BAR & COIN INVESTMENT: The Big Squeeze on Global Gold Production

Global Gold Production vs Bar & Coin Investment.png2As the Fed and Central Banks play around with silly words like “Taper”, the global financial system continues to disintegrate and is in much worse shape today than it was in 2008.  Somehow, the monetary authorities have deluded the public into believing that they are in control of the situation and things are going to be just fine.
Unfortunately, the system is rotting from the very banking core and without the continued propping up of assets the whole system would collapse.  We must remember, the leverage in these banks including all the garbage from the shadow banking system is so high, that a small 1-2% loss of assets would wipe them out clean to the bone.
The Fed & Central Banks Games will continue for a while.  However, fundamentals are beginning to get the upper hand…. and this has the monetary authorities quite concerned. [Read more...]

The Energy Factor to Push Gold to New Highs

The 32 to 1 gold-oil ratio will turn out to be too conservative when the world switches out of increasingly worthless paper assets and into the precious metals.  We have no idea of what the price or value an ounce of gold would be once the public tries to invest into a market that has an estimated 100/1 fractional reserve.
Very few investors realize how much energy factors into everything in the economy.  Gold and silver’s stored “Economic Energy” is derived from the EROI  energy ratio.  The falling EROI of energy is going to destroy a great deal of supposed wealth in the world.  The best way to protect that wealth in the future will be in physical assets such as gold and silver. [Read more...]

Shanghai Exchange Silver Drain Continues While JP Morgan Increases Eligible Silver 50% in 6 Weeks!

Comex Silver 90513JP Morgan transferred 1,437,887 ounces of silver from its Registered (dealer) to its Eligible (customer) inventory.  Including this last transfer as well as 3-4 others from Scotia Mocatta during the week of July 22nd, JP Morgan increased its Eligible Silver inventories (50%) from 20.2 mil. oz to 30.2 in six weeks! [Read more...]

BREAKING: Silver Miners Lose Half A Billion Dollars

Primary Silver Miners Q2 2013 Adjusted Income Break EvenIn an amazing change of events, the top primary silver miners went from making money in the first quarter of 2013, to losing over half a billion dollars in second quarter.  The majority of losses came from huge impairment charges due to much lower silver spot prices during the period.
If we look at the chart below we can see how three months and substantially lower silver prices can impact the bottom line in the top 12 primary silver miners: [Read more...]

Trouble Ahead for the U.S. Oil Boom

Seneca CliffThe much touted Oil Boom in the U.S. may be heading for serious trouble.
Even though the EIA – U.S. Energy Information Agency and the MSM have been putting out very optimistic forecasts for a growing domestic oil supply, present data and analysis shows that domestic production may indeed be hitting an “Inflection Point.” [Read more...]

Precious Metals Will Rise As the Economic Recovery Disintegrates

end badlyWhat we are witnessing here is the disintegration of the so-called economic recovery.  A great deal of effort by the FED to print, pump and prime the market seems to be losing steam.  The tide has now changed as the broader stock markets decline, the precious metals have decoupled moving higher making significant gains.
The U.S. economy has been nothing more than a series of bubbles ever since it transitioned out of manufacturing and into a service economy.
We now are at the very last and largest bubble in history — the U.S. Treasury Bubble.
With war on the horizon in Syria and the continued disintegration of the U.S. economy… things are about to get very interesting in the gold and silver markets. [Read more...]

Canadian Maple Leaf Sales Beat All Records!

1H 2013 Canadian Maple Leaf Sales BAccording to the information just released by the Royal Canadian Mint, sales of Gold & Silver Maples are beating all records. 
Silver Maple sales have increased 60% y.o.y (year over year) while Gold Maples are up a staggering 144%!
Not only are Canadian Maple sales surpassing its own previous records, Gold Maple Leaf sales actually out performed U.S. Gold Eagles during the second quarter of 2013!
Even though sales of official gold and silver coins have picked up dramatically, this is only a preview of the huge demand to come in the future as the public wakes up to the GREAT PRECIOUS METAL TRANSFER OF WEALTH.
[Read more...]

