“It’s been crazy – it’s been the best week since 2012. We’ve had people queuing round the block…



Buy Gold Eagle Coins and Bars at SD Bullion

Submitted by Michael Krieger, Liberty Blitzkrieg

First, let’s look at the improved fundamentals. Gold bugs will exasperatingly proclaim that fundamentals have been great for the past four years yet the price plunged anyway, so who cares about fundamentals? To this I would respond with two observations. First, large institutional investors and sovereign wealth funds have been anticipating a rate hike cycle for a very long time now. They didn’t know when, but they expected it. The fact that the gold bugs never believed this is irrelevant; what matters is that big money believed it, and it was perceived to be very gold negative. In their minds, this anticipated rate hike cycle would confirm that things were getting back to normal, and if things are normal you don’t need to own gold, right?

The problem is that this assumption is quickly being called into question. Sure the Fed hiked rates once, but it is starting to look more and more like a policy error. Meanwhile, other major central banks around the world are going in the opposite direction, toward negative rates. I am a huge believer in market psychology, and the psychology dominating the minds of most institutional investors over the past few years has been that things were slowly getting back to normal. This has weighed on institutional demand for gold in a big way, and been a meaningful factor in the bear market (manipulation aside). If this psychology shifts, the shift back into gold could be very meaningful.

While that backdrop is interesting in its own right, what may make the move into gold that much more explosive is the lack of alternative investments…

– From the February 3, 2016 post: GOLD – It’s Time to Pay Attention

What a difference a couple of weeks can make. The Telegraph reportsthe following:

BullionByPost, Britain’s biggest online gold dealer, said it has already taken record-day sales of £5.6m as traders pile into gold following fears the world is on the brink of another financial crisis.

Rob Halliday-Stein, founder and managing director of the Birmingham-based company, said takings today had already surpassed the firm’s previous one-day record of £4.4m in October 2014. 

BullionByPost, which takes orders of up to £25,000 on the website but takes higher amounts over the phone, explained it had received a few hundred orders overnight and frantic numbers of phone calls this morning. 

“The bullion market has been building with interest since the end of last year but this morning things have gone bananas,” said Mr Halliday-Stein. “Some London banks are placing unusually large orders for physical gold.”

London-based ATS Bullion added it had been inundated with orders for the past week. The firm has sold 4,000 gold bars and coins since February 1, a 40pc rise on the same period a year ago when it sold 1,500. 

“It’s been crazy – it’s been the best week since 2012. We’ve had people queuing round the block,” said Michael Cooper of ATS Bullion, a family run firm that trades online and also from an outlet in the West End.

But that’s just part of the story. As reported by the World Gold Council, the buying really started to pick up in the fourth quarter, courtesy of the Chinese and central banks. Reuters notes:

Buying by central banks as well as Chinese investors seeking protection from a weakening currency helped lift demand for gold in the final quarter of last year and the trend looks set to continue, the World Gold Council said on Thursday.

Chinese demand for gold coins surged 25 percent in the fourth quarter from a year earlier as consumers sought to protect their wealth after Beijing devalued the yuan currency. But stock market turmoil and a slowing economy knocked consumer sentiment and Chinese demand for gold for jewelry fell 3 percent from a year earlier, WGC said. 

Central banks have been buying gold to diversify their reserves away from the U.S. dollar and their purchases edged up to 588.4 tonnes last year, second only to a record high 625.5 tonnes in 2013, the report showed.

Central bank buying accelerated sharply in the second half of last year and jumped 25 percent in the fourth quarter, from a year earlier, as the need to diversify was reinforced by falling oil prices and reduced confidence in the global economy, WGC said.

Chinese demand for gold totaled 985 tonnes last year, followed by India on 849 tonnes. They accounted for nearly 45 percent of total global demand, with consumer demand up 2 percent and 1 percent respectively in those countries.

Think about the lack of gold buying from the U.S. relative to its global wealth and it becomes quite easy to see where the fuel for the next bull market will come from.

Meanwhile, on the supply side…

Global supply of gold fell 4 percent last year to 4,258 tonnes, partly because of slower mine production. Mining companies have scaled back since 2013 in a bid to slash costs and mine production shrank in the fourth quarter of 2015, the first quarterly contraction since 2008, WGC said.

