Category: Silver Views

Gold has caught a bit of a bid, pressuring the high for the week that occurred on Monday, right after the Italian referendum defeat. Silver jumps to 3-week highs, reclaiming 17 handle.

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A century later, could silver beat gold to become India’s preferred investment option once again?

GoldSilverBars
02-Dec (Quartz) — Indians’ famous love for gold has created serious and ongoing economic issues for the nation. In 2011, Australian investment bank Macquarie estimated that 78% of India’s household savings were held in gold.

…And it seems a return to silver as a major investment for consumers in India may be on the cards. Following the recent import tax hikes for gold, 2015 saw Indian silver imports grow to almost 8,000 tonnes, 14% up on the previous 2014 record. At the same time, demand for gold jewellery, which accounts for 75% of all Indian gold demand, is down 30% for the 12 months to the end of September 2016, according to the World Gold Council. This points to a possible shift back to silver as a more prominent investment in India.

…Even a small substitution from gold to silver would result in a massive increase in the price of silver. A 10% reallocation from gold jewellery investment to silver in India would nearly double world silver jewellery demand. Mines and other sources would not be able to fill the gap immediately; prices would rise, further fuelling demand and creating a new, shiny headache for those trying to marshal India’s unusual economy.

[source]

PG View: The silver market is indeed substantially smaller than the gold market. If this trend continues (and is allowed to continue) the price implications will be significant.

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Gold may sparkle but silver offers better profit opportunities

SilverBars
08-Nov (CNBC) — The rebound rally in gold is well established with a move above $1,290. The upside target is near $1,350.

It’s good to see the gold uptrend continuing but the upside target delivers only 4.65% profit. Rather than trade gold there are more effective and profitable ways to trade this rebound. Gold’s companion, silver, has similar characteristics but offers a higher return for the same behavior.

Silver lags the gold price behavior. Silver has a resistance level near $18.75. This is the equivalent to the $1,290 resistance level on the gold chart. Silver lags gold so the silver price is only just moving above resistance near $18.75.

A breakout at this level has a target near $21.00. This trade offers a 12% return compared with a 4.65% return from gold for the same price behavior move.

Silver has a longer term upside target of $26.00. That’s 36.8% from the current price near $19.00.

Silver is slower to move but it has more room to move and this delivers better profits.

[source]

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Gold, Silver Pressured By Bearish Outside Markets

GoldSilverBars
22-Aug (Kitco News) – Gold prices are down and hit a two-week low in early U.S. trading Monday. Silver prices are sharply lower and hit a seven-week low overnight. The key “outside markets” are in a bearish daily posture for the precious metals to start the trading week, as the U.S. dollar index is higher and crude oil prices are lower. December Comex gold was last down $6.80 an ounce at $1,339.40. September Comex silver was last down $0.432 at $18.88 an ounce.

…The highlight of this week will be the Federal Reserve’s annual symposium held in Jackson Hole, Wyoming. Fed Chair Janet Yellen speaks at the event on Friday. Recent comments from Federal Reserve officials have been mixed, but the majority of their recent rhetoric has leaned toward the hawkish side of U.S. monetary policy. Fed Vice Chairman Stanely Fischer on Sunday gave a speech that was deemed hawkish. There are now increasing ideas in the marketplace that the Fed will raise interest rates yet this year. Such has put some upside pressure on the U.S. dollar index just recently.

[source]

PG View: Silver fell to an 8-week low, boosting the gold/silver ratio back above 70.

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Silver Trouncing Gold Signals Bull Market May Continue

GoldSilverBars
04-Aug (Bloomberg) — An ounce of gold buys the least amount of silver since 2014, which may signal to some investors that precious metals are set for further gains. In a bull market for precious metals, silver usually outperforms gold, and the reverse tends to be the case in a bear market. The ratio between the two fell to the lowest in three decades in 2011 when gold climbed to a record. Silver may continue to outperform its sister metal into 2017, according to Georgette Boele, a currency and commodity analyst at ABN Amro Bank NV.

