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U.S. MINT GOLD COIN SALES ALREADY DOUBLE vs. 2019: Best BUY PRICES For Gold Eagle & Buffalo Update

U.S. MINT GOLD COIN SALES ALREADY DOUBLE vs. 2019: Best BUY PRICES For Gold Eagle & Buffalo Update

Sales of the U.S. Mint Gold Eagle and Buffalo coins are already double what they were for full-year 2019.  And, with the Fed and central banks continuing to print money hand-over-fist, I doubt the demand for gold coins will diminish anytime soon.

Interestingly, sales for precious metals bullion retail products, according to Dan at Cloud Hard Assets, are running about 60% for gold and 40% for silver (total value, not ounces).  Investors would be buying more silver, but due to the backlog and shortage of retail silver bullion products, individuals are being forced to buy more gold.

According to the U.S. Mint’s most recent update, sales of 2020 Gold Eagles totaled 332,000 oz compared to only 152,000 oz for 2019.  Furthermore, Gold Buffalo coin sales have reached 117,500 oz versus only 61,500 for 2019. Again, we are only five months into 2020, so it will be interesting to see what demand for these U.S. Gold coins will be for the remainder of the year.

Investors looking to acquire Gold Eagles and Buffalos are still paying high premiums.  In comparing the premiums for 2020 Gold Eagles and Buffalos, the best value that I could find from the leading online dealers is about 8%.  However, the Gold Buffalo coin premiums were even higher.

Here is an update on the BEST BUY PRICES for 2020 Gold Eagles and Buffalos from the leading online dealers’ vs. CLOUD HARD ASSETS (Prices below based on $1,745+ gold spot price early Thursday):

As you can see, it’s important to compare the prices of gold bullion products (and services).  Moreover, I am putting together a spreadsheet comparing the top online dealers’ Silver Eagle premiums vs. CLOUD HARD ASSETSToday, the top online dealers 2020 Silver Eagle premiums are running about 59% of the current spot price vs. 39% for CLOUD HARD ASSETS. Again, it’s wise to compare prices and services at the different precious metals dealers.

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

TIGHTNESS CONTINUES IN RETAIL SILVER MARKET: Best Gold-Silver Eagle Buy Prices Update

TIGHTNESS CONTINUES IN RETAIL SILVER MARKET: Best Gold-Silver Eagle Buy Prices Update

With the lack of availability of precious metals retail bullion products, the premiums for gold and silver coins-bars continue to be quite elevated. Depending on the dealer, 2020 Silver Eagle premiums are still ranging between $7.5 and $13. Thus, the Silver Eagle premiums are between 47-81% of the spot price, depending on the dealer.

I continue to check the U.S. Mint website, but there still hasn’t been any update for Silver Eagle sales for May.  While the U.S. Mint sold 7,000 oz of Gold Eagles in May so far, it shows no figure for Silver Eagles.  The large online dealers are still struggling to obtain supplies of silver bullion products with the availability pushed back 2-4 weeks or longer.

Precious metals investors are wondering when retail gold and silver premiums will begin to decline.  That’s a good question.  Gold Eagle Premiums back in early 2009 shot up to 8% and then declined substantially in early summer.  By the end of 2009, Gold Eagle premiums had fallen back to 4%, shown here from GoldChartsRus:

The gold and silver coin premiums used on Nick Laird’s GoldChartsRus website mainly come from MONEX.  While these premiums provide investors with a guide, I wouldn’t trust MONEX as a company.  Monex seems to continue to get into trouble by DEFRAUDING investors.

Federal Court Allows CFTC Case Against $290M Fraud to Proceed
The CFTC alleges Monex Deposit Company scammed thousands of retail customers out of more than $290 million (July 26, 2019)

Newport Beach precious metal dealer Monex accused of $290-million fraud (Sept 16, 2017)

So, good luck if you use or want to use MONEX to acquire precious metals.

