Many of the top precious metal analysts state that gold is the premium asset and insurance hedge during a financial collapse. We hear this time and time again. However, if we look at the data during the near collapse of the U.S. Banking and financial system in 2008, gold wasn’t the most sought after precious metal:
When the Dollar finally goes down in history as another failed FIAT CURRENCY, wealth will come by how many ounces of silver you own… not paper.
Since 2005, precious metals investors purchased a staggering 1.36 billion ounces of silver coins and bars.
If we look at the AMAZING chart below, we can see how much greater physical silver demand is over paper:
There are two charts every precious metals investor needs to see. The U.S. Mint is celebrating its 30 year anniversary producing Gold and Silver Eagles and if we look at the sales data of these two Official precious metal legal tender coins going back to 1986, we find some very interesting trends.
The U.S. Mint sold an average of 34.9 million Silver Eagles from 2008-2014 compared to 7.2 million from 1986-2007.
Investors purchased nearly 5 times more Silver Eagles a year after the Great U.S. Economic Collapse in 2008, than they did from 1986-2007.
In contrast, the U.S. Mint only sold an average of 50% more Gold Eagles from 2008-2014 compared to the yearly average from 1986-2007.
Essentially, the sales increase in Silver Eagles outperformed Gold Eagle sales by 10 to 1 since 2008!
Sales of U.S. Mint Silver Eagles started off strong this year with 3.6 million sold in the first two reporting days of 2015!
The U.S. Mint starting selling Gold Eagles last week with 51,500 ounces reported on the first day of sales. The U.S. Mint released the official first day of Silver Eagle sales on January 12th.
As we can see from the chart below, the U.S. Mint sold 2,958,000 Silver Eagles on January 12th, then another 656,000 on Tuesday, January 13th. So far this year, the U.S. Mint sold 3,614,000 Silver Eagles compared to 56,500 oz of Gold Eagles:
David Morgan joins the SGTReport to discuss the unprecedented demand for American Silver Eagles.
The question is, WHO is buying all of this PHYSICAL silver?
Because typically as the price of an asset falls, retail investors flee. Has JP Morgan itself been snatching up tens of millions of ounces of the precious metal in the form of silver Eagles as the criminal bank drives the price down via the COMEX? It’s what Ted Butler calls “The perfect crime”. Is he right?
Either way, those in the know win, because we understand that PHYSICAL silver is in very high demand – and its very, very precious.
When it comes to global silver demand growth over the past decade, the coin and bar investment category is the big winner. Unfortunately, the media tends to focus on growth of industrial silver consumption, while investment demand continues to take a back seat.
2014 global silver coin and bar demand may actually be closer to 230-240 Moz, than the 192 Moz figure GFMS forecast in the preliminary report.
Regardless, the huge increase in silver coin and bar investment demand over the past decade took place by less than 5% of the population… probably more like 2%.
What would happen to global silver coin and bar investment demand if only say 10-15% of the population became interested??
According to global market data from the top Official Mints, sales of Silver Eagles originate overwhelmingly from public retail investment demand rather than by one large bank… such as JP Morgan.
I say this in response to the allegation put forth by silver analyst, Ted Butler who believes JP Morgan purchased half of all Silver Eagles since April, 2011.
Ted Butler, who has made this claim over the past several months, does so again in his recent article, The Perfect Crime.
I wanted to provide a rebuttal to Butler’s allegation that JP Morgan was the large buyer of Silver Eagles because his opinion takes CREDIT AWAY FROM THE PUBLIC, and puts it in the hands of the BANKERS.
While Ted Butler provides excellent information on the silver market, I believe his opinion on this matter is incorrect:
A couple of weeks ago, a long time subscriber correctly pointed out that I seemed to be speculating more than usual in my conclusion that JPMorgan was the big buyer of Silver Eagles and had accumulated as many as 300 million oz of silver, including Eagles and bullion. The subscriber noted that I usually relied on hard core facts that could be documented and not on speculation.
As it turns out, I believe there are sufficient number of hard facts behind my speculation, but I had failed to point them out.
So let me present the facts, as I see them, that point to JPMorgan having amassed the largest physical silver position in history.
Amazingly, retail investors purchased 84 Silver Eagles in 2014 for every ounce of Gold Eagles.
It will be interesting to see how 2015 unfolds.
With all the geopolitical, financial and economic uncertainty… next year just may be GANG BUSTERS for the U.S. Mint.
In the wake of a MONSTROUS sales spike with silver’s dip to $14, Silver American Eagles sales have soared above 43 million oz in 2014, a new all-time annual sales record for the second consecutive year.
In addition, I believe sales of the 2015 Silver Eagles will be very strong in the beginning of the year. Today, the price of gold and silver are skyrocketing as the broader stock indices plummet. This may be the sign precious metal investors have been waiting for… A REAL BOTTOM.
If we truly seeing the MOTHER OF ALL REVERSALS, 2015 may turn out to be quite the pivotal year.
Another Conspiracy Theory Becomes Conspiracy Fact.
Well, well! Once again, all the “tin-foil” hat-wearing folks are looking like the smartest guys in the room, as an intriguing secret this week is revealed about a certain precious metal!
This is the biggest news of the week, yet nearly no one has mentioned it!
Now that we know this secret, it behooves us to use this knowledge to ask some very tough questions of the mainstream gatekeepers, like the World Gold Council, or the Silver Institute.
Investors should be furious, and hopefully, lawsuits will be forthcoming, now that this information is officially acknowledged!
In 2013 when the paper price of silver dropped off the proverbial cliff from $32 in February to under $20 by June, Indian silver demand increased dramatically.
Not only was 2013 a robust year for Indian silver imports…. at a staggering 5,819 mt, it blew away its previous record set in 2008 at 5,049 mt.
The U.S. Mint had to suspend sales on November 5th due to its inventory being totally wiped out.
The Royal Canadian Mint also put the sales of its Silver Maples on limited basis due to high demand as well.
If the Royal Canadian & U.S. Mint have difficulty now trying to meet demand for the 2-5% of public demand… what happens when the GREAT RUSH INTO GOLD & SILVER BEGINS??
Central bankers may never buy silver, but hundreds of millions of Indians soon will, and that is all it will take to launch silver’s value to a price which is many multiples higher than it is now.