[source]

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Silver traded briefly back above $20, after trading as low as $19.19 post-NFP. Presently up a dime on the day.

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Boockvar: Gold and silver will be the last ‘currencies’ standing

GoldSilverBars
07-Jul (CNBC) — The era of modern day monetary omniscience is coming to an end.

Look no further than the near 30-percent year-to-date rally in gold that has it sitting at 28-month highs and the almost 50-percent rise in silver this year to near two-year highs.

Look at gold as the anti-fiat currency. The one that can’t be manipulated, debased, and conjured up electronically at one’s whim. One has to actually dig it out from the ground. Thus, it is referred to as “precious” as there is a limited supply.

While all the gold that has ever been mined still exists, you can fit it all in two Olympic-size swimming pools. It is a rare commodity – actually, I’d rather refer to it as a currency. And rare is not something that can be said for the world’s paper currencies that have been and continue to be printed in the trillions.

[source]

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Silver extends rally, gold tags along as stocks sink

GoldSilverBars
05-Jul (MarketWatch) — Silver traded at two-year highs Tuesday, maintaining its status as the standout among metals as lingering post-Brexit economic uncertainty underpinned the relative safety of haven investments, including silver and gold.

September silver gained 17 cents, or 0.8%, to $19.75 an ounce. It earlier pushed above $21 an ounce on an intraday basis for the first time since July 21, 2014.

At least one analyst questioned if silver’s move had come too far, too fast, and was possibly driven by unusual factors, including thin volume surrounding the U.S. Independence Day holiday. U.S. markets were closed Monday.

“The metals may be taking a breather before the next leg, but I remain skeptical, especially on silver,” said Peter Hug, Kitco Metals global trading director, in a blog post. “It appears that the $3 move on silver from the $18.50 level last Thursday to $21.20 over the weekend was likely a large commercial that decided or was forced to cover a short position…”

…Gold and silver pushed higher after comments Tuesday from Bank of England Governor Mark Carney. He said the U.K. is facing a “period of uncertainty and economic adjustment.” He justified the measures the central bank has taken to support the economy, though warned that they will not “fully and immediately” be able to offset market and economic volatility.

[source]

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Gold heads for fifth week of gains and silver jumps


01-Jul (Reuters) — Gold rose 1 percent on Friday and was heading for its fifth weekly gain, supported by a weaker dollar and prospects for further monetary policy easing in the wake of Britain’s vote to leave the European Union.

Spot gold rose to a session high of $1,338 an ounce, and was 0.8 percent higher at $1,332.76 an ounce by 1155 GMT. The metal gained 8.8 percent in June, its biggest monthly rise since February.

Gold’s strength benefited silver, which breached the $19 an ounce level on Friday for the first time since September 2014. It rose as much as 3.8 percent to $19.40 and traded 2.6 percent higher at $19.18. Silver was on track for its best week since August 2013 having gained more than 8 percent so far.

“For gold, the initial reaction was safe-haven demand due to the uncertain political situation in Europe, but then the latest move might be more of a reaction to comments from central banks that they are moving to an easing bias,” Danske Bank senior analyst Jens Pedersen said.

“Near term, the pivotal moment for gold will be next Friday’s (U.S.) jobs report, because a decent print will at least remove the uncertainty about the state of the U.S. jobs market and the Fed’s decision to postpone any rate hike would be more about the external effect of the Brexit vote on the U.S. economy,” Pedersen said.

The dollar fell 0.4 percent against a basket of six currencies, while European stocks recovered on signs that central banks such as the Bank of England, the Bank of Japan and the European Central Bank will loosen monetary conditions even further.

Concerns about the global economy have made a U.S. rate rise in coming months less likely, analysts say, but much will depend on U.S. economic data and markets will be watching non-farm payrolls due on July 8 in particular for clues.

Low U.S. interest rates are positive for gold because the opportunity cost of holding it decreases and the dollar typically falls, making the metal cheaper.