Even though some gold bullion product premiums have declined, it will be interesting to see how the premiums will change as the global contagion continues to wreak havoc in the financial system and economy.

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

Important Factors Impacting The Gold & Silver Supply And Price

Important Factors Impacting The Gold & Silver Supply And Price

The majority of analysts still don’t understand that gold and silver are based on two different price or value functions.  To understand the future forecasts for precious metals, investors need to the difference between the two value functions.

In my newest video update, Important Factors Impacting Gold & Silver Price And Supply, I discuss in detail the two different price functions and why the current commodity-based mechanism differs from the precious metals “Store of Value.”

In the video, I explain why the “commodity-priced mechanism” is important as a floor for the gold and silver prices.  Unfortunately, because Harry Dent doesn’t understand this mechanism, he continues to put out faulty and incorrect analysis on the gold price.  Dent stated in his April 13th video update that during the next deflationary collapse of the markets, gold would head back down to $900-$1,000 or the lows of 2008 at $700.

Dent’s gold forecasts continue to be wrong because he fails to incorporate the impact of “ENERGY” and the “COST OF PRODUCTION” on the gold mining industry.

I updated Barrick and Newmont’s combined total production cost versus the gold price for Q1 2020, and was quite surprised.  Again, I explain why I don’t see gold heading anywhere near $700 due to the significant increase in cost to produce the yellow metal since 2006 when gold was the same price.

This video took longer to publish then I had planned due to the research.  I was quite surprised to see Barrick and Newmont’s total production cost rise to nearly $1,400 an ounce for Q1 2020 versus the $1,272 average for 2012, when oil prices were over $100 a barrel.

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

Silver Coin Premiums Soar: Signal “Alt-Money” Demand As Re-Opening Recovery Hype Fades

Silver Coin Premiums Soar: Signal “Alt-Money” Demand As Re-Opening Recovery Hype Fades

Silver is the matrix of precious metals:

  • on the one hand, it is an industrial metal, critical to the production process in many of the world’s most in-demand products;
  • and on the other hand, it has been ‘money’ for millennia, playing second-fiddle as a spending ‘asset’ relative to gold’s ‘wealth’.

The question is always, which of these demand/supply attributes is more prevalent at any one time.

Right now, is it the “blue pill” of blissful ignorance that an economic recovery is imminent and v-shaped; or is it the unpleasant truth of the “red pill” that this is the beginning of the end of the current system and a post-COVID world will look very different (and require protection).

Well, we may have the answer.

The price of silver coins is surging (‘Monetary’ demand) as futures prices sink (‘industrial’ demand), somewhat shunning the hope-filled hyping of stocks’ recovery off the lows in March…

And in fact, this is the largest (physical) silver coin premium since Bernanke disappointed the markets in 2011 and since Lehman sent investors scrambling

Additionally, the demand for “monetary” silver may be driven by the fact that it has never been cheaper relative to gold

In ancient Greece during the age of Pericles, gold was valued at 14x silver. In ancient Rome, Julius Caesar valued gold at 12x silver.

It remained this way for centuries.

Even in the earliest days of the United States, eighteen centuries after Caesar, The Coinage Act of 1792 established a ratio of 15:1.

(According to the law, one US dollar is supposed to be 24.1 grams of silver, or 1.6 grams of gold. So those pieces of paper in your wallet are not dollars– they are technically “Federal Reserve Notes”.)

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

Surviving 2020 #3: Plans A, B and C

Surviving 2020 #3: Plans A, B and C

Readers ask for specific recommendations for successfully navigating the post-credit/speculative-bubble era and I try to do so while explaining the impossibility of the task.

As the bogus prosperity economy built on exponential growth of debt implodes, we all seek ways to protect ourselves, our families and our worldly assets. There are any number of websites, subscription services and books which offer two basic “practical recommendations:”

1. Buy gold (and/or silver) and don’t worry about timing the market as everything else will become worthless.

2. Establish a heavily armed and well-supplied hideaway before everything implodes.

My problem with these suggestions is that they are predicated on a decisive “end of the world as we know it” collapse of civilization.

