celtic gold in Britain.

Bloomberg analysts: A $2,000 price tag will make gold the asset to beat in 2021

Among traditional assets, it would be difficult to beat gold for the title of top performer in 2020. Having hit a new all-time high of $2,070 in August, the metal has traded around its previous all-time high of $1,911 ever since. And though gold has appeared somewhat rangebound over the previous months, Bloomberg Intelligence senior commodity strategist Mike McGlone sees this as a stepping stone on the way towards an even better year.

According to McGlone, the $2,000 level that gold appears to have had difficulty recapturing is poised to become the metal’s next support, making it the asset to beat once again. “In an investment landscape increasingly dominated by how low — or negative — central banks will set base rates, along with rising debt-to-GDP and QE, we see the foundation solidifying under the price of gold. Resistance at about $2,000 an ounce in 2020 is set to transition to support in 2021,” he explained.

McGlone added rising volatility to the list of reasons why he can’t imagine gold’s price rise stopping, especially as the metal has held steadfast to its upwards-pointing 12-month moving average. In what has by now become a common scenario, McGlone expects gold to continue outperforming the record-setting S&P 500 along with sovereign bonds.

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

 

The End Game

December 27, 2020

The End Game

Dear Investors:

Markets are cyclical. Today, stocks trade at record high valuations while commodities are historically undervalued in relation. The setup is in place for a macro pivot in the relative performance of these two asset classes. Comparable conditions were present with the 1972 Nifty Fifty and 2000 Dotcom bubbles as we show in the chart below.

As capital seeks to redeploy towards the highest growth and lowest valuation opportunities, we expect analytically minded investors will soon be rotating, if not stampeding, out of expensive deflation-era growth equities and fixed income securities and into cheap hard assets, creating a reversal in the 30-year declining trend of money velocity.

Today’s Modern Monetary Theory world with its double barreled fiscal and monetary stimulus is crashing head on with an accumulation of years of declining investment in the basic industries such as materials, energy, and agriculture. In our analysis, the “end game” for the Fed’s twin asset bubbles in stocks and bonds is inflation. We can already see it developing on the commodity front.

The scarcity of jobs and abundance of debt were factors preventing the economy from reaching its full growth potential even before Covid-19. Such have been the concepts underlying the output gap, the theoretical paradox that is thought to have held inflation in check over the course of the last business cycle. But based on comparable historic periods, the macro setup for inflation is more likely to be kicked off by an input gap, i.e., shortages in the primary resources needed for both a strong reserve currency and economic growth at the same time as policy makers pull out their biggest bazookas yet to boost aggregate demand. We expect a new wave of rising commodity prices, set up by past underinvestment in basic resources, to soon ripple through the global supply chain creating a headwind for real living standards. Welcome to the Great Reset.

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

Billionaire Investor Thomas Kaplan: “Gold Prices to Move ‘Way Past’ All-Time Highs”

December 16, 2020

Billionaire Investor Thomas Kaplan: “Gold Prices to Move ‘Way Past’ All-Time Highs”

Thomas Kaplan: Gold Will Soar Way Past New Highs

Image adapted from an interview with Real Vision,

This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: Billionaire investor sees gold blazing far past August’s high, gold is scheduled for a re-run in 2021, and hoard of medieval gold coins unearthed in an English back yard.

Gold’s new all-time high is just the start, says billionaire investor

The bull run in gold that saw the metal blaze to a new all-time high of $2,071 in August might have, at first glance, been a result of the pandemic. To be sure, the prevalent uncertainty and the multi-trillion dollar stimulus dump did their part in elevating prices above the previous high set in 2011. In an interview with Kitco, billionaire Thomas Kaplan explained why gold is really in a prolonged bull market that started in the early 2000s.

Kaplan, who did his doctoral dissertation on commodity supply and demand, said that gold is currently in the third wave of a decades-long uptrend. The first wave launched gold from $250 to $900, with the second wave pulling gold towards the $1,200-$1,900 range. And, as has often been pointed out by careful observers, gold was already on a bull run and had reached $1,800 before the pandemic.

The pandemic, however, has caused both investors and the average citizen to re-evaluate what money really is. Kaplan points out that a trillion dollars, which seemed nearly unfathomable just a few years back, now appears to have become “the new billion” in a staggering display of paper-money inflation. While not exactly good for the mining industry, Kaplan also highlighted the ongoing struggles when it comes to production, adding that new ore is not only increasingly difficult to find but also of a lesser quality.

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

The Golden Road Remains Constant

December 5, 2020

The Golden Road Remains Constant

One must always be careful to distinguish between a truism, a claim or narrative which is so deeply embedded into the fabric of cultural understanding that it is taken to be an indisputable historical fact, and truth, a continuing, self-evident feature of reality which is available to be observed, reasoned about, and tested in the present. Truisms are the handmaidens of convention which, for economic participants, eventually come to replace objective observations. The result is that the ‘science’ of economics is transformed into a battleground for subjective beliefs, where the soldiers are not self-evident observations or testable predictions, but, rather, fashionable claims and politically-correct statements. In recent times, we have seen this to be the case for the Philips Curve, the theory of aggregate demand, and Keynes inversion of Say’s Law.[1] These, among many similar economic ideas, are modern truisms which, though falsified by present-day economic observation, persist as structures of belief which are dearly held by the economists and politicians who shape our collective future.

