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.

Precious metal currency was a fundamental factor that kept together the Roman empire and gave to the Romans their military power. But the Roman mines producing gold and silver peaked in the first century CE and the Romans gradually lost the capability of controlling their resources. In a way, they were doomed by “peak gold.”

U.S. Gold Scrap Exports 2007  to 2013In just the past two years, U.S. gold scrap exports declined an amazing 80%.  What’s going on here?  Is the U.S. starting to run out of gold scrap?  Either the U.S. is running low on gold scrap to export or the market is refining more to fill the huge amount of domestic and foreign bullion demand.
U.S. gold scrap exports fell off a cliff in the past two years.  I believe the majority of Americans have already sold whatever gold scrap they had and are now for the most part… tapped out.

U.S. Gold Imports vs ExportsSo where is China getting all of its gold?  One of the large sources turns out to be the United States.  The U.S. experienced another record year of net gold exports in 2013.  Not only were gold exports at record levels, imports into the U.S. fell nearly half compared to 2010.

If we look at the chart below, U.S. gold exports in 2010 were 383 metric tons (mt), however by 2013, they increased 81% to 692 mt.  In addition, U.S. gold imports fell 48% from 604 mt in 2010 to 313 mt in 2013.

gold standardAs the U.S. economy continues to disintegrate, increasing numbers of investors will be forced to move out of paper assets and into physical gold and silver to protect their wealthAt first the move will be slow, but as Americans wake up from four decades of fiat monetary amnesia, it will turn into a torrent.
Unfortunately, there won’t be much in the way of physical precious metals to “GET” at this time, as the clever Chinese and Easterners already cleared most of the shelves.
Currently, Americans are invested in the largest Paper Ponzi Scheme in history.  They hope and pray that the DIGITS in their accounts will be good as gold when they retire.  Unfortunately for them, the only thing that is good as gold….. IS GOLD (or silver).

However, Americans will still be shocked and stunned that they didn’t see this big transfer of wealth coming….. and there is a good reason for that. 

Indian Silver Imports 2007 to 2013 ActualIt looks like the official sources grossly underestimated the amount of Indian silver buying in 2013.  When the Indian Government put restrictions on gold imports in 2013, their citizens switched to buying silver.
Thomson Reuters GFMS estimated that total Indian silver imports would be 5,200-5,400 metric tons in 2013.  However, Koos Jansen at InGoldWeTrust, recently published an article stated that the Indians actually imported 6,125 metric tons of silver in 2013.
If we had record silver imports by the Indians in 2013 and continued purchasing of every Silver Eagle allotted by the U.S. Mint… what happens to physical silver buying when things really get BAD IN THE FINANCIAL SYSTEM & ECONOMY??

Top 6 Silver Mining Companies Produciton NEWEven though 2013 was a great year for physical precious metal demand due to manipulated lower paper prices, the top silver mining companies suffered a decline in overall production compared to 2012.  Of the top six companies, the largest four stated declines, while the two smaller producers increased mine supply slightly.
The chart below shows the change in production year-over-year from the top silver mining companies:

*Editor note: With sentiment near all-time lows for the entire bull market, we thought it apropos to bring back SRSrocco’s viral, comprehensive FUNDAMENTAL ANALYSIS on the forces that will push silver over $100/oz. 
PLEASE CHECK YOUR EMOTIONS AT THE DOOR AND REVIEW THE FUNDAMENTALS!

There are tremendous forces at work that will push silver over $100 an ounce.

According to the  2012 World Silver Survey, total global silver investment demand has risen from only 31.6 million oz in 2002 to a staggering 282.2 million oz in 2011.  As world economic fiat based monetary system continues to deteriorate, investors are taking delivery of physical silver rather than holding on paper contracts that may not be backed by any metal whatsoever.

This has created a run on the LBMA… the largest metal exchange in the worldOnce the world ‘s liquid energy supply starts its inevitable decline from its current plateau, annual silver metal production will decline as well.  There will be no silver glut and there will be no silver available when the world’s fiat monetary system finally dries up and blows away.
Get ready.  The forces for pushing silver over $100 have just begun.

U.S. Mint Silver  Gold Eagle Ratio updateIn an interesting irony, investors are purchasing record amounts Silver Eagles while the top primary silver miners continue to lose money.  Not only did investors purchase the most Silver Eagles in the month of February compared to previous years, the silver/gold ratio is off the charts.
This year, investors have purchased 3,750,000 Silver Eagles compared to 31,000 oz of Gold Eagles.
This is a staggering 121 to 1 ratio, shown in the chart below:

While gold is the king monetary metal, silver will turn out to be the king precious metal performer.  Currently, gold is stealing the show as the East (China) continues to consume more than total world gold production.
However, silver will surprise the markets in the future as overwhelming demand will outstrip supply in a big way.
The key factor that will drive up the price (value) of silver much higher than gold in percentage terms, will be its affordability.  As the price of gold heads back above $1,500 and silver to $30, an individual can buy a heck of a lot more silver than gold.
As the public and market are lulled back to sleep (presently) on the value of silver, there will come a time in the future when it will be impossible to acquire a single ounceonly at much higher prices.
Silver Will Be The King Precious Metal Performer.

gold & silver sold outThe U.S. Mint updated its sales figures today… and it was another whopper.
Yesterday, the U.S. Mint sold 825,500 Silver Eagles which was about two-thirds of the weekly allocation.
The total Silver Eagle for February is now 3,671,500.
Not only has this been another excellent month (so far) for Silver Eagle sales, it is an all-time record for February!

U.S. Mint Silver Gold RatioAs sales of Gold Eagles remain subdued, the market continues to purchase every available Silver Eagle from the U.S. Mint.  Since the beginning of the year, the U.S. Mint has sold its Silver Eagles on a weekly allocated basis.
 in the past several weeks, 80-90% of the total allocated weekly Silver Eagle amount was sold on the first day of the week!
The U.S. Mint just updated its sales figures Monday, with an astonishing 744,500 Silver Eagles sold in one day:

end badlyThings in the U.S. will begin to fall apart in 2014 as the energy production begins to peak and decline impacting supplies and price in a big way.  This will cause a profound shock to the Stock, Bond and Paper markets.
Precious metals will be some of the best and safest assets to own during this “Energy Induced Collapse” period.
As Wall Street and the financial media carry on business as usual, the underlying foundation of the U.S. economy continues to disintegrate.  Very few Americans realize we have past the point of no return.  This holds true for many of the precious metals investors.