2014: The Year The U.S. Shale Gas Bubble Bursts & The Boom For Precious Metals?

Place your bets wisely because 2014 may turn out to be quite the pivotal year for the markets.  As MSM and Wall Street continue to push the hype regarding the Great U.S. Shale Boom, serious cracks are beginning to appear in the natural gas market.
Also, in another stunning withdrawal, JP Morgan had  an additional 321,500 oz  gold ounces removed from its vaults today.  Since last Thursday, JP Morgan has lost 44% (20 metric tons = 643,000 oz) of its gold inventories.
February is going to be a big delivery month with nearly 40 metric tons standing for delivery at the Comex. 
It will be interesting to see if the Comex has the ability to settle with physical gold… or if will they be forced to settle paper gold contracts with cash only.
At some point in time, we are going to see a DEFAULT on the Comex. [Read more...]

The Coming Economic Collapse Will Be Far Worse Than Most Realize

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...]

RECORD ONE-DAY WITHDRAWAL OF GOLD FROM JP MORGAN Drains 22% of Inventories!

empty-vaultIn 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  JP Morgan had 321,500 (exactly 10 metric tons) withdrawn from its Eligible category.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...]

Is The U.S. Running Out of Gold Scrap?

U.S. Gold Export ScrapAs 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...]

U.S. Total Gold Exports Up 31% In October 2013

2013 Total U.S. Gold Exports Jan-OctTotal 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...]

INSTITUTIONAL BUYING: The Coming Silver Game Changer

silver rushThe key to investing in silver is getting in before the big gains are made. The sector that will have the largest impact on future silver investment demand will be institutional buying.  According to Rick Rule of Sprott Asset Management, we may be witnessing the beginning stages of what could be a big move of institutional investors in the physical precious metal market.
The writing is on the wall.  The Fed & Western Central Banks are propping up the world financial markets by pumping in huge amounts of liquidity.  This policy has put into question the long-term viability of the Treasury & Bond markets.
Even though the East is participating in the Grand Paper Liquidity Scheme, they are forced to do so because the Dollar is still the global reserve currency.  However, as confidence in the Treasury & Bond markets begin to wane, we are going to see more institutions and retail investors rotate out of paper and into physical assets. [Read more...]

Big COMEX Gold Withdrawals & New Record Low Dealer Inventory

Registered Gold Inventories 10914 NEW RECORD LOWAfter 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 BIG QUESTION: Where Is The Price Of Silver Headed In 2014?

Many precious metal investors would like to know where the price of silver is headed in 2014.  After the huge take-down of the price of gold and silver in 2013, investors would like to know if silver has finally put in a bottom and is getting ready for a new move higher this year.
I don’t believe in Technical Analysis in a rigged market.  I am quite surprised professionals still pay attention to this meaningless metric.

I am not quite sure of where the price of silver will go in 2014.  There are just too da*n many variables.  We could see an explosion in the price if we do get the “RUMORED” Global currency reset.  We could see a sharp move higher in the first quarter with a retrenchment and then a move higher by the end of the year.
Whatever the price movement, I doubt we will see much lower prices.
That being said, I have not invested in silver for short-term gains I believe in holding for the longer term.  Gold and Silver will be some of the best investments to own in the future… it just takes a great deal of patience to realize the gains. [Read more...]

Silver/Oil Ratio Indicates Silver To Explode to New Highs!

Silver vs Oil Price & Ratio 1981-2000You can buy more than three times the amount of silver compared to oil today than you could during the decade of the 1960′s.
The Central Banks and Monetary Authorities have done a fine job bamboozling the public in making sure that gold and silver remain as silly investments only the fringe in society would purchase and hold.
When the price of silver reached $35 an ounce in 2011 it wasn’t a parabolic move higher, rather it was behaving more like a balloon being released from far below the surface of the water.  The coming explosion in the value of silver will be a shock to the world.
If we were to value silver today compared to its oil ratio during the following periods, this would be the result: [Read more...]

Silver Price To Head Higher As Cost of Production Forms A Base

Dow to Silver Ratio Dec 2013The huge rise in the price of silver since 2005 has been due to Investment, not Industrial Demand.  The price of silver remained below $5 since the late 1990′s even though there was a silver supply deficit.
The only way to destroy the price of silver is to crush INVESTMENT DEMAND….. period.  Hence, the work of the FED and member banks.
Many precious metal investors today are troubled by the current weakness in the price of silver and are concerned that prices could fall much lower.   While the price of silver could continue to fall a bit from here, it’s more likely we will see a higher, rather than a lower trend in 2014.
If we look at the table below, we can see the total three-quarters of financial metrics from the top 12 primary silver miners: [Read more...]

Eagle Ford Shale Decline Rate Shoots Up A Stunning 10% In One Month

Eagle Ford Dec 2013 DeclineThe 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...]

Record U.S. Gold Bullion Exports Head to Hong Kong & Switzerland

2013 Top 3 US Gold Bullion Exports newCompiling 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...]

SRSRocco On Why Primary Silver Miners Can’t Be Sustained With Silver Prices Under $20

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 the H*ll Happens When Interest Rates Rise? The Whole Thing Blows Up in Their Face!

blow up in face bombWhat 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.
[Read more...]

GOLD PRODUCTION WARS: The East Slays the West

China Gold ProductionNot 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.
[Read more...]