Societe Generale raised its gold price forecasts on Thursday on concerns about the ongoing political, financial and economic fallout of Britain’s vote last week to leave the European Union.

“Looking ahead, it seems that gold will remain one of the major beneficiaries in the current backdrop, as heightened volatility and lingering uncertainty will keep investors’ risk
appetite in check,” the bank said in a note.

[source]

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Silver Acting Like ‘Gold on Steroids’ as Assets Near Record High

silverbarcoin
08-Jun (Bloomberg) — For all the talk about a collapse in commodities, investors are close to making the biggest bet ever on silver.

Silver funds have taken in a wave of new cash this year and assets are approaching an all-time high. Prices are up 23 percent in 2016, following a similar rally in gold on speculation the Federal Reserve will hold off on raising interest rates.

“We’re still seeing big chunks of managed money coming into the silver market,” Adrian Ash, head of research at online-trading service BullionVault, said by phone from London. “Inflows from our clients match those at the all-time highs of early 2011.”

“Silver has gone mental as it sometimes does,” he said. “It’s gold on steroids.”

Silver is often used as a more volatile play on gold’s inflation and risk-hedging properties. The performance this year has beaten other precious metals — gold, platinum and palladium. While silver funds have seen a surge in popularity, they’re still a tiny part of the market compared to gold.

[source]

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`Rocketing’ Silver Set for Best Month Since 2013 as Gold Climbs

GoldSilverBars
29-Apr (Bloomberg) — Silver climbed to the highest in a year and headed for the best month since 2013, getting a boost from the dollar’s slump and an improving outlook for industrial demand. Gold neared a one-year high.

All precious metals rose as a gauge of the dollar touched an 11-month low after weaker-than-expected U.S. economic growth cut prospects for higher interest rates, adding to the appeal of non-yielding assets. Traders now see a 59 percent chance of the Federal Reserve raising borrowing costs this year, down from 64 percent at the start of this week.

Silver’s 15 percent surge this month has bettered gold’s advance amid optimism that industrial usage will increase as China’s economy shows signs of stabilizing. About half of the metal’s demand comes from products ranging from electronics to solar panels. The country’s silver imports climbed 39 percent in March, rebounding from the lowest since 2014, customs data show.

“Investors’ confidence that the Fed will increase the rate at the next meeting has declined, leading to the dollar weakening and driving the up the prices for the precious metals,” Dmitry Kolomystyn, the chief commodities strategist at Sberbank CIB, said by phone from Moscow. “Silver is rocketing” and has also benefited from improving Chinese demand, he said.

[source]

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Silver gains, gold sinks but both metals on pace to log weekly gains

GoldSilverBars
22-Apr (MarketWatch) — Gold futures were headed for back-to-back declines Friday but could salvage a weekly gain, while silver prices remain near their highest in about a year. Metals markets are consolidating late-week after a significant rise as traders contemplate what’s next for interest rates and their impact on holding nonyielding precious metals.

Financial markets assessed the European Central Bank’s decision to stand pat on its primary interest-rate tools and looked ahead to the U.S. Federal Reserve’s monetary policy meeting next week. Metals trading remains largely reliant on the latest moves for the dollar trading pairs, with a focus on eurodollar. A stronger dollar tends to put pressure on metals priced in that currency.

“The euro has given up all its gain against the dollar after the ECB’s decision. This is despite the fact that the ECB has shown no immediate need to add stimulus, which should boost the value of the euro,” said Naeem Aslam, chief market analyst with AvaTrade. “However, the trade hasn’t worked according to its logic and traders have decided to shave some profit this trade…the ECB president has said that the risk is still tilted towards the downside for global growth [and] the bank will continue to use its tools to combat this.”

[source]

PG View: With silver above $17, the downside in gold is likely to be quite limited.