Future Silver Supply in Question as Mexico Oil Production Declines

Meixico Oil Production Chart July 2013The largest silver producing country in the world saw its oil production decline to the lowest level since 1995.  Mexico who produced 162 million ounces of silver in 2012 is slated to increase this substantially by the end of the decade… that is, if they have the available energy to do so. [Read more...]

Huge By-Product Silver Mine Loses Money

Penasquito Revenue vs EarningsOne of the largest by-product silver mines in the world recorded a loss during the second quarter of 2013.  This primary gold mine located in Mexico, produced nearly 24 million ounces of by-product silver in 2012.  If we compare this mine to the top primary silver mines in the world, it ranks as the third largest.
If the price of gold or silver fell to the levels that some of the more bearish analysts have forecast, it would mean the ENTIRE WORLD’S GOLD & SILVER PRIMARY MINING INDUSTRY would be losing serious money.
[Read more...]

US Mint Silver/Gold Eagle Sales Ratio Explodes to Staggering 500/1!

Ever since the big take-down in the price of the precious metals in April of this year, an interesting trend has taken place in the Gold & Silver Eagle market.  While demand for both coins remained strong in the first four months of the year, investors are now overwhelming purchasing more Silver Eagles — banking on much higher gains in silver than gold.
The gold to silver sales ratio was 19.5/1 in April, fell to 80/1 in July and so far in August it is a staggering 489/1!
Over the last month,  investors are overwhelming purchasing nearly 500 times as many Silver Eagles as Gold Eagles from the US Mint! [Read more...]

World’s Largest Silver Producing Company States Big Decline in Production

silver investment demand jumpsThe world’s largest silver producer saw its production decline substantially in the first half of 2013.  Many assume this decline came from Fresnillo, which is known as the largest primary silver miner in the world.  However, it was recorded by KGHM Polska Miedz, the largest by-product silver producer on the planet whose annual silver production was 41 million oz in 2012.
Silver production at KGHM Polska Miedz declined a whopping 17% from 653 tonnes in 1H 2012, to only 544 tonnes 1H 2013.
I believe we will see the global peak in silver production occur first in the base metal mining industry. [Read more...]

SRSrocco: Blunt on Gold, Silver, Energy, Analysts & the Economic Collapse

myelchreestSomething very foul is in the air.  I can sense it.  While it seems as if the fragile economic system of ours can be propped up, duct-taped, manipulated and held together for an indeterminate period of time, I believe things could get ugly… very quickly. [Read more...]

GET READY: The Great Transfer of Wealth in Gold & Silver is Coming

The U.S. Economy stands at the edge of the abyss while the financial MSM debates whether or not the FED will taper in the fall.  Silly analysts.  Serious cracks are beginning to appear in the economy while the precious metals have now seemingly decoupled from the broader stock market in a big way.
The Great Transfer of Wealth is Just Beginning.  Even though many in the East are buying gold and silver, those in the West are totally asleep at the precious metal wheel.
Only a fraction of the public are ready for what is coming.  Most are still totally invested in paper assets that have no future… and the future is now here. 

[Read more...]

Interesting Trends Taking Place in the Silver Warehouse Stocks

COMEX SILVER 72213BThere have been some interesting movements of silver at the Shanghai and Comex warehouses in the past several months.  Keeping pace with its downward trend, silver continues to be drained out of Shanghai Futures Exchange ever since the April 12th price take-down.
Traders may say these interesting movements of silver are “Just part of what typically occurs in the warehousing business.”
However, we all in the precious metal community realize there is nothing TYPICAL taking place today in the gold and silver markets. [Read more...]

SILVER MINING INDUSTRY: Unsustainable at Present Market Conditions

Top 12 Primary Mines Net Income Break Even Q1 2013The primary silver mining industry is not sustainable at present market prices.  Financial reports are starting to be released and by the end of the month we should have a pretty good idea on how bad the losses will be.
Since the beginning of 2013, silver is down 40%, gold down 23% while copper has only lost 14% of its value.  Silver is down nearly three times in percentage terms as is copper.  There is no accident that the price of gold and silver are down much lower than copper — as well as the other base metals such as zinc and lead.
The primary gold and silver miners are the real banks of the world.  Even though the current market situation for these miners is not positive, that will change in time.  There is no way that the primary silver miner industry can sustain itself at these current low paper prices.

[Read more...]