While I am alive to the possibility of this cataclysm, an analysis of the many feedback loops which will slow or counteract such a decisive collapse suggests other alternatives are even more likely: my term for the slow, uneven decline of the credit/speculative-bubble era is devolution.

I cover feedback loops, historical cycles and why a lengthy devolution is as least as likely a scenario as abrupt collapse in my book Survival+ (free downloadable version is linked below).

In other words, I do not see planning for eventualities as “either/or.” I look at it in terms of three levels:

1. Plan A: dealing with devolution: government services are cut back, prices for essentials rise over time, fulltime paid jobs become scarce, the State (all levels of government) becomes increasingly repressive as it pursues “theft by other means,” i.e. the stripmining of private assets to feed its own fiefdoms and Elites; most assets fall in purchasing power (value) as the system’s financial props erode.

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

IMPORTANT TOM CLOUD PRECIOUS METALS UPDATE: Including Gold & Silver Eagle Best Buy Prices

IMPORTANT TOM CLOUD PRECIOUS METALS UPDATE: Including Gold & Silver Eagle Best Buy Prices

As the global contagion continues to cause a great deal of uncertainty in the markets, I thought it was a good idea for precious metals dealer Tom Cloud to provide a new update.  Tom starts off the video saying that in his 44 years in the industry, he has never seen anything like the current situation in the precious metals markets.

Tom stated that one of his wealthier clients last week took money out of the banking system and purchased a large sum ($millions) of physical precious metals.  Unfortunately, there still are only a fraction of financial planners that advise their clients to own a percentage of physical gold and silver in their portfolio. I believe investors should be increasing the typical 5-10% of precious metals in one’s portfolio to at least 20-25%.

Tom also went on to say that some leading financial analysts are calling for a 30% drop in U.S. GDP by Q2 2020.  This is no longer a recessionary event.  Rather, we are heading into a Depression, the likes we haven’t seen for nearly eight decades.  Very few Americans are prepared for what’s coming.

With investment demand for physical precious metals at near-record levels, Gold and Silver Eagle premiums are some of the highest ever.  It is quite amazing to see Silver Eagles buy prices more than $10 over the spot price.  One large online dealer is selling its Silver Eagles for nearly $12 over spot. Thus, Silver Eagle premiums are ranging between 50-80% over spot.

I also wanted to provide an update on the Gold & Silver Eagle BEST BUY prices.  I spoke to Tom yesterday for about a half-hour.  He told me that Silver Eagle premiums increased again, but CLOUD HARD ASSETS still has the lowest prices versus the top leading online dealers:

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

Central Banks Add More Gold to Their Reserves

Central Banks Add More Gold to Their Reserves

Central banks continued their gold-buying spree in February, although the pace of gold purchases has slowed compared to last year’s near-record purchases.

On net, central banks globally added another 36 tons of gold to their reserves in February, according to the latest data released by the World Gold Council. That was about 33% higher than January’s total.

On the year, central banks have bought 64.5 tons of gold. That compares to 116 tons through the first two months of 2019.

Central bank demand came in at 650.3 tons in 2019. That was the second-highest level of annual purchases for 50 years, just slightly below the 2018 net purchases of 656.2 tons. According to the WGC, 2018 marked the highest level of annual net central bank gold purchases since the suspension of dollar convertibility into gold in 1971, and the second-highest annual total on record.

The World Gold Council bases its data on information submitted to the International Monetary Fund.

Turkey continued to be the biggest gold-buyer. The Turks added another 24.8 tons to their reserves in February.

Russia further increased its stockpile of yellow metal, adding another 10.9 tons to their hoard.

Russia’s quest for gold has paid off in a big way. The Russian Central Bank’s gold reserves topped $100 billion in September 2019 thanks to continued buying and surging prices.