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Silver `Spike’ Seen Extending Best Start in Five Years

21-Apr (Bloomberg) — Silver, up 24 percent in the best start to a year since 2011, is still gaining steam, according to one technical indicator. The metal surged for a second straight session above the upper limit of its Bollinger band, which has itself been climbing since April 11, signaling a “spike is coming,” according to Fain Shaffer, the president of Infinity Trading Corp. in Indianapolis. Silver has rallied on signs of industrial demand for the metal and bets that policy makers will be slow to raise U.S. interest rates.

[source]

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Silver surges to best performing commodity

silverbarcoin
20-Apr (FT) — An explosive two-week rally has made silver the best performing commodity this year, fuelled by a surge in interest from hedge funds and Chinese traders after it fell to an uncommonly large discount to gold.

Silver has now outpaced gold in terms of gains as the metal has rallied 14 per cent in 11 days to $17.05 a troy ounce.

This year it is up 23 per cent compared with 2.3 per cent for the FTSE All-World index of global shares.

A wave of concentrated catch-up buying saw silver jump more than 4 per cent on Tuesday after it lagged behind gold’s upward move this year. Silver is often traded along with gold and the ratio between the two is a closely watched metric.

Before the recent rally, the gold-silver ratio hit its highest level in more than seven years in late February. It is now back down close to its historical level of 70.

Gold prices have risen 18 per cent this year on delayed expectation for a Fed rate rise.

[source]

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Silver jumps 3% to 10-month high as hedge funds buy in

SilverBars
19-Apr (MarketWatch) — Silver futures climbed to their highest level in more than 10 months on Tuesday, as gold futures also gained.

Silver for May SIK6, +4.10% delivery advanced 2.6%, or 43 cents, to $16.68 an ounce, trading at levels last reached in early June. June gold GCM6, +1.41% tacked on 0.7%, or $8.70, to $1,243.70 an ounce.

Hedge funds boosted their bets on silver last week, pushing the overall market into a record net long position, according to a Mining.com report citing CFTC data. That came as silver gained 6% last week.

Analysts also attributed silver’s jump in part to strong buying in China and a weakening dollar.

[source]

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Silver showing good resilience this morning

18-Mar (USAGOLD) — Silver is showing good resilience this morning in the face of the pullback in gold. The gold/silver ratio has declined by more than 6% since peaking at 83.82 two-weeks ago. The ratio is presently 78.25.

While perhaps to early to suggest that the trend has changed, watch this one closely. It would be nice to see silver play some catch-up to gold. If silver takes the lead, the metals market could be off to the races.

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Why Poor Man’s Gold May Be About to Get More Investor Love

09-Mar (Bloomberg) — Silver hasn’t been so cheap relative to gold for more than seven years and with mine supplies forecast to contract this year that may be a sign it’s ready to come out of the yellow metal’s shadow.

Mine production of silver will probably drop in 2016 for the first time in over a decade and demand is set to outstrip supply for a fourth straight year, says Standard Chartered Plc. Much of the world’s silver is extracted from the ground with other minerals, and output cuts announced by the biggest miners will hurt supplies of the metal as well as others such as copper and zinc.

Silver’s 10 percent advance this year has trailed gold’s 18 percent surge as financial turmoil and worries about a global slowdown sent investors flocking to the yellow metal as a haven. An ounce of gold bought about 83 ounces of silver last month, more than any time since the financial crisis of 2008. That’s a signal to some that it’s relatively undervalued and will narrow the gap.

More than 50 percent of demand comes from industry, including about a quarter from electronics, and to some extent silver’s fortunes follow those of industrial raw materials such copper, zinc and lead. The London Metal Exchange index of six metals has climbed about 14 percent since slumping to the lowest level in more than six years in January.

[source]

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Market seeks clearer guidance on precious metals benchmark rules: sources

02-Feb (Platts) — There have been some hiccups with the LBMA Silver Price so far this year, which have caused many to question the electronic system’s effectiveness.

The LBMA, which does not participate in daily operations, declined to comment on the matter.

Both CME and Thomson Reuters declined to comment on the matter of central clearing or increased participation, pending an investigation into last week’s settlement issues.

