Something has seriously changed in the gold market this year and I believe that most investors are unaware of how explosive this shift could impact the price of the yellow metal going forward.
Not only did the price of gold jump 19% in the first two months of the year, the flow of physical metal into the Mainstream Gold ETF’s and Funds surged into record territory.
This has put severe pressure on the gold market, a huge topic discussed in detail in this report.
When Lyndon Johnson signed the Coinage Act in 1965, the public removed the majority of silver coinage from circulation in a very short period of time.
The same thing is happening with gold.
While the West prints money or digits to allow the U.S. Dollar based fiat monetary system to continue, the West’s gold heads east.
The collapse in U.S. oil production along with the disintegration in value of most paper assets will cause SILVER INVESTMENT to be finally based on its high quality store of value properties, not its historic commodity based mechanism. It will no longer matter what the price of oil is. The value of silver will rise as investors move into it to escape the ongoing collapse in paper assets values.
Trading volume for silver has been increasing in a steady fashion since 2002.
Even though silver enjoyed a huge price spike and correction (2010-2013), its overall trend is still higher… so is its trading volume.
Thus, the Silver Chart shows a healthy combination of increased price and trading volume. However, the Dow Jones Index has the BEST & WORST trading volume activity in the chart below:
This will put total Silver Eagle sales for the first quarter at 15 million…the highest ever.
Central bankers have been on a massive Gold Buying Spree led by Russia and China. One must remember that not only is Putin ex-KGB, but he is also an economist and holds a black belt in judo. Judo teaches you to use your opponent’s momentum to defeat him or her, and that appears to what Putin is doing.
The chart below illustrates how Russia’s reserves of Gold have soared over the years. Putin is planning for a day when the U.S is not the dominant power anymore. When the dollar is finally dethroned, the end will not be pretty.
This is a substantial decline in productivity from the world’s largest mine in Mexico that starting production in 1824.
It’s no secret to the precious metal community that silver is one of the most undervalued assets in the market.
Most physical silver investment is being held TIGHTLY and will not enter back into the market because its owners realize the Global Financial System will get flushed down the toilet when the Central Banks lose control.
Fortunately for precious metals investors, this is only a matter of time…
There has been a dramatic upswing in the volume of silver eagles moving through the U.S. Mint that is in direct correlation to the “financial crisis” that began in 2008 and has yet to subside. The volume of American Silver Eagles almost doubled year-over-year from 2007 to 2008 and has doubled again beginning in 2011.
In four short years the volume of American Silver Eagles has experienced a four-fold increase.
What is driving this panic into physical silver eagle coins?
According to the CME Groups recent release, Comex Registered Silver inventories reached an ALL-TIME low yesterday.
The Registered Silver inventories are those stocks ready to be delivered into the market. Looking at the data put out by Sharlynx.com, Registered Silver Inventories haven’t been this low going back to the 1970’s…
There’s been a SIGNIFICANT trend change in the gold market and it has the Western Central Banks worried.
To get an idea just how significant the trend change of net physical gold investment has been over the past several years, I created the chart below:
In just the past four years, the total U.S. gold supply deficit equals all the U.S. Gold Eagle sales for the past 28 years. That’s a one hell of a lot of gold.
…This leads me to believe someone with BIG POCKETS is acquiring silver while the market is lulled to sleep.
The day when the market price of silver goes over $100 with no sellers is coming.