In this essay, I will draw the reader’s attention to a truism which endures as conventional wisdom today, even though it can be easily falsified by plain experience and objective examination. I speak of a belief which colours the whole of recent economic history: the judgment that the natural element Gold (Au) is now relegated to its present status as a store of value because payment technology has evolved beyond physical media. The whiggish story goes something like this: just as we humans evolve, so, too, does our civilization progress along the rising road of history; therefore, just as our maturing societies exhibit increased technical capabilities, so do our monetary instruments undoubtedly improve with the march of time…

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

Gold & The Great Reset

November 29, 2020

The composition of the US dollar, including what it is backed by, has been replaced many times throughout America’s history. And another replacement is currently underway, warns monetary expert Mike Maloney.

After President Nixon fully severed its ties to gold, our government leaders have increasingly relied on expanding the currency supply to paper over (quite literally) today’s problems at the expense of the dollar’s purchasing power tomorrow.

As Mike explains in his excellent video series Hidden Secrets Of Money, such willful debasement of the currency by furtive and shortsighted politicians is nothing new. Over thousands of years, since the Romans intentionally progressively shrank the silver content of their coins, history is replete with such examples.

And now 2020 has arrived. The Federal Reserve’s response to the pandemic-induced economic slowdown has unleashed more ‘thin air’ creation of new dollars than ever seen at any prior moment in history:

21% of all US Dollars have been printed in 2020

And the leading developed countries of the world are now discussing the need for a Great Reset, in which it’s being proposed that new national cryptocurrencies (perhaps laying the groundwork towards a ‘one world currency’) replace the current existing fiat versions.

Using the lens of monetary history, Mike sees all this as simply a modern spin on the same cycles the world has seen before. Politicians will deform and abuse the currency for their own immediate needs until the system collapses, and a new, more sound alternative emerges from the ashes.

Which is why he remains so confident that gold will strengthen dramatically in the coming macro environment, despite being in a short-lived corrective phase at the moment. In fact, he sees today’s weakness as an excellent accumulation opportunity for both current holders as well as those new to owning precious metals.

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

The global reset scam

November 21, 2020

The global reset scam

This article takes a tilt at increasing speculation about statist global resets, and why plans such as those promoted by the World Economic Forum will fail. Central bank digital currencies will simply run out of time.

Instead, the collapse of unbacked fiat currencies will end all supra-national government solutions to their policy failures. Already, there is mounting evidence of money beginning to flee bank accounts into stocks, commodities and even bitcoin. This is an early warning of a rapidly developing monetary collapse.

Moreover, nothing can now stop the collapse of fiat currencies, and with it schemes to control humanity for the convenience and ambitions of government planners. There can only be one statist solution and that is to mobilise gold reserves to back and save their currencies, which in order to succeed will have to be fully convertible into circulating gold coinage. It will also require the role of governments to be reset into a non-welfare, non-interventionist minimalist role, which can only be achieved after a complete collapse of the current fiat-financed system.

Anything less will fail.

The Deep State and The Blob fuel conspiracy theories

Increasingly, people are beginning to realise that their world is undergoing a period of rapid change, with the future of fiat money now uncertain. For most, it is too difficult to even contemplate. But growing uncertainties are driving wild speculation about what those in authority now have in store for the human race in the form of a global reset. It is a time for conspiracy theorists, aided and abetted by our politicians and central bankers who are being increasingly evasive, because events are spiralling out of their control.

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

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 Bogus Case Against Gold

November 14, 2020

The Bogus Case Against Gold

The Bogus Case Against Gold

Gold is in the early stages of its third great bull run that will take it to record heights.

The first two great bull markets were 1971-1980 (gold up 2,200%) and 1999-2011 (gold up 760%). After peaking in 2011, gold fell sharply from that peak to below $1,100 per ounce by 2015.

Now the third great bull market is underway. It began on December 16, 2015, when gold bottomed at $1,050 per ounce at the end of the 2011-2015 bear market. Since then, gold is up significantly, but it’s small change compared to 2,200% and 760% gains in the last two bull markets.

Still, most mainstream economists dismiss gold. They call it a barbarous relic and say it has no place in today’s monetary system.

But today, I want to remind you of the three main arguments mainstream economists make against gold and why they’re dead wrong.

There’s Just Not Enough Gold to Support the Money Supply!

The first one you may have heard many times. “Experts” say there’s not enough gold to support a global financial system. Gold can’t support all the world’s paper money, its assets and liabilities, its expanded balance sheets of all the banks and the financial institutions in the world. They say there’s not enough gold to support that money supply.

That argument is complete nonsense. It’s true that there’s a limited quantity of gold. But more importantly, there’s always enough gold to support the financial system. The key is to set its price correctly.

It is true that at today’s price of about $1,875 an ounce, pegging it to the existing money supply would be highly deflationary.

But to avoid that, all we have to do is increase the gold price. In other words, take the amount of existing gold, place it at, say, $14,000 an ounce, and there’s plenty of gold to support the money supply.

…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.

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

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