freefallWith the results for 2013 finally in, the top gold miners average yield fell to the lowest level ever. 
This is a surprising development considering that the average price of gold dropped to a low of $1,411 in 2013. 
Normally when the price of gold falls, gold miners switch to higher grades to remain profitable.
However, the top five gold miners’ average yield declined another 5% in 2013

“Who are these Pilgrims? I have since made a study of them. Their organization is one of immense power, and just now they hold our country in the hollow of their hands. They control the banks, they control the press and can sway public sentiment by means of their corrupt news services from one end of the country to the other. They are determined to force this country into war.”

U.S. Domestic Gold Mine Supply JAN-APR 2014In the first four months of the year, the U.S. exported more gold to Hong Kong than it produced from its domestic mining industry.  Actually, gold shipments to Hong Kong were 29% higher than total mine supply from Jan-Apr.  That’s a pretty big deal when we consider U.S. gold production ranks third in the world.

Top 4 Global Gold Equivalent ProducersAccording to new information obtained from a bank analyst, data provided to the public is intended to distort reality. 
I sat down with the analyst who shared some interesting insights on how gold and energy data are manipulated to mislead the public.
Things will continue to get more and more BIZARRE in the world financial system.
That is why it is wise to own physical gold and silver. 

The DEATH OF THE DOLLAR is coming… we just don’t know the exact date.

Rogue 1In the middle of this jungle of jaundiced analysis…and jumble of misapplied facts… there is an elephant in the room.
A golden elephant – with enough time and patience, it’s mysteriously invisible presence in plain sight will be made apparent to all.
The theme of China’s(or if you like –Asia’s) growing gold purchases has taken on a life of its own in the gold community…  the jist of which is that every ounce of gold which goes from west to east serves to strengthen the price of gold in western markets, and ultimately, bring about that hallelujah moment that westerners have been impatiently waiting for – when the POG skyrockets… to the sound of goldbugs popping champagne corks!
This post is about correcting that narrative… so that western precious metals investors can be better served, by more accurate information.

As the MSM, Wall Street and various so-called analysts waste time focusing on worthless and insignificant data, the price of silver is positioning itself for the coming TWO-STAGE RALLY.
The majority of the precious metals analysts discuss the revaluation of silver as it pertains to the amount of fiat currency in the system.
While this is a good determination (from past historical guidelines), it only deals with one part of the overall equation.
The second and maybe the more important factor… is the destruction of “PAPER CLAIM CHECKS” on physical assets.

gold market tippingWe are heading towards a tipping point in the global economy and broader stock markets.
Monetary Malpractice by the Fed and Central Banks created an economic system of, “Delusional Markets.”
Nothing is as it seems, and we continue to kick the can down the road.
Furthermore, U.S. Treasury sales are no longer being bought by foreign buyers and it looks like we are approaching Net Selling.  Which is the reason the Fed is forced to create more liquidity to continue purchasing U.S. Treasuries.
However, LIQUIDITY IS NOT WEALTH OR COLLATERAL.

U.S. Gold Exports Jan-Mar 2014In the first three months of the year, Hong Kong received half of total U.S. gold exports.
This was an interesting change of events as Switzerland held the number one spot as the largest importer of U.S. gold during the same period in 2013.
According to the USGS Gold Mineral Industry Surveys, Hong Kong received 78 mt. (metric tons) of gold from the U.S., while Switzerland came in second at 51 mt.  
If we look at the chart below, we can see the breakdown of U.S. gold exports for the first quarter of 2014:

The EndThe biggest flaw in Trader Dan Norcini as well as many other analysts who believe that the markets ARE NOT RIGGED, is that they fail to understand the global energy situation.    The value of most STOCKS, BONDS and PAPER ASSETS are derived from a growing economy, which is based on a growing energy supply.
As the global oil supply peaks and declines, the value of most paper assets will decline.
The only way to protect wealth at this time will be in physical assets such as GOLD & SILVERIt was the SIPHONING of investor funds into paper assets such as derivatives, options, stocks  and bonds that caused the REAL MANIPULATION of the precious metals market.

Peak Oil will destroy gold and silver manipulation by DEFAULT.

Collapse Of Roman Silver Monetary SystemThe precious metals will offer one of the best safe havens as the world enters into the next paradigm… “The Death of the Business Cycle.”
Unfortunately, very few analysts, economists or investors realize the darkness that lies ahead.
Gold and silver are more than insurance…. they will be the wave of the future, and the future is now here.

Gold vs Oil Price & Ratio 2000-2014Currently, the price of Brent Crude is trading at $113.35, while gold is at $1,275.   This is an embarrassing 11.2 to 1 ratio…. thanks to the manipulation by the Fed and member banks.
Based on the historical gold/oil ratio, The BASE PRICE of gold should be over $2,000 an ounce.
I say base price because this just brings the value of gold back inline with its ratio to oil.  This DOES NOT INCLUDE the huge invrease in monetary printing, debt and derivatives which have funneled a great deal of value away from the King Monetary Metal.
Once we include these factors, that base price of $2,000 should be higher by several orders of magnitude.
We can plainly see that the price of gold should already be north of $2,000… if it wasn’t for the continued manipulation by the Fed and Central Banks. 

SRS8The top 12 primary silver miners sold an additional 5.8 million oz of silver this quarter compared to Q1 2013 for a net loss of $78 million in revenue ($550 million – $472 million = $78 million)… whereas by-product revenue increased $105 million.
This resulted in the estimated break-even price for the top 12 primary silver miners of $19.78 or $4.27 lower than the average for full year 2013. 

Top 4 Gold Producers Ore Grading ChangeIn order to survive in a manipulated low-price environment, the gold producers resorted to “High-grading” some of their mines.  By high-grading, the mining companies target higher ore grades in their operations to produce more metal while lowering costs.
Unfortunately, this short-term band-aid comes at a cost.  When the mining companies choose to high-grade they are left with lower quality ore in the future that is more expensive to extract.
The top four gold miners overall production remained virtually flat while instituting their costly short-term solution of high-grading.  In utilizing high-grading, problems will only get worse in the future for these top gold mining companies.  Unless the price of gold rises considerably in the next few years, a lot of gold will remain in the ground… too expensive to extract.