silver miners

With the last remaining company finally releasing their year-end results, my top primary silver miners lost a combined $1.9 billion in net income in 2014.  While two-thirds of the group reported significant write-downs (impairments),  two of the largest companies suffered the highest losses:

The Western U.S. Dollar based monetary system is headed for a train wreck.  This isn’t a matter of IF, it’s a matter of WHEN.  Investors lulled to sleep by the low paper price of gold are losing out on the best buying opportunity of a lifetime.  The precious metals will be one of the best insurance policies to own when the U.S. Dollar finally catches on fire and burns down the entire system.
There are several gold theories circulating around the alternative media on how the global financial situation will play out going forward.  While it’s impossible to really know how events will turn out in the future, there are some theories that I can guarantee, WILL NOT TAKE PLACE.
I will not get in to the particulars in this article, but rather provide two charts and a bit of common sense that will destroy the FAULTY GOLD CONSPIRACIES.

Bakken Peak JEANVery few Americans realize just how bad the domestic energy situation will become in the next several years.  While U.S. shale oil production has surged over the past five years giving Americans a false sense of energy security, the next five years will certainly destroy this myth once and for all.
The United States will be in serious trouble by the turn of the next decade.
As shale oil production declines, the U.S. will have to import more oil.
However, the U.S. Dollar may lose a great deal of its world reserve currency status as more countries move to alternative trade systems with the BRICS countries.

How will the U.S. purchase oil with worthless Dollars if no one wants paper Dollars anymore??
Got gold and silver?

Fed monkey

If the “markets” are rigged and economies divorced from true market valuations, then what (if anything) could trigger a recoupling of reality to the record setting flashing numbers presently offered by the “market” facade? 
My best guess is decelerating global credit and debt creation (and a rotation from private to government debt creation) is the harbinger progressively pushing the financial rigging to its ludicrous conclusion
The rigging isn’t likely to stop, but the loss of belief and confidence in these numbers (along with economic mismanagement based on these faulty signals) is soon to force market resets and revaluations of everything.
This will culminate in a global depression of unknown duration and depths until balance is restored.

There is this silly notion that the United States will become energy independent in the next several years, thus making it unnecessary to import oil from Middle Eastern countries such as Saudi Arabia.
While some fairy tales in life may come true…. U.S. energy independence isn’t one of them.

ammo2
Play

Expert PM analyst Steve St. Angelo (SRSRocco) joins the show this week discussing: 

  • How long can the bankers manipulate the price of gold & silver? Can it continue another decade or two?
    Steve explains why the price of silver is poised to rise EXPONENTIALLY
  • Steve explains why When the Light Bulb goes on (for global investors), you’re going to see see a MAD RUSH into precious metals, and crazy prices! 
  • With the oil price cut in half over the past 6 months, is Peak Oil a Myth of the past, or is it closer than ever- and what are the implications for gold & silver?
  • Steve believes the numbers indicate that Silver investors are becoming complacent in 2015- the time to buy insurance is BEFORE your house burns down and its TOO LATE!
  • We’re going to see convulsions in the market- by 2020 the world will be a totally different place, and it will be difficult to obtain physical precious metals!
  • “What happened to Ammo will happen to Gold & Silver!”

The SD Weekly Metals & Markets With The Doc, Eric Dubin, & SRSRocco is below: 

gold crash

The future of the U.S. Treasury Ponzi Market will likely unfold in one of two scenarios.
Unfortunately, both end up with a crash of the U.S. economic and financial system
Which is precisely why it is important to own physical precious metals before this occurs.

Mexico Silver Production 2013 vs 2014Mexico is the largest silver producer in the world.  The only two countries that come remotely close to Mexico’s number one ranking are Peru and China.  However, these countries trail Mexico by more than 50 million ounces.
According to the INEGI, Mexico produced a record 186 million ounces (Moz) of silver in 2013, but this declined to 184 Moz in 2014. 

Fiscal Year 2014 Gold vs Silver Eagle SalesThe U.S. Mint just released its FY 2014 Annual Report and the total Dollar sales of Silver Eagles surpassed Gold Eagles by a wide margin. 
Total sales of Silver Eagles were $850 million compared to $693 million in Gold Eagle sales. 

Global Gold Value In The Ground Per Dollar of ExplorationThe world is heading towards an economic and financial collapse of epic proportions.
ENERGY drives the markets, not FINANCE.  Finance is supposed to steer the economy in a straight line on the road, not full speed over the cliff.  Without a growing energy supply, there would be no U.S. Dollar Fiat Monetary System.
That being said, the global gold mining industry is now in serious trouble as the current low market price impedes exploration which would guarantee future production.  How bad is it? 
Well, let’s look at the following chart:

lets get physical

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:

BRICS vs WEST Gold Demand 2014 NEWESTThe U.S. and West are in serious financial danger as the highly leveraged debt-based fiat monetary system becomes weaker each passing day.
You wouldn’t know this was the case by the way the paper price of gold and silver are trading over the past few weeks. 

It doesn’t seem to matter the disaster ready to unfold in Europe if (probably when) Greece makes its exit.
Even though the PAPER RIGGED market shows another big sell-off in the precious metals this week, we can certainly guarantee the BRICS are adding more gold to their holdings.  
The markets will continue to price gold and silver as if they were second class assets, only good enough for 1-2% of the fringe population to acquire.
Unfortunately for the 98%, time is running out for the grand illusion called the highly leverage derivatives FIAT MONETARY REGIME.

When the great MONETARY RESET finally arrives, it will probably be much worse than most realize… 

Gold Eagle vs Silver Eagle Sales 1987-2014While GOLD is known as the King of monetary metals, SILVER will win the crown as the best performing monetary asset in the future.
From 2008 to 2014, the rate of Silver Eagle to Gold Eagle sales jumped to 41 to 1.  What is even more amazing than that statistic, is the Silver to Gold Eagle ratio in 2014.
  Investors purchased 84 Silver Eagles for every Gold Eagle oz in 2014.
Now, if we look at the current demand for U.S. Mint official coins, Silver Eagle vs Gold Eagle sales in February are a staggering 213 to 1:

Oil Production Per Drilling Rig 2014If it wasn’t for the United States Triple “A” Credit Card Rating, its economy would have collapsed years ago.
Why?  It’s low 4,577 barrels per day of oil per drilling rig is not a sustainable EROI model.  Basically, the U.S. economy could not sustain itself on its own energy production without exploiting the world by exchanging PAPER GARBAGE TREASURIES for real goods and services.
The day is approaching when the producers of the world such as the BRICS countries will no longer take paper IOU’s for goods and services.
The falling EROI is the key fundamental factor that shows the U.S. Empire is indeed in serious trouble:

US Silver Eagle Sales 1986-2014There 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!