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Americans Are Leading The World By Hedging Their Bets In Silver

Americans Are Leading The World By Hedging Their Bets In Silver

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.

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

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

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…

Australia’s Perth Mint Silver Bullion Sales Surge In 2020

Australia’s Perth Mint Silver Bullion Sales Surge In 2020

With the newest update just released, Perth Mint silver bullion sales surged in the first three quarters of 2020.  And, for the first time in many years, the Perth Mint sold more than two million oz of silver bullion in a single month this year.  The official silver coins produced by the Perth Mint are the Silver Kangaroo, Koala, and Kookaburras.

Not only are the Perth Mint’s silver bullion sales up significantly this year, but gold bullion sales are also up a stunning 160% higher than the same period last year (info from CoinNews.net).  The Perth Mint sold 579,644 oz of gold bullion Jan-Sep this year versus 223,821 oz in 2019.

According to the data published on CoinNews.netPerth Mint silver bullion sales for Jan-Sep increased to 13.1 million oz compared to 7.8 million oz during the same period last year.  That’s a 68% increase year-over-year.

Furthermore, U.S. Mint Silver Eagle sales of 24.5 million oz are up 66% compared to the 14.8 million sold for Full-Year 2019.  So, with two more months remaining in the year, there is a good chance that Silver Eagle sales will reach 28-29 million, nearly double what they were in 2019.

I will update the Royal Canadian Mint’s Silver Maple and billion sales in an upcoming article.

With demand for physical silver bullion up significantly this year, along with the global Silver ETFs, if we see another year like this in 2021, watch out for much higher prices.

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

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.

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

THE FORMER INDUSTRIAL METAL: The Silver Price Surges As Copper & Oil Get Crushed

THE FORMER INDUSTRIAL METAL: The Silver Price Surges As Copper & Oil Get Crushed

The notion that silver is just an “Industrial Metal” was utterly destroyed today as both the copper and oil prices were crushed as silver surged higher.  This is precisely what I was looking for as a positive sign showing that silver is now disconnecting itself from the INDUSTRIAL METAL BALL & CHAIN.

While analysts will continue to regurgitate that the future silver price depends on industrial demand, we can now take this analysis and throw it into the dustbin.  The world is heading into a new paradigm of “Building Wealth to Protecting Wealth.”  And let me tell you, you cannot protect wealth in most STOCKS, BONDS, or REAL ESTATE.  Those days are over for good.

Unfortunately, 99% of investors still haven’t figured that one out yet… but they will.

Today, it was quite an impressive day for silver (and gold) as the metals surged higher while copper, the king industrial metal, got destroyed.  Here is a chart of the copper price versus silver.

As we can see, copper is down 5% while silver is up 2%.  Thus, the leading indicator of the global economy, COPPER, just put out a very BAD SIGNAL, indeed.  Now, if silver was just a mere industrial commodity, why didn’t it’s price follow along with copper???

And, if that isn’t bad enough, take a look at the WTI Oil price.  The West Texas Intermediate oil price was down 5% as well.

With the U.S. oil price falling $2 in one day, that just wiped out $21 million in oil revenues to the oil companies.  This is also terrible news for the U.S. Shale Oil Industry is being held together by DUCT TAPE, BAILING WIRE, and ELMERS GLUE.

Today, I also posted the broad selloff in oil on my SRSrocco Report Twitter feed:

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

THE INSANITY CONTINUES: Massive Diesel Engines Used To Balance Australia’s Renewable Energy Fiasco

THE INSANITY CONTINUES: Massive Diesel Engines Used To Balance Australia’s Renewable Energy Fiasco

Thus, if we have stupid solutions then we must use stupid bandaids.  Again, the insanity continues.

The credit for the information in this brief article goes to StopTheseThings.com, which focuses on the problems associated with wind and solar power generation.  The article, Ships Ahoy! Giant Diesel-Fuelled Ship Engines ‘Solution’ For Australia’s Renewable Energy Crisis, provided me a few good laughs and the desire to share it on the SRSroccoReport.com.

Here is a picture of the Wartsila 50DF Diesel Ship Engine:

Notice the two workers next to the engine?  That should give you an idea of the size of this beast.  According to the article linked above, AGL Energy Limited has installed 12 of these engines at the Barker Inlet Power Station in Torres Island, Australia.  The total output from these dozen ship engines is rated at 210 MW (MegaWatts).

Here’s another picture of Wartsila’s 50DF Diesel Ship Engine at the factory plant.

These Wartsila engines can run on diesel, natural gas, and bunker oil.  Can you imagine how much fuel a dozen of these engines consume to balance the power lost from wind and solar generation??  If you read the article linked above, which I highly recommend, wind power generated in Southern Australia can see drops of 3,000 MWs!!

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

How Much Silver Bullion Was Sold By The Top Three Official Mints So Far This Year?

How Much Silver Bullion Was Sold By The Top Three Official Mints So Far This Year?

The top three official mints sold a great deal of retail silver bullion products in the first half of 2020.  However, the sales figure could have been a great deal higher if the various government mints weren’t forced to shut down production.  The top three official mints in retail silver bullion sales are the U.S. Mint, Royal Canadian Mint, and the Perth Mint.

According to the data from the 2020 World Silver Survey, for last year’s figures, the Royal Canadian Mint sold 25.8 million oz (Moz) of silver bullion products, followed by the U.S. Mint at 19.5 Moz and the Perth Mint with 12.7 Moz.  The majority of the 19.5 Moz of U.S. Mint silver bullion products sold last year were from the 14.9 Moz of Silver Eagles and 1.5 Moz of the Five-ounce American The Beautiful Silver Coins with the remainder in Silver Eagle Proofs, collectibles, and various numismatic coins.