The Russians have been buying gold for the last several years in an effort to diversify away from the US dollar.  Russian gold reserves increased 274.3 tons in 2018, marking the fourth consecutive year of plus-200 ton growth. Meanwhile, the Russians sold off nearly all of its US Treasury holdings. According to Bank of America analysts,  the amount of US dollars in Russian reserves fell from 46% to 22% in 2018.

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

Lacalle: Is Now The Time To Buy Gold?

Lacalle: Is Now The Time To Buy Gold?

In this interview Daniel Lacalle explains why the fundamentals for gold are stronger each day, and why silver and palladium should not be ignored in the current crisis.

Central banks keep buying more gold and will need even more as massive liquidity measures drive their balance sheets higher.

Supply challenges remain with some mines being shut down and new supply coming well below demand (as evidenced by the decoupling – once again – between spot and futs)…

Massive monetary imbalances globally will drive demand from investors looking for a hedge to currency debasement (and that systemic risk is soaring, with sovereign credit markets starting to leak information)…

*  *  *

Finally, we give the last word to Raoul Pal and his most recent thoughts (excerpted) on “A Dollar Standard Crisis” (referring to his institutional market research at Global Macro Investor)…

….

Don’t forget – the $13tn short dollar positions (foreign dollar debt held mainly by foreign corporation and investment vehicles) is the largest position ever taken in the history of global financial markets.

It can only mean a massive, uncontrolled dollar rally. 

QE will not fix this. Swap lines will not fix this. A debt jubilee would fix this or multiple trillions of dollars in write-downs and defaults.

It is the dollar strength that brings to world to its nadir (just like the 1930s). It is the dollar system that is the really big problem.

The dollar has eaten all of its competitors and now it is going to eat itself.

This eventually breaks the dollar after a super-spike as global central banks are forced to find alternatives. 

Remember, nothing lasts forever…

Gold Gains 3% To $1,672 and Silver Surges 5% To $15.40; Goldman Warns Of $3 Trillion Explosion In U.S. Debt

Gold Gains 3% To $1,672 and Silver Surges 5% To $15.40; Goldman Warns Of $3 Trillion Explosion In U.S. Debt 

◆ Gold surged 2.9% and silver by 5% yesterday, with futures leading the way higher with gold reaching it’s highest price in more than seven years

◆ Investors are diversifying into safe haven gold to hedge themselves from the coming destruction of balance sheets, trillions and trillions of fiscal and monetary stimulus and a likely economic depression


◆  JPMorgan Chase & Co.’s Jamie Dimon has blamed the pandemic on creating a “major major downturn” (see News below) and potentially an economic depression

◆Goldman Sachs have warned that the emergency “stimulus” may lead to an explosion of US national debt by about $4 trillion in just two years (see News below). This is not including the trillions in monetary stimulus by the Federal Reserve to bail out Wall Street including most large financial service providers including the mortgage sector and banks

◆ The “Everything bubble” is bursting before our eyes which is evident in the stock market crashes. Property and bond market bubbles will soon burst and confidence in the dollar and other fiat currencies will soon begin to evaporate

◆ Gold’s utility as a safe haven is again being experienced by those who own it. Gold is outperforming and has delivered a 12% dollar return in 2020 year to date, exactly when they need a safe haven and a source of returns as stocks and other assets under perform. Gold has seen even greater returns in other currencies and is 15% higher in euros and 19% higher in pounds year to date.

 The only major asset to outperform gold year to date is the U.S. 30 year bond. This out performance is unlikely to continue as the 30 year bond cannot go much higher. We are near 0% interest rates despite the appalling fiscal, financial and economic outlook for the U.S. 

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

A primer for gold newbies

A primer for gold newbies 

The purpose of this article is purely educational. Increasingly, the wider public is turning to gold in a spontaneous reaction to financial and economic problems that have become suddenly apparent, hastened by the spread of the coronavirus. For everyone now thinking of buying gold it is a leap into the unknown, so they should know why.