“We are investigating the trading activity that took place during the Thursday January 28 auction. It would be inappropriate to provide any further comment at this stage,” Thomson Reuters said.

On January 28 the benchmark settled 6% below spot.

“It’s very simple. The system needs more members. Clients need to be able to trade through the banks that they already have credit lines with,” said one fund manager.

He reiterated the view that more guidance needs to be given by the Financial Conduct Authority.

The FCA did not respond to requests for comment.

[source]

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Where’s the silver lining? Metals market airs concerns over global benchmark process

29-Jan (Platts) — Regulation. Regulation. Regulation. Once again it is being blamed for the London Bullion Market Association Silver Price — operated and administrated by CME Group and Thomson/Reuters — settling around 6% below the spot price January 28. A matter of some contention across the market.

The jury is well and truly out on whether or not it is the fault of the system, or just another headache embedded by over-regulation.

The LBMA Silver Price settled January 28 at $13.58/oz. When the daily auction process kicked off the spot price was $14.42/oz.

Questions were raised about the process across the metals market January 6, after it took 60 attempts to settle.

One trader said January 28 that he would point the finger of blame at over-regulation of the market.

“I would not say it’s anything technical — the auction was functioning as programmed,” he said. “I’d say it’s definitely to do with regulations and supervision.”

…The official line from the CME was:

“The LBMA Silver Price is established through a transparent electronic auction mechanism designed to adjust the price until there is equilibrium between buy and sell orders. Given the orders placed in the auction today by five participants, the buy and sell orders became balanced after 29 rounds and the LBMA Silver price was established at a price of $13.58.”

[source]

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‘Anti-Arb Compliance’ Sinks London Silver ‘Fix’ 6% to 7-Year Low, Spot Rallies Straight Back

28-Jan (BullionVault) — Silver prices sank almost over 80 cents at Thursday lunchtime’s London benchmarking, hitting the lowest level in 7 years – while gold prices and Comex silver futures contracts held almost unchanged near multi-month highs – thanks to what some traders called the unintended consequences of regulatory compliance by banks and brokerages.

Modelled on the century-old ‘London Fix’ which it replaced in 2014 – and which offered a moment of unlimited liquidity to would-be buyers and sellers – the LBMA Silver Price became a formally regulated benchmark under UK law last April.

With spot bullion for London delivery quoted around $14.41 – only 1.1% below yesterday’s new 7-week highs – the 12 noon benchmarking auction saw what participants called “heavy selling”, with lower suggested prices failing to elicit stronger demand to balance it.

The silver price suggested by exchange group the CME’s electronic algorithm was then cut ever lower before suddenly finding enough demand to balance the selling at the lowest price since 30 July 2009.

Dealers blamed Thursday’s action on rules – decided by the compliance departments of banks and brokerages, and aimed at meeting the new regulatory regime – which block traders participating in the benchmark auction from “arbitrage” in other silver markets at the same time.

[source]

PG View
: Really? There was no demand ahead of $13.85? This doesn’t pass the smell test . . .

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Silver market in disarray after benchmark price fixed far below spot rate

28-Jan (FastMarkets) — The silver market was thrown into disarray on Thursday after the LBMA Silver Price was set 84 cents below the spot and futures price this morning.

The LBMA Silver Price – the crucial daily benchmark used by producers and traders around the world to settle silver products and derivatives contracts – was set at $13.58 per ounce.

At the time of the auction, which begins at 12 noon London time, the spot price was at $14.42 per ounce while the futures price on the CME was at $14.415, leaving a number of market participants extremely confused as to what has happened.

“Unfortunately, it is not [a mistake],” Ole Hansen, head of commodity strategy for Saxo Bank, told FastMarkets. “This could be the end of the fix. It took 14 minutes to find a fix – they obviously found a fix way off of the market.”

The difference between the two was nearly six percent but the benchmark cannot be changed, a person familiar with proceedings told FastMarkets.