However, both the Royal Canadian Mint and the Perth Mint also sell silver bars.  The Royal Canadian Mint sells 10 oz, 100 oz, and kilo silver bars besides its Silver Maples and various other official silver coins and numismatics.  Unfortunately, since 2015, the Royal Canadian Mint no longer provides the sales figures for its Silver Maples.  I will contact the Royal Canadian Mint to see if they will provide this data.

Regardless, if we look at the first half of 2020, here is the increase in silver bullion products from these top three official mints.

In the first six months of 2020, these top three official mints sold 34.9 Moz of silver bullion products versus 24.1 Moz during the same period last year.  That turns out to be 10.8 Moz more silver bullion products sold 1h 2020, or 45% higher than during 1H 2019.

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

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

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?

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

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.

CHART OF THE WEEK: The Surprising Drop In U.S. Crude Oil Production

CHART OF THE WEEK: The Surprising Drop In U.S. Crude Oil Production

U.S. crude oil production experienced a surprising drop last week, even though domestic demand for oil and petroleum products increased.  This came as a surprise to some energy analysts.  Furthermore, the IEA, International Energy Agency came out with a forecast for global oil demand to fall 8.1 million barrels per day in 2020.

I have to say, this is terrible news coming from the IEA.  Just last month, the IEA stated that global oil demand could fall to 7.1 mbd (million barrels per day), but only recently updated their forecast for an 8.1 mbd decline in 2020 due to “gloomy airline travel.”

Actually, we don’t really know what global oil demand will look like by the end of the year.  There are way too many variables.  Even though the Fed and central banks are planning to pump in more stimulus plans over the next few months, the negative SNOWBALL EFFECT of all the closed stores, unemployment, commercial real estate armageddon, collapse in airline travel, supply chain disruptions, and so forth, will likely impact oil demand to a greater degree by the end of 2020 and into 2021.

Another CURVEBALL to hit the United States is the coming collapse in U.S. Shale oil production.  While some companies have curtailed production, and are now bringing some of it back online, total U.S. crude oil production surprisingly declined to 10.7 mbd last week.

U.S. crude oil production reached a peak of 13.1 mbd in late February, right before the global contagion and shutdown of economies.  It fell to a low of 10.5 mbd in mid-June, then rebounded to 11.0 mbd for the next two months.  However, in the lasted EIA, U.S. Energy Information Agency weekly report, U.S. oil production fell from 11.0 mbd to 10.7 mbd last week.

…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

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…

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

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…

CHART OF THE WEEK: Mexico & Peru Silver Production Big Declines Again In May

CHART OF THE WEEK: Mexico & Peru Silver Production Big Declines Again In May

According to the data released by Mexico and Peru’s governmental mining data, domestic silver production continued to be depressed in May.  Interestingly, the production data just released from Mexico’s INEGI shows that the country’s silver production in May was even less than what they reported for April.

I first wrote about this in my article, World’s Two Largest Silver Producers Mine Supply Cut Drastically In April.  The combined silver production loss from Mexico and Peru in April was 432 metric tons or 53% versus the same month last year.  Peru accounted for the largest of the decline in April at 237 metric tons (mt) compared to 195 mt for Mexico.

However, Mexico’s silver production in May dropped to 298 mt compared to 301 mt in April.  Here is the combined silver production by Mexico and Peru from April 2019 to May 2020:

The net loss of silver production from Mexico and Peru over the last three month period (March to May) is 770 mt, or 32% less than it was during the same period last year.  Thus, just these two countries have lost nearly 25 million oz of silver production.  I imagine once we factor in losses of silver production from other countries, we could see upwards of 35-40+ million oz decline so far.

But, this is only PHASE ONE of the collapse in global silver production.  I stated that as the U.S. and the global economy begin to roll-over in the second half of 2020, and onwards, we are going to see a reduction in base metal demand.   With so many people becoming unemployed, the global recession-depression will cause a significant decrease in copper, zinc, and lead demand.  Thus, in PHASE TWO, demand for base metals will decline, and with it, the curtailment of copper, zinc, and lead production.

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

Massive Investment Demand Puts Silver Back On The Mainstream Radar

Massive Investment Demand Puts Silver Back On The Mainstream Radar

With silver up 30% for the month, the shiny metal is now back on the Mainstream Media Radar.  Yeah, it’s been seven long years since silver traded at $24, but now it looks as if it is just in the beginning stages of a new Bull Market.

Last Friday, CNBC ran an interview with Bill Baruch, president of Blue Line Capital.  He said that when silver was trading at $22 on Friday, he expected more gains.  And, this precisely what took place this week.

This is what Bill Baruch stated during his interview:

Bill Baruch, president of Blue Line Capital, expects more gains.

“I love the precious metals and have always said that you need a portion of your portfolio at minimum in precious metals, so silver has some room to run here,” Baruch said on CNBC’s “Trading Nation” on Thursday.

Baruch says the charts suggest $26 per ounce could be the next hurdle, a level of resistance stretching to 2011 that could now become support. If it moves past that, he says ”$30 could be in the cards, too.”

When Bill Baruch made that comment last Friday, silver was trading at $22.  I published the weekly chart below in my article last Wednesday titled, BULLISH MARKET UPDATE: Silver Price Gets The Green Light To Move Higher, showing the next target level of $26-$26.50:

And, on late Monday night during Asian trading, silver reached a high of $26.27, in the middle of the $26-$26.50 target level.  However, in a very short period, silver sold off $4 before recovering back to $24.

With the silver price up 30% in July, along with reaching the $26 target level, it seems like the next move is a correction lower, consolidation before the next leg higher.

I replied to someone via my SRSrocco Twitter Feed, why I thought silver had put in a short-term top:

…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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