Three reasons we’re one match away from a 5-alarm fire
We know the demand in the United States is low. We have been talking about abysmal US Mint Gold Eagle sales ad nauseum. Q2 data is coming in, however, and there are 3 immediate causes for concern. Follow along with the snip at the bottom for reference.
- US Demand was “exceptionally weak” in Q2. OK. But say that differently and hash out the meaning. If US Demand picks up somewhat, there are gonna be BIG problems for Team Gold Price Suppression. If we may don til foil for a quick moment, is it no coincidence that every day the stock market charges higher and higher? Ok. Take off the tin foil and think about it. If there is a limit to physical supply, which there is, the Fed and the ESF, with their ability to print as much money as possible to buy up as many stocks as possible, can contain price by pushing investors into certain asset classes over others. In other words, If a person walks into a pet store to buy a parrot, only to find a deal on parakeets that can’t be resisted, well then, we know which choice will be made.
- Chinese and Indian combined bar and coin demand up massively over Q2 2016. Demand is indeed robust, you just have to know where to look for it. If the market finds demand pick up in the US, see point 1. Things could dry up on the quick.
- Worldwide gold ETF inflows rise 56t on the first half of the year. And we have learned to not take the official numbers at face value. We are told they have increased this amount, but just because I write an extra $1,300 in my checkbook register doesn’t mean it’s there. Also on the heels of this point is that Europe DOMINATED the ETF demand at over 76% of inflows. Since we are showing massive increases in physical gold demand in the east over this time last year, see point 1 again. The slightest increase in demand from either North America or Europe and the retail market could get tight on the quick.
Those are only three points. There are many more, but any one of those could be cause for the central banks to lose control of their ability to contain. And these are World Gold Council numbers, and as such, we know their suspect if now downright statistically fabricated nonsense.
Which leads us to ask, If demand is picking up year over year, and they are admitting to 26% and 56% bar and coin demand from two countries alone, just how much data are they leaving out in order to not sound the 5-alarm fire?