For related articles, see:

GOLD – It’s Time to Pay Attention

4 Mainstream Media Articles Mocking Gold That Should Make You Think

In Liberty,
Michael Krieger

Buy Silver Eagles SD Bullion

  1. People are lined up Q’d up around the block you say.  It’s good that we happy few have been ahead of that crowd for years.  Oh where oh where is the smart money moving now?  If you ask me it’s more like time to buy some oats.  People will always need those you know.  You can put it inside cookies.  Lots of stuff.

    • @aj…or heirloom garden seeds.  1260.60.

      As that d head David Asmus said a few weeks ago when gold began to climb in the smuggest, derogatory  of manners, “Gold the investment of LAST resort.”

      What a jiz.

    • @2 oz.  I’m trying to be patient this year and start a bit later.  Planning better.  Especially, with things that go into my root cellar.  They need to be as late as possible so that my cellar has time to cool from summer.  I’m going to get some greens planted the first of March in some small hoop houses and probably some other stuff started as well.  Time to prune fruit trees.  Tough for them last year.  Could be good this year.

      I like the challenge of the seasons, it keeps me humble.

  2. Gentilemen…  I stacked early and kept my monthly allotment solid so to dollar cost average.  Not much time left as capitol controls are to arrive in America.  The average citizen should be shocked to pay $5 for a BigMac..Oops now they are over $5.  All that cheap oil and prices still went up.  Prepare for the financial then social hurricane cuz it not going to get better in your lifetime.  BTW where are the gov Trolls that are supposed to be posting here today?  Hmmm..    Banks will fail and unemployment may explode.   Be a Prepper or suffer.

    • Me thinks they’re in que.

      I know I was asked to be humble as the world crumbles… But I just gotta say:

      STOCK MONKEY! Wheres that smug grin now? Laughing as we stacked, but hold in our hands REAL metals, as your bank fluff evaporates, so will ALL that you hold dear!

      Fiat scams be damned!

      There will be “weak” rallies, as they attempt to calm the people, but this is it! (Digs out his fiddle) I guess all a man can do is pray, and play.

    • It might be at that but it wasn’t a significant concern for many stackers.  We already KNOW that we are right.  Vindication = everyone else finally knows it too.  😉


  3. Here is my prediction

    One more headfake high then a gargantuan smack down with every central bank throwing everything—expending all ammo—to crush silver. Then BUTTBHOF  (back up the truck, buyhand over fist)  Sit tight–be right.  We might get that Lehman silver crash similar to  2008

    Jump you F******   That one never gets old.

    Pay me my silver now is another all time fav’

    • AGXIIK.  I am on board 1000% with you.  I’m just hoping that buyers will have something to buy.

      Ole yeller was stressed and she was lying her ass off.  They got a round in the chamber and maybe half a mag.

      I’ve got a gift.  I can spend time with people for 10 minutes and read them like a book.  Actually, most here have it.  Your life, your family and your survival has to be on the #$%ing line before you wake up and start using it.

      “don’t go down without one helluva fight”







  4. @lastmanstanding  I am not seeing shortages like the bullfuffle we got Aug-Oct last year.  That was a huuuuuuuge head fake.  I bought heavy into the shortage but the prices were ranged from $13.70 plus markup over spot to $15 plus $2 over spot. Then the shortage disappeared

    This is not to say that we will not see a hard shortage but it does not seem to be evolving right now. I don’d get even a sniff of it.  If the price at nearly $16 plus 60 cents to $1 over spot, $2.45 over spot for ASE is indicative of prices that provide enough profit to keep the warehouses filled, then when the prices fall we might have a window to buy in the $14’s before the supplies get short for all.

    Bron at Monetary Metals out of Phoenix might find a different silver supply/shortage paradigm here in the US than the Queen’s controlled royal mint with its nearly infinite supply of silver

    Gotta give that hag a hat tip. She cannot get enough of money, paper or silver, with her face on it.

    • No shortages in my neck either.  Hundreds of oz. of Au and thousand of silver oz. a week out of my lcs…since mid Oct.  Shop really hasn’t had any problems with stocking…week or so on big orders and occasionally a couple weeks.

      Limited powder this time of year (except on the slopes!) but signed a huge project the other day…But I scrapped out 3 ozs.  for shits and giggles (once in a while I’ll stop by to get a report and a buy one or two, it’s empowering)…the giggle will come later when Ag is $1250.oo an oz.   All those little scores will be my reward for busting my ass, being productive and relatively kind to others during my life.

      The old hags days are numbered…she’s about to get bent over by all that is well and good.  😉

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