It is not just the financially inexperienced, but investment managers and financial advisors are equally unaware of what is happening to money and capital markets. We are in the early stages of a radical debasement of state-issued currencies which is on course to collapse the entire financial system.

I explain the two phases of this destruction of fiat money, the one experienced so far and the one we are about to suffer. I explain why sound money has always been physical gold and silver, returned to by the people after government and banks have collectively destroyed state-originated unsound money.

Introduction

Suddenly, there is increasing public interest in gold. The financially aware will be scratching their heads over what’s going on in financial markets in the broadest sense and might have heard some unintelligible chatter about what is going on in gold. They are asking, why does gold matter? Isn’t gold just an old-fashioned hedge against risk and the true safe haven investment today is US Treasuries? Then there’s the mass of financially unknowledgeable investors who are used to leaving investment matters to their financial advisers, and until recently have viewed the rise in the gold price as an opportunity to sell unwanted jewellery for scrap.

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

Gold Is Now “Unobtanium”

Gold Is Now “Unobtanium”

By now it becoming clear to many that demand for precious metals, as the world ‘turns’, is far outpacing supply as major gold suppliers and sellers exclaim “there is no gold.”

One glance at APMEX pages and two things are immediately clear:

1) There is no gold or silver….

2) And if there is, the premium for physical gold and silver over paper is massive…

Put in context, this 100% premium for silver is shocking (h/t @JanGold_)

And the mainstream media is starting to notice as DollarCollapse.com’s John Rubino points out, The Wall Street Journal just published the kind of article gold bugs dream of… Here’s an excerpt:

Coronavirus Sparks a Global Gold Rush

Epic shortage spooks doomsday preppers and bankers alike; ‘Unaffordium and unobtanium.’

It’s an honest-to-God doomsday scenario and the ultimate doomsday-prepper market is a mess.

As the coronavirus pandemic takes hold, investors and bankers are encountering severe shortages of gold bars and coins. Dealers are sold out or closed for the duration. Credit Suisse Group AG, which has minted its own bars since 1856, told clients this week not to bother asking. In London, bankers are chartering private jets and trying to finagle military cargo planes to get their bullion to New York exchanges.

It’s getting so bad that Wall Street bankers are asking Canada for help. The Royal Canadian Mint has been swamped with requests to ramp up production of gold bars that could be taken down to New York.

The price of gold futures rose about 9% to roughly $1,620 a troy ounce this week and neared a seven-year high. Only on a handful of occasions since 2000 have gold prices risen more in a single week, including immediately after Lehman Brothers filed for bankruptcy in September 2008.

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

“There’s No Gold” – COMEX Report Exposes Conditions Driving Physical Crunch

“There’s No Gold” – COMEX Report Exposes Conditions Driving Physical Crunch

Early this week, we were among the first to report on the “break down” in precious metals markets.

While the demand for gold has been soaring as a safe haven asset amid the multiple global crises we are currently facing, forced paper gold liquidation (as leveraged funds scramble to cover margin calls) and unprecedented logistical disruptions created a frantic hunt for actual bars of gold.

Specifically, as Bloomberg details, at the center of it all are a small band of traders who for years had cashed in on what had always been a sure-fire bet: shorting gold futures in New York against being long physical gold in London. Usually, they’d ride the trade out till the end of the contract when they’d have a couple of options to get out without marking much, if any, loss.

But the virus, and the global economic collapse that it’s sparking, have created such extreme price distortions that those easy-exit options disappeared on them. Which means that they suddenly faced the threat of having to deliver actual gold bars to the buyers of the contract upon maturity.

It’s at this point that things get really bad for the short-sellers.

To make good on maturing contracts, they’d have to move actual gold from various locations. But with the virus shutting down air travel across the globe, procuring a flight to transport the metal became nearly impossible.

If they somehow managed to get a flight, there was another major problem. Futures contracts in New York are based on 100-ounce bullion bars. The gold that’s rushed in from abroad is almost always a different size.

