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Things You Probably Didn't Learn in School about:

The “MONEY” Follows Gold & Silver.


In 2013, gold futures had the first annual drop since 2000.
That is what happened in the PAPER gold market. The New York Commodities Exchange (COMEX) sells derivatives; the exchange sells the same ounce (1 oz) of PHYSICAL gold or silver hundreds of times.  

Take a look at what happened in
markets that traded actual gold and silver. 

2013 PHYSICALS Market

Why do banks own physical commodity assets?

Worldwide, demand for gold coins and bars surged 28% in 2013. Record-demand for bullion resulted in high premiums, delayed deliveries, gold and silver shortages:

  • Gold refineries in Switzerland:  Volumes UP 77% year over year (refiners worked around-the-clock; they “had difficulty sourcing gold”).
  • United States:  Gold coin sales UP 63% (241.6 metric tons – first three quarters of 2013).  U. S. Mint:  Sales of American Gold Eagle 1 oz coins UP 14% from 2012.  Record-sales of silver coins, UP 30% year over year (Mint halted sales 1 month; distributors were rationed allocations).  
  • Perth Mint:  gold sales UP 41% (754,635 oz –Perth Mint refines gold for the #2 gold producer; China is #1).
  • Austrian Mint (Muenze Oesterreich AG):  2013 sales of Philharmonic gold coins UP 36%; “We can’t meet the demand.”
  • Royal Canadian Mint:  Canadian Maple Leaf gold coin sales UP 82.5% year over year (876,000 oz – first three quarters of 2013); Mint announced supply shortages of Silver Maple Leafs, and carefully managed supply by limiting the number of 2013 Silver Maple Leafs sold to distributors, causing backlogs with primary/secondary dealers. 
  • Turkey:  Imported 302 metric tons– 17% of annual world production (Dec. imports UP 64% over Nov.).
  • China:  Gold purchases UP 50% (2,500 metric tons – 75% of global production); gold sales UP 20% from Nov. through Dec. 
  • Japan:  Gold bar/coin/jewelry purchases UP 300% to 684,809.9 Troy oz.  Also, record-demand in Egypt, Singapore, and United Arab Emirates. 

Record Sales U.S. Mint:  Silver sales in 2013 were up 26% from 2012; 42.6 million silver coins sold in 2013.  

Record Sales India:  India swallowed up about 18% of annual global silver production from all mines in 2013; a record 6,125 tonnes.

Follow the money 2014

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January 2014 Shortages of PHYSICAL product
United Kingdom Royal Mint
:
 SOLD OUT 
2014 Sovereign gold coins due to unusual, exceptional demand from countries such as Italy, Greece, and the U. K.  Nicholas Larkin, Bloomberg.
Perth Mint:  SOLD OUT 2014 Australian Kookaburra 1 oz silver bullion coins.

U. S. Mint:  January 2014 gold coin sales were UP 63%/ Silver sales TRIPLED in January, exceeding U. S. production by 1,250,000 Troy ounces.  Allocations reduced by 2/3 (2014 American Silver Eagle 1 oz bullion coins) first four allocations to authorized dealers SOLD OUT/ January orders will not ship until end of February/ Older dates available from secondary dealers/ Expect rising premiums.

Silver-Gold

Buy the real thing – for liquidity and no third-party risk.

On August 9, 2007 (first day of financial crisis), the London pm gold fix was @ $662.60/oz. Today, the price of a 1 oz American Gold Eagle is about $1,325.

By Denise Rhyne

END NOTES

The golden constant is portfolio insurance: Coins and bars will retain purchasing power during periods of hyper-deflation, hyper-inflation, credit collapse, or war. GOLD IS A PRUDENT INVESTMENT.

In 44 years, the U.S. economy has been fundamentally transformed:   America’s Fundamental Transformation.

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