Gold and Silver Crushed On BLS – Numbers GOOSED For Hillary?

Source: Nanex
Source: Nanex

With Gold and Silver Prices Hammered Below Critical Support at $1350 and $20 Friday, We Dissect the Big Moves For You, Discussing:

  • Gold and Silver Prices SMASHED On Friday’s Huge Job Numbers 
  • +255k Jobs in July- BLS Numbers GOOSED For Hillary? 
  • US Mint Sells Only 75,000 Silver Eagles First Week of August – Physical Silver Demand DEAD? 

The Doc & Dubin Break Down All the Market Action & Look Ahead at What’s Next for Gold and Silver Prices:


Silver Rounds SD Bullion

The Atlanta Fed’s “GDPNow” forecast model is now targeting 3.8% GDP growth.  Lunacy.  This model’s swings over the course of the last 18 months are downright schizophrenic.  The geniuses at the Atlanta Fed have managed to generate a track record with about 10 major reversals  over the course of the past 18 months, where the swings following these inflection points exceed 200 basis points!  This isn’t an economic forecasting model.  It’s a carnival act and, unlike the first quarter of 2015, when people took the Atlanta Fed’s model more seriously because the model actually ran counter to the other Fed models painting nothing but unicorns and rainbows, this week’s GDPNow forecast release pretty much seals the case: the Atlanta Fed should rightfully be accused of politicizing their data ahead of the 2016 election.
With gold prices smashed back below $1350 Friday, demand for gold bullion such as Gold Maples , Gold Eagles , and Gold Buffalo coins is spiking once again.
SD Bullion has also seen continued strong demand for bars, moving through over 500  1 oz gold bars over the past week.
In Silver:After a slow week throughout the industry, retail demand returned with a vengeance Friday as silver prices dipped back under $20. Wholesale premiums on 90% Junk Silver Coins declined another .20 this week, indicating that supply continues to exceed demand over the short term. 

What the heck is going on with Silver Eagle sales?  The US Mint announced the end of Silver Eagle allocations in July, meaning Silver Eagle coins could be purchased in any quantity desired by the AP’s for the first time in 13 months. 

The Mint reported only 75,000 Silver Eagle coins sold for the first week of August – a ridiculously paltry number considering SD Bullion alone sold nearly 30,000 Silver Eagles this week.  This implies the US Mint’s numbers should likely not be taken at face value, as we believe the Mint’s Authorized Purchasers likely continued their inventory reductions.  We expect this trend to continue over the next 45-60 days, absent a shock to the markets. 

This brings year to date Silver Eagle coin sales to 27,695,500.

The second reason we are taking the US Mint’s sales numbers with a grain of salt is that physical demand at the retail level has been extraordinary in both gold and particularly silver coins at SD Bullion, with all-time record sales seen in July, and August off to an equally strong start.

As discussed on the show with Sunshine’s Tom Power, we believe the sudden dip in Silver Eagle sales at the US Mint is a phenomenon of the Authorized Purchasers (APs) reaching the end of their inventory build rather than a sudden collapse in retail silver demand.

Don’t be surprised if retail demand accelerates  as the calendar turns to August and September – particularly if Deutsche Bank and or the Italian Banking System suffers a liquidity crisis.

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