Another source also suggested that the continued existence of the fix has been put in jeopardy by the huge discrepancy in today’s price, adding that many producers – who still use the price as their daily reference – may have lost significant amounts of money if any contracts have been settled according to the fix.

“A huge number of contracts are still settled on that price,” another said. “This will no doubt cause significant problems.”

[source]

PG View: Spot silver plunged briefly to $14.00 before recovering. But I don’t see how the parties could even possibly agree to a fix so far below the reality reflected in the spot and futures markets . . . There is likely far more to this story.

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“Unprecedented Demand” – US Mint Sells Nearly As Much Gold On First Day Of 2016 As All Of January 2015

11-Jan (ZeroHedge) — While Chinese residents were lining up in front of banks and currency exchange kiosks, desperate to convert as many of their Yuan into dollars as the government will permit, Americans were likewise busy exchanging their own paper currency, so greatly in demand in China, into gold and silver.

As Reuters reports, American Eagle silver coin sales jumped on Monday after the U.S. Mint said it set the first weekly allocation of 2016 at 4 million ounces, roughly four times the amount rationed in the last five months of 2015, after a surge in demand. It will not be enough.

According to the Mint, more than half of the week’s allocation of silver sold on Monday, the first day of 2016 sales, a sign that demand entering 2016 is literally off the charts.

Putting the silver demand in context, the 2.76 million ounces of silver bullion coins sold today is exactly half of the 5.53 million ounces that sold in all of January 2015.

[source]

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Silver Maple Leaf Sales Surge 76 % Y/Y

by Koos Jansen
silver-maple-leaf01-Dec (BullionStar) — In the third quarter 9.5 million ounces (295 tonnes) of silver were sold in Maple Leaf Coins by the Royal Canadian Mint, according data released on Friday. Third quarter silver coin sales at the Canadian Mint were up 76 per cent from the third quarter in 2014 and up 40 % from the second quarter in 2015.

The data available on the website of the Royal Canadian Mint shows Q3 silver Maple Leaf sales were the highest since Q2 2011 (346 tonnes) when the silver price peaked above 45 US dollars an ounce. Currently, spot silver is trading at 14.25 US dollars an ounce. Many retail precious metals investors have taken the opportunity this year to buy silver coins at bargain prices while there still is great economic uncertainty around the world.

[source]

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Prepare Now For The Coming Global Financial Calamity

05-Oct (TraderPlanet) — In a September 20, 2015 interview, gold expert Bill Holter argued that the economic system is on the verge of a “financial calamity.”

Discussing the recent Fed decision not to raise interest rates, Holter said, “If we had an increase in interest rates. . .the markets would close within two weeks. . ..I don’t think there’s any way the Fed can tighten.” He sees more quantitative easing (QE) in the future, with QE in China because “they’re imploding.” Worse, after 80 months of 0% interest rates and massive printing of money, there is no recovery, let alone any expansion of global markets. He said, “Trade is slowing,” which means that “global GDP is slowing.”

Holter said, “They know they need to do another QE, but they know if they do that, they’ve lost all credibility.” Talk about raising interest rates, he argued, is an attempt to try to regain some credibility. Even as the mainstream media discusses how it will not be that bad if the Fed raises rates, Holter argues, “All that’s left is a reset. . ..The Fed is now helpless to stop the coming global financial calamity.”

Turning to gold and silver, Holter said, “I think this is the bottom. Can they push the price down again? It’s possible, but. . . . The physical market has hit a hard bottom.”

…Holter said, “If some type of an event happens today, you could wake up tomorrow and all of that gold could be cleaned out.” Owners of gold and silver won’t sell their gold or silver until you can give them a currency they can trust. Holter warned, “We will have a standard of living completely unthought-of of as possible.”

When credit shuts down, he warned, distribution shuts down. “This is not going to just be a financial problem, but a problem getting things you need to live.” Holter said, “These big stores get stocked up every single night. . . . The average store only has food for about two or three days. So, this is not going to just be an issue about you paying your bills. It’s going to break down so badly it is going to be an issue about whether or not you can get food.”

