The citizens of the U.S. & world are headed into a future that few are prepared for.
It will also turn out to be much worse than most realize as it will be unlike anything we have witnessed in the past.
Gold & Silver will become some of the most important stores of wealth and investments in the future. The U.S. Dollar will not be the safe-haven as Dent and many other analysts believe due to the fact that a Fiat Monetary System based on Compound Interest and Fractional Reserve need a growing energy supply to SURVIVE.
There is no PLAN B and very few are prepared for what is coming. The debate on Technical Analysis vs Fundamentals will seem very silly when the U.S. & World heads into the worst economic collapse in history.
As Ex-Assistant Secretary of the U.S. Treasury stated recently… when the price of gold and silver revalue much higher, there won’t be any physical metal to purchase. Trying to time the market for the best price, may be turn out to be a huge mistake. [Read more...]
In a surprising change from its inventory build over the past few months, JP Morgan had the largest one-day withdrawal of gold ever Friday. JP Morgan had 321,500 (exactly 10 metric tons) withdrawn from its Eligible category.
In just one day, JP Morgan lost 22% over its total gold stocks at the Comex.
It seems as if 2014 may be the year that the Financial System finally falls over the cliff. [Read more...]
As the U.S. economic and financial system continue down the road of self-destruction, there is an increasing amount of evidence that suggests the day of reckoning is fast approaching.
One such indicator is the amount of U.S. gold export scrap. At one point in time, the United States was exporting a great deal of gold scrap and waste, however it looks like its citizens are now…. tapped out. [Read more...]
Total U.S. gold exports picked up substantially in October after a low was hit in September at 37.6 metric tons. As the price of gold declined from $1,400 at the beginning of September to a low of $1,250 in October, gold exports increased to Hong Kong & Switzerland.
Total U.S. gold exports increased 31% from 37.6 mt in September to 49.4 mt in October.
2014 may turn out to be an interesting year for gold. There are so many inherent weaknesses in the present financial system, that anything could push it over the cliff. [Read more...]
After a brief pause in the decline of Comex Gold inventories, it looks like it has continued once again as there were several big withdrawals over the past few days.
Not only was there a large removal of gold from the Comex today, the Registered (Dealer) inventories are now at a new record low. [Read more...]
The U.S. and Global financial system is being kept alive by a highly leveraged paper system. The Fed’s recent announcement of a $10 billion taper has had the anticipated impact on the precious metals and bond market.
Even though I thought the Fed would never taper, the end result will be the same. As I have mentioned several times, Energy drives the markets… not Finance.
The so-called U.S. Shale Revolution is the only thing that is holding off the collapse of the global markets as it has brought on more oil supply (only temporarily), desperately needed by the world.
Unfortunately, it looks like the “Illusion of Sustainability” in shale oil production took a BIG HIT, as the forecasted decline rate at the Eagle Ford Shale Field increased double-digits in just one month. [Read more...]
Compiling all the figures for the past three years, the United States has a negative 171 mt of net gold supply so far in 2013. This means that the U.S. has exported 171 mt more gold than it has produced from its mining sector and imports combined.
In 2011, the U.S. had a positive net supply of 265 mt, but due to high demand for gold abroad this fell in 2012 to a negative 127 mt. And as you can see, U.S. net gold supply continues to decline — a negative 298 mt since the beginning of 2012. While it’s no secret to anyone in the precious metal community, the majority of U.S. gold exports found their way to Hong Kong and Switzerland.
When we realize that the majority of U.S. gold exports to Switzerland and the U.K. are probably making their way to the East…. we can assume that the overwhelming majority of the gold leaving the shores of the United States is most certainly ending up in China. [Read more...]
Many investors believe that a company can produce silver at its cash cost. If Hecla was producing silver at its $7.40 cash cost per ounce in Q3 2013, why in the living h*ll did they have a $8.4 million loss at a realized price of $22.22?
The top primary silver miners Break Even for Q3 2013 was $21.39 for the group. However, a great deal of cost cutting was done to get it down to that amount. I don’t see this as a sustainable figure over the longer haul if these companies want to replace production and remain healthy in the future.
I still believe the primary silver miners will be some of the best investments to own in the next several years. As the world’s fiat monetary system gets revalued in the future based on a physical assets, we are going to see a big move up in the value of gold and silver. Physical metal will be hard to acquire, so the miners will be the next best thing.
Mark my words…. [Read more...]
What happens when the Dollar finally collapses (AS ALL FIAT CURRENCIES DO) including the $100 trillion in paper assets? Where are investors going to store and protect their wealth?
Because the gold and silver market are so small, any move into the precious metals will make their values increase to insane levels.
The world is awash in ENERGY IOU’s masquerading as paper assets. Gold and silver are not Energy IOU’s, as they are bought and paid for ECONOMIC ENERGY. While this may be hard to quantify with data as the future is hard to predict, we can be rest assured that what happens going forward will be directly related to Energy values and physical assets and not paper trading based on Financialization.
Business as usual in the world will be over when the impact of peak energy is finally felt. Well, let me clarify that…. the market is already feeling the pain of peak oil, but due to the Fed and Central Bank monetary printing it is being masked.
What the h*ll happens when interest rates rise? The whole thing blows up in their face.
Silver and Gold will become great stores of value and excellent investments in the future due to Peaking of the Driver of the Economy — ENERGY.
Not only is there a battle going on between the East and West when it comes to increasing physical gold reserves, there’s also a gold production war taking place amongst these same nations.
The four Western gold producers (USA, Australia, Canada and South Africa) have already peaked in gold production while the top Eastern countries (China & Russia) are still in an upward trend.
The gold story will become more interesting in the future when the global financialization of debt with derivatives comes crashing down. Those who hold the most gold at this time, will be in much better shape than those who leased it out for a temporary paper gain.
It took a great deal of effort and several decades, but the Eastern gold producers have beaten their Western competitors by a wide margin.
As the world continues down the road of self-destruction via its highly leveraged paper financial markets, there’s a much more fascinating story worth looking at.
Hidden from the majority of the public and misunderstood by the so-called professional metal analysts, is the Real Story Behind Silver. [Read more...]