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

US Futures Crash Limit-Down, Bonds & Bullion Bid

US Futures Crash Limit-Down, Bonds & Bullion Bid

Amid the usual last minute negotiations in Washington, spread markets suggested an ugly open for futures but FX trading in Asia was relatively subdued for once.

But, for now, no Congress agreement on stimulus means a lack of bids, so the US equity futures contract are limit-down 5%. 

Dow futures opened down 950 points… limit-down…

ECB Mulls Revisiting its QE Limits

S&P Futs trade limit-down at 2,174 (when Cash opens: 7% 2128, 13% 1989.50, 20% 1828.50)…

Gold popped back above $1500…

Treasuries are bid, extending their yield collapse from Friday…

10Y Kiwi paper yields crashed after RBNZ announced an emergency QE…

WTI has plunged to a $20 handle…

All a big  replay – perhaps – of the failed TARP vote from 2008

The short gamma clearout via quad witching would help calm markets, they said.

MASSIVE SURGE IN PHYSICAL SILVER BUYING: Totally Distorted & Broken Markets

MASSIVE SURGE IN PHYSICAL SILVER BUYING: Totally Distorted & Broken Markets

The world economic and financial markets have entered into a crippling cannibalization of the system in which few are prepared.  While the politicians, financial analysts, and media are providing optimistic forecasts for the future, they continue to underestimate the seriousness of the global contagion.  Thus, after a week or two, these forecasts will be revised lower (once again) to reflect a more gloomy, negative and more realistic outlook.

So, in another a few weeks, the world as it pertains to this contagion will look a lot worse than it does today.  I’d imagine the Dow Jones Index will likely shed another 5-8,000+ points during this period. Also, the global supply chain disruptions will kick into high gear as month-long lockdowns in various countries finally impact manufacturers and retailers across the world.

I haven’t put out too many new updates and articles over the past few weeks.  Rather, I decided to take a step back to research and watch as this global contagion continued to unfold.  However, I will be putting out more updates, videos, and articles over the next month as I believe most people are still unprepared for what’s coming.

Although, I have been a bit busy on Twitter recently.  You can follow my TWEETS and REPLIES on Twitter here: SRSRocco Report Twitter Feed.  When I posted this Tweet on March 15th, the price of oil was $31.  I stated that the price would likely fall to $29 the next day… and it did. The relevant sentence in the tweet below is… WE DON’T COME BACK FROM THIS ONE.

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

Brace for impact

Brace for impact

What a week we just had in the precious metals market.

From a huge drop last Friday–which in the past would have presaged further declines the following week–to a significant rebound in the gold price, coupled this time with a major drop in the US dollar–which I will argue may be the signal for a switch to inflationary conditions.

First the chart

We see the nice deflationary trend of the past 18 months looks to have been decisively broken by last week’s action. Although it will be a few weeks before we can be absolutely sure, last week suggests that we are about to embark on another bout of inflation, no doubt as carefully calibrated by the Masters of the Universe as they can fill a shot-glass of whiskey from a pool of liquidity the size of a football field. Either, like a small child pouring verycarefully, they have poured only too much, or they have sloshed out enough whiskey to fill a large swimming pool, and we are about to see what happens when it all lands in a shot glass.

Now, why the need for some liquidity?

Another chart:

This graph plots the gold-copper ratio against its rate of change. I typically interpret this ratio as an indicator of the real world preference between bricks and mortar and financials. When the ratio is low, it’s a sign that people would rather make refrigerators than chase derivatives. Rate of change is the vertical axis. Near the top of the chart means that the plot is shifting towards the right at high speed. Currently, the system is moving toward the right (ratio is increasing) at the fastest rate in the last couple of years. To me, this means the real economy is degrading very quickly.

Thus the Fed may feel pressured to pump out some liquidity.

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

Olduvai IV: Courage
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Olduvai II: Exodus
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