[source]

PG View: Obviously this is something we hope does not happen. However, the prudent investor is prepared!

Don’t think it could happen? Post-financial crisis books by the likes of Ben Bernanke and Tim Geithner reveal just how close we came to the abyss. We may not be so luck the next time.

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Scarce silver to get even tougher to find in 4th quarter

04-Oct (MINING.com) — The void left by government mints in North America is shaking up the silver market, creating a major opening for competitors to supply the growing ranks of “silver stackers” and capture market share.

Shortages of fabricated silver bullion products continue across the board. Mints and refiners have fallen progressively further behind in recent weeks – caught flat-footed by a spike in demand starting at the end of June.

…The sovereign mints – particularly in the U.S. and Canada – aren’t likely to pull their weight in the 4th quarter. Almost all of the remaining production of 2015 dated silver American Eagles and Maple Leafs has now been sold. That means many buyers may soon find themselves in a queue for delivery of 2016 dated coins sometime after the new year, or paying even bigger premiums for coins from stock.

The problem is the pipeline of new coins, which is already insufficient. It will completely shut off towards year end. The U.S. Mint, whose bureaucratic incompetence historically makes it the most incapable of keeping up during demand spikes, will stop all production sometime in early to December to change over to the 2016 dies. The production halt generally lasts a month, and deliveries of new coins resume in early to mid January. (Switching out coin dies at private mints only takes a few minutes, but for some reason the process takes several weeks at the U.S. Mint.)

[source]

PG View: Several words of caution:

1. Beware of brokers selling Eagles at below market premiums with the promise of delivery in December (or even January). They (and you) are betting on the U.S. Mint fulfilling their production expectations and that is hardly a sure thing with the Mint on allocation since July and the above report that “almost all of the remaining production of 2015 dated silver American Eagles and Maple Leafs has now been sold.” The U.S. Mint sold out of silver Eagles in early-November last year, and I wouldn’t be surprised if that happens even earlier this year. At that point they may just shut down for the remainder of the year to retool for 2016 strikes.

2. Private mint rounds become popular only when sovereign mint coins can’t be had. When the U.S. Mint and RCM get caught up and Eagles and Maples are readily available again, rounds become very illiquid and difficult to sell.

3. Consider gold as a viable alternative to silver at this juncture. Most investors see silver as undervalued relative to gold with the ratio above 70. While that may be true, when premiums are factored in, the ratio is actually in the mid-50s. The value proposition is not nearly as great in “real” terms.

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Rickards: It’s important to allocated part of your portfolio to physical assets

by James G. Rickards
07-Sep (DarienTimes) — Only one person has ever been director of both the National Security Agency and the Central Intelligence Agency. That person is retired Four-Star General Michael Hayden. Recently I had the chance to talk to Mike Hayden on Capitol Hill. We were both there as part of a conclave to discuss the status of Iran-U.S. negotiations on uranium enrichment. We had a chance to talk one-on-one about my specialty, which is financial warfare, and the potential impact on investors.

…For investors, the implications of this new age of financial warfare are profound. Stock and bond markets have always been affected by wars. But the wars were fought elsewhere – stocks and bonds merely adjusted in price to the new state of the world. Today, markets are not bystanders; they are ground zero. It’s fascinating to meet brilliant military and intelligence officials like General Hayden who are rapidly absorbing the fact that wars are now fought in financial markets rather than on physical air, sea and land.

The military and intelligence communities are absorbing the new reality, but most investors are still behind the curve. Traditional stocks and bonds are digital assets that can be hacked, wiped-out or frozen with a few keystrokes. It’s important to allocated part of your portfolio to physical assets that cannot be wiped out in financial warfare. These assets include silver, gold, fine art, land, rare stamps, cash (in banknote form, not bank deposits) and other physical stores of value. For the portion of your portfolio that is in stocks, it is helpful to consider venture capital and start-up companies where your ownership is in the form of a written contract, not a digital account.

