This week started with a severe markdown in gold and silver prices when markets opened in the Far East on Monday morning, taking gold down $12 to $1278 and silver only 12 cents to $19.03. The clue in this was the resilience of silver, which hardly moved: it was an attack on the gold price presumably designed to take out stop-losses. From there precious metals never looked back.
Physical silver demand was UP big in 2013. Ironically, physical silver production in Canada has dropped significantly in 2014.
Meanwhile, long time precious metals uber villain Jeffrey Christian is out with the 2014 CPM Group Silver Yearbook [priced at $150!!] which once again distorts the FACTS in service of the longtime Bankster narrative that silver in PHYSICAL form is abundant, easy to mine and of little real value.
David Morgan from Silver-investor.com joins the SGTReport to dissect the SILVER LIES and LIARS.
Canadian silver production declined significantly in the first two months of 2014 compared to last year. The huge drop off in production was due to the closure of two base metal mines and one primary silver mine in 2013.
Canada has lost two-thirds of its silver production in just twelve years.
While Canada isn’t a large global silver producer, it’s still a large percentage decline nonetheless.
As the Royal Canadian Mint continues to ramp up sales of its Silver Maples, the country will have to import more silver to make up for the shortfall in domestic production.
What goods or services would you offer and be willing to accept gold or silver as payment? How much gold and silver would you be willing to use as currency? If you are serious about breaking the system, operating outside of the system and leaving a murderous, criminal, liberty and life stealing system behind, these are the questions that should be in the fore-front of every waking moment.
They have been for me for several years now and the time has come to begin making a real move away from supporting people that do not support nor care for the well being of me and my family. The only thing the federal government is interested in from me is how much will my family support, with our labor and currency, un-Constituntional wars, drug money laundering banking cartels and indefinite detention for all that oppose their system. Beyond those items, they care not for me or you or anyone else except for the other scum that make up the upper part of the 1% gang.
Will you consider breaking away from the system and researching how you can do that? Will you at least look at how the state of Utah functions to determine if their system will work for your business? Will you make any effort at all to get out of the system other than reading articles and “buying” gold and silver? Until we, the gold and silver community, begin making real world efforts to break the system, the criminal elite are laughing all the way to the criminal bank that they own.
Gold is now extremely oversold, with emotional opinion in paper markets unanimously bearish. Traders tell us the 200-day moving average is well and truly broken and the next support level is $1260. However, when gold broke down through the $1280 level Thursday it rallied sharply to test the $1300 level in a one-day spike reversal.
In the past week, the Shanghai Futures Exchange suffered another large withdrawal of silver from its warehouse stocks.
The Shanghai Futures Exchange has had another 41 metric tons (1.3 million oz) of silver withdrawn since April 10th.
Silver inventories have declined to their lowest levels since the exchange started building its silver stocks in August, 2012.
If you were to base your decision-making on news alone, one is not making any money from buying gold. Does that mean one should refrain from buying it? The best answer comes from knowing your objectives.
If you want security from the out-of-control fiat spending of all Western governments, then yes, this continues to be the time to buy gold, [and silver]. In addition to the insane and unprecedented creation of “money out of thin air,” world-wide events are turning darker and darker. Gold and silver remain one of the best means for attaining financial peace of mind, and one of the best forms of wealth preservation. In this regard, price is of no consequence. Ownership is.
Stay the course.
In western capital markets there is a widely-held view that a deteriorating economic outlook will provoke a run from commodities into cash, so those who regard gold as only a commodity are bearish but have almost certainly already sold. The four billion Asians who own most of the world’s gold take a different view, having learned through experience that their currencies collapse instead.
This sums up the opposing forces behind the gold price. In futures markets the bets are in favour of shorting, while the Asians continue to buy physical. And this is why yet again, the London gold forward rate (GOFO) went sharply into backwardation last Friday when futures markets forced prices lower.
Prices for gold and silver sold off last week, with gold falling from a high of $1331 to a low of $1286 on Tuesday, and silver went as low as $19.22 at one point.
Silver’s open interest on Comex has been building and is now close to all-time highs at over 164,000 contracts. When the tide turns, silver should be the star performer.
For the past several weeks, we have shifted focus on what we see as the truer “story” of the PMs market, [Precious Metals]. Some may think we have gone off on an unrelated tangent talking about the elites and fiat currency. The PM community has maintained a relentless focus on how much gold is being imported by China, the diminishing supply of physical gold at COMEX and LBMA, and a host of other popular statistics that support what seems to be important for gold and silver adherents in their beliefs that should ultimately lead to higher prices.
The Law of Supply and Demand is what determines price. Not enough are looking at how the elites are able to distort that Natural Law and bend it to their will. It is the power they can exert, and distort, on any aspect of human life, at least in the Western world, that keeps gold and silver at unnaturally low prices. The more cogent issue is, for how much longer can elites keep their unnatural control over the natural forces of Supply/Demand?
The correction in the gold price continued this week, falling another $40 to a low of $1290 yesterday. In all, gold has retraced nearly half this year’s rise and silver has retraced most of its rise since end-January, with the gold/silver ratio increasing to over 65 times. However, this disappointing performance for precious metals masks some strong undercurrents in gold.
Current prices appear to be stimulating new sources of physical demand in a deeply oversold physical market.
At some stage gold and silver are set to rise strongly, but in the very short term paper traders remain in control.
David Morgan from Silver-Investor.com says, “The rush into gold is basically nation states, but the rush into silver is basically ‘the people,’ and it’s not just ‘the people’ of the U.S., it is ‘the people’ of the world. There will be a rush into gold and then silver like you have never seen before. This will be a global phenomenon. It wasn’t in 1979, this time it will be. You will either have it or you don’t.”
What are Morgan’s price targets? Morgan says, “I am on the record that silver will hit $100 an ounce, and that may be conservative.”
BrotherJohnF discusses his own picks and silver purchases in his latest Silver Update:
Picks & Pans
BrotherJohnF is back with his latest public silver update:
The general tone of financial markets is tilting perhaps towards deflation. China is trying to slow monetary growth, leading to revised GDP forecasts, and possibly the end of her property bubble. To this we add the Fed’s monetary policy, which on the basis of last week’s FOMC meeting appears to be less inflationary in tone. In the cliché of old, gold is climbing a wall of worry.
All this is essentially short-term noise, so long as central banks continue to rely on printing money to rescue the global economy and the financial system at times of stress. A deflationary crisis will always provoke an inflationary response, and that is what the primary trend in gold and silver is all about.
In this exclusive interview with Reluctant Preppers, precious metals advocate The Doc from SilverDoctors.com & SDBullion examines the essential points that must be considered when deciding whether NOW is the right time for silver.
The Doc discusses where we are at in the current secular bull market, market psychology, physical demand trends he’s seeing in the market, and what the final blow-off tops in gold & silver are likely to look like.
The Doc covers how he recommends strong your precious metals (storage MUST be allocated & segregated), discusses what lies ahead in 2014 for Gold and Silver, and explains why we should listen to Eric Sprott & Jim Sinclair’s outlooks for Gold and Silver in 2014.
Is NOW the right time for silver? SDBullion’s founder breaks down the PM market below: