jeffrey christianThere’s a lot of shortsighted and incorrect silver analysis out there, so its imperative that you consider the information in this article. CPM Group just announced the release of their 2014 Silver Yearbook.  In their statement they implied that “Net Global Silver Investment” declined in 2013, while fabrication demand increased.
This sounds like a bearish statement for silver investors, but the reality is… silver investment demand actually INCREASED IN 2013, it did not decline.
CPM Group states that “Official Coin” sales were a record 136 million ounces in 2013.   How in the HELL, did investment demand FALL in 2013, if official coin sales increased 30-40 million oz??
It’s easy… you label the supposed surplus as SILVER INVESTMENT DEMAND… and poof.. you can show a declineLet me explain, I am gonna let you all in on a dirty little secret.

Massive Bucket ExcavatorIn a stunning admission, the German Government recently announced that its transition to Renewable Energy was, “On the Verge of Failure.”  This blunt statement was released by Germany’s Economic Minister and Vice Chancellor to Angela Merkel, Sigmar Gabriel at an event at SMA Solar… Germany’s leading manufacturer of Solar technology.
Germany decided to shut down eight of its Nuclear Power Plants after the disaster at Fukushima.  Unfortunately, renewable energy isn’t filling the void.  To make up the difference… in come the COAL MONSTERS.
This announcement is a DEATH-BLOW to the advocates of renewable energy such as Wind & Solar.

Shangahai Futures Exchange Silver Inventories April 18 2014Over the past two months, gold inventories at the Comex have risen slowly, while silver warehouse stocks continue to decline.  A total of 17.2 million ounces of silver were removed from the Shanghai (10.2 million oz) and Comex (7 million oz) exchanges since the end of February.
For some reason, a great deal more silver is being withdrawn from the Shanghai Futures Exchange.  In just one year, inventories at the exchange declined from 1,123 mt to current level of 258 mt.

U.S. Gold Bullion Exports to Hong KongThe figures are out and it looks like the United States exported a record amount of gold to Hong Kong in January- a stunning 57 metric tons!  Not only is this 3 times more gold exported than January 2013 (17 mt), it was 84% more gold than the record month set in August (31 mt).  As we can see, gold bullion is fleeing the U.S. and heading to the East.  Again… that 57 mt figure is just gold bullion.
As the West continues to play games with Monopoly money and Derivatives manufacturing, the East accumulates as much gold as it possibly can.  While Main Stream Media and its Banker cohorts release bearish $1,050 price targets for gold, the Asians and Indians smile as they build the largest amount of gold stocks in the world.

Shangahai Futures Exchange Silver Inventories April 18 2014In 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.

silver miningThere is an insidious Dark Side to the silver mining industry that goes unnoticed by the majority of investors and analysts.  Actually, I haven’t come across one miniyng analyst who puts out comprehensive data on this very subject for the silver mining industry.
According to my figures for 2013, the top primary silver miners suffered the lowest average silver yield ever.  That’s correct… another year of declining ore grades and yields.
For those analysts who believe the price of silver is heading lower in the future… the falling yields and increased costs will prove otherwise.

The distinguished analysts from Goldman Sachs have reiterated their 2014 forecast for gold to hit $1,050 by the end of the year.
Goldman has a serious motivation for throwing the paper price of gold under the bus.  You see… Goldman is by far the weakest and most vulnerable bank when it comes to its Assets to Derivatives ratio.  Not only does Goldman rank DEAD LAST compared to the other banks in this ratio, it does so with flying colors.

SRS8Due to the tens of $trillions of liquidity the Fed and Central Banks threw into the financial markets, the 2009 Global Depression was averted.  This allowed BAU- Business As Usual to continue in the world and mining sector.
If the financial system collapsed along with the broader markets,  global silver production would have fallen considerably in the years following 2009Furthermore, easy money and low-interest rates allowed the world to extract and consume expensive low EROI oil that it really could not afford.
The end of this decade will be nothing like the beginning.
  The Financial Industry will come under the weight of peak oil.  Paper assets will lose value and investors will be forced to move into physical assets to protect their wealth.
Gold and Silver will offer a WAY OUT to the PAPER PONZI SCHEME.  Unfortunately, only a few will see the light before it’s too late.

Comex silver Total Stocks March 10 2014Something interesting took place at the Comex and Shanghai silver warehouses over the past month.
Silver stocks at both these warehouses peaked at about the same time, March 10th.
However, for the past month, a substantial amount of silver has been removed from both warehouses.

The U.S. Treasury would consume nearly half of total mine supply if U.S coins still contained silver.
Prior to 1965, the U.S. Mint included silver in its coinage.  The U.S. dime, quarter and half-dollar consisted of 90% silver.  However, today they are nothing more than base metal slugs.
It cost the U.S. Mint $172 million to produce base metal slug Dimes and Quarters in 2013.  If these coins contained 90% silver, the cost would be a staggering $7.8 billion or 46 times the value.
Even though the world forgot the value of real money… they will soon be reacquainted.

fake gold 3_0The advantage of gold as currency has always been that it was very difficult to counterfeit. From the time when Archimedes screamed “Eureka!” in his bathtub because he had found a way to test the gold content of his king’s crown, it was known that gold was much denser than any other element known to man.
So, a good scale was all what was needed to discover if something was real gold, or it just glittered like gold.
But today, things have changed: we have something that ancient gold counterfeiters couldn’t even dream of: tungsten with a density almost exactly the same as that of gold, and that makes density measurements nearly useless.
Since gold costs almost a thousand times more than tungsten (ca. $ 40,000 per kg against about $ 50 per kg) you can understand that there is a lot of incentive for mankind’s inherent nature to play a role here: with a chance to cheat, someone will.

crack srsrocco collapseThe notion of future U.S. Energy Independence will seriously disappoint the market and American public.
This strategy of energy independence put forth by the energy industry and U.S. Govt may buy some time for our anemic economy and the U.S. Dollar, but will back-fire in a big way when overall oil and gas production declines much sooner than expected.

debt chicaneryMany precious metals investors are being deceived and they don’t even know it.
There is so much fraud, manipulation and deceit taking place in the economic and financial markets, its amazing the system hasn’t collapsed already.
However, there is another big problem taking place in the precious metal industry that has frustrated me to no end.  This is what I call the “Grand Deception.
Let me explain…

Total Eagle Sales FEB MAR 2010  to 2014The U.S. Mint sold more Silver Eagles in the past two months than it has ever in the same time-period in previous years.  February and March sales were so strong, they surpassed 2013′s by nearly 2.4 million.
According to the U.S. Mint’s most recent update, sales of Silver Eagles in March hit a record 5,354,000, which was almost 2 million higher than in March of 2013.
If we look at the chart below, we can see how much heavier the buying was this FEB-MAR compared to previous years:

Silver Eagle Update March 28 2014According to the recent update by the U.S. Mint, Silver Eagle sales hit a new record in March.  Sales of the U.S. Silver Eagle reached 4,476,000 at the end of the week.  Even though this surpassed the amount sold last year by over one million, the U.S. mint still has one final update to take place on Monday, March 31st.
If sales of the Silver Eagle top 500,000 on the last reporting day, total sales in March could surpass 5 million and overtake January as the highest monthly total.