My conversation with General Hayden reinforced my already strong view that financial warfare is here and digital assets such as brokerage accounts and 401(k)s are in the line of fire.

[source]

PG View: We here at USAGOLD have always viewed it as an imperative to hold a portion of one’s wealth outside the traditional banking and financial services realm. Rickards’ op-ed drives home the point.

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Gold underpinned by haven bid, silver slides with commodities; Au/Ag ratio surges to nearly 7-year high of 79.14.

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Metals hit multi-year lows on global growth concerns, dollar rises

24-Jul (Reuters) — Metal prices hit multi-year lows on Friday after weaker-than-expected data from China and the euro zone raised concerns about global growth, but the U.S. dollar rose as a Federal Reserve rate hike was still on the table.

London copper fell to its lowest level since 2009 after a survey showed China’s factory sector contracted by the most in 15 months in July due to shrinking orders, fuelling worries over demand in the top metals consumer as stockpiles steadily mount.

The flash Caixin/Markit China Manufacturing Purchasing Managers’ Index (PMI) dropped to 48.2, below economists’ estimate for a reading of 49.7. It was the fifth straight month below 50, the level which separates contraction from expansion.

Euro zone business activity also started the second half on a less secure footing than expected, hit by Greece’s near-bankruptcy woes. Markit’s flash PMI fell to 53.7 this month from June’s four-year high of 54.2. A Reuters poll had predicted a more modest dip to 54.0.

While economies looked weaker in Europe and Asia, better-than-expected U.S. jobless claims kept the Federal Reserve on track for a rate hike in coming months.

The U.S. dollar was 0.3 percent higher against a basket of currencies.

[source]

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U.S. Mint sold out of silver coins due to strong demand

07-Jul (Reuters) – The U.S. Mint said on Tuesday it temporarily sold out of its popular 2015 American Eagle silver bullion coins due to a “significant” increase in demand, the latest sign plunging prices have spurred a resurgence of retail buying.

In a statement sent to its biggest U.S. wholesalers, the Mint said its facility in West Point, New York, continues to produce coins and expects to resume sales in about two weeks.

This is the second time the mint has sold out of silver coins in the past nine months – it ran out of 2014-dated American Eagles in November last year.

In 2013, the historic drop in precious metals prices unleashed a surge in global demand for coins, forcing the mint to ration silver coin sales for 18 months.

[source]

PG View: Further confirmation of the post below. We still have good availability on silver Eagles!

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‘It’s time to hold physical cash,’ says one of Britain’s most senior fund managers

20-Jun (Telegraph) — Ian Spreadbury, who invests more than £4bn of investors’ money across a handful of bond funds for Fidelity, including the flagship Moneybuilder Income fund, is concerned that a “systemic event” could rock markets, possibly similar in magnitude to the financial crisis of 2008, which began in Britain with a run on Northern Rock.

“Systemic risk is in the system and as an investor you have to be aware of that,” he told Telegraph Money.

The best strategy to deal with this, he said, was for investors to spread their money widely into different assets, including gold and silver, as well as cash in savings accounts. But he went further, suggesting it was wise to hold some “physical cash”, an unusual suggestion from a mainstream fund manager.

His concern is that global debt – particularly mortgage debt – has been pumped up to record levels, made possible by exceptionally low interest rates that could soon end, and he is unsure how well banks could cope with the shocks that may await.

He pointed out that a saver was covered only up to £85,000 per bank under the Financial Services Compensation Scheme – which is effectively unfunded – and that the Government has said it will not rescue banks in future, hence his suggestion that some money should be held in physical cash.

He declined to predict the exact trigger but said it was more likely to happen in the next five years rather than 10. The current woes of Greece, which may crash out of the euro, already has many market watchers concerned.

[source]

PG View: Spreadbury adds his voice to a number of high profile investors that have recently been advocating for precious metals ownership.

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