Gold may have lost favour, but its long-term prospects are excellent

 by Dave Levenstein, June 06 2014, 11:00


GOLD prices fell sharply last week as US equities soared despite a downward revision in US gross domestic product (GDP) that showed that the had economy contracted in the first quarter.
While gold prices plunged to a weekly low of $1,240, the S&P 500 pushed further into record territory and the Dow neared its best-ever mark. Under normal circumstances a decline in GDP growth would have an adverse effect on equities, but almost every time there is negative news, particularly in the US, the stock market moves higher.
According to data from the US Department of Commerce, the US economy declined by 1% in the first quarter.
"The downturn in the percent change in real GDP primarily reflected a downturn in exports, a larger decrease in private inventory investment, and downturns in nonresidential fixed investment and in state and local government spending that were partly offset by an upturn in federal government spending," the report said.
The results of the recent European Union (EU) parliamentary elections showed that many people are extremely discontented with a system of government that is directed from Brussels, in particular individuals in France and England.
http://www.bdlive.co.za/blogs/markets/2014/06/06/gold-may-have-lost-favour-but-its-long-term-prospects-are-excellent




\MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Physical Shortage Of Gold And Silver, Manipulation, Economy

Gold Silver Worlds: In this month’s Markets at a Glance, Eric Sprott presents a collection of thoughts on why he thinks precious metals is a compelling investment right now. He looks at three major topics: physical shortage in gold and silver, manipulation of precious metals prices, and the dire state of the economy. All this points to the same conclusion, i.e. the fundamental strength of precious metals investments.

• The Gold Forward Offered Rate (GOFO) remains very low, with extended periods of time in negative territory (Chart 1).
• Why is Germany’s repatriation of their 674 tonnes of gold taking so long? As of March 2014, only 69 tonnes had made their way back, a pace of less than 5 tonnes a month.
• If there is no shortage of gold, why are the U.S. and U.K. exporting so much gold to Switzerland? (which itself exports most of it to China).
• According to some estimates, China consumed over 4,800 tonnes of gold in 2013, implying that about 3,600 tonnes were drawn from global stocks (i.e. western vaults) to satisfy demand.
• All this Chinese buying is reflected in the monstrous amounts of gold deliveries on the Shanghai Gold Exchange.
• Dubai is building a new gold refinery capable of handling 1,400 tonnes, and current global gold refining capacity is about 6,000 tonnes (world mine production is less than 3,000 tonnes a year). Why would they need so much refining capacity if physical demand was not buoyant?
• As the major gold miners cut back on exploration, future mine supply will remain constrained.
• Another “temporary source of supply” (900 tonnes) has been ETFs, which have been raided for most of 2013. However, as Chart 2 shows, they have now stabilized. Other things being equal in demand, where will that 900 tonnes of supply come from in 2014?
• Interestingly, the Silver Institute, in its 2014 World Silver Survey, noted that there was a 96 million ounces shortfall in 2013 due to strong physical demand.
• read more @ http://etfdailynews.com/2014/06/03/physical-shortage-of-gold-and-silver-manipulation-economy/

MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Silver Eagle Sales Limits Ends, Silver Prices Tumble in May

 Bullion 2014 American Silver Eagle sales held at very strong levels in May even as the silver market turned down for the third month in a row.The bullion coin numbers were aided, albeit, from a mid-month sales adjustment that saw April’s total drop and May’s figure lifted.
But first, in precious metals futures, silver prices for July delivery ended May at $18.68 an ounce, equating to a drop of 49 cents from its position at the end of April, or a dip of 2.6%. This third straight monthly decline marks a loss of $2.56, or 12.1%, from February’s close — the last month to see a gain. Year to date, silver prices have shed 69 cents, or 3.6%.
Looking at other precious metals futures:

• Gold at $1,246.00 an ounce dropped 3.9% in May
• Palladium rose to $836.35 an ounce, rallying 2.9% for the month
• Platinum at $1,452.70 an ounce rose 1.7% in May

Year to date, gains stack to 3.6% for gold, 5.7% for platinum and 16.4% for palladium.
http://www.silvercoinstoday.com/silver-eagle-sales-limits-ends-silver-prices-tumble-in-may/1010230/







MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Silver Doctor: Physical Silver Demand Still Strong

 The interview starts with Jason asking Doc about the end of the London (LBMA) Silver Fix and what it means for silver prices.

Next, Jason asks about physical silver demand and if demand is still strong. Doc talks about record demand from the US Mint and from the Royal Canadian Mint.

Doc also says retail demand from his website has been strong but there is no silver shortage so premiums are not high.

Jason and Doc talk about how gold and silver may go sideways for another few months before finally starting to move higher before the end of 2014.

Next, Jason asks Doc about "Lead Bullion" or ammunition and why Doc just got into selling ammunition on his website. Doc talks about the 2nd Amendment and why it's important for people to own guns.

Jason then brings up the supply/demand market for guns and ammo and why he thinks guns and ammo in the US are in a huge secular bull market.

MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

James Rickards: Financial Collapse and Massive Shortages In Gold Coming

Greg Hunter: Financial expert and best-selling author James Rickards’ latest book predicts “the coming collapse of the international monetary system.”  One of the sign posts is countries like Russia declaring it will shed the U.S. Dollar as reserve currency in international trade.  Rickards explains, “Putin said he envisions a Eurasian economic zone involving Eastern Europe, central Asia and Russia.  The Russian Ruble is nowhere near ready to be a global reserve currency, but it could be a regional reserve currency.”

Rickards’ latest best-selling book, “The Death of Money,” was released in April.  Even Rickards is surprised at how fast the economic situation is unfolding.  Rickards says, “If you ask me what has happened since you finished writing the book that comes as a surprise, I would say a lot of the things I talk about in my book are happening faster than I would have expected.  Things that I thought would happen in the 2015 or 2016 time frame seems to be happening now in some ways.  If anything, the tempo of events is faster than expected.  Therefore, some of these catastrophic outcomes may come sooner than I wrote about.”

Rickards goes on to say, “Right now, we are on the precipice now.  When you are on the precipice, it doesn’t mean you fall off immediately, but you are going to fall off because you can see the forces in play.  What I tell clients and investors is it’s not as if we are going to make some mistakes and some bad things are going to happen.  The mistakes have already been made.  The instability is already in the system.  We’re just waiting for that catalyst that I call the snowflake that starts the avalanche.   You don’t worry about the snowflakes; you worry about the snow and that it’s unstable and it’s just waiting to collapse.  That’s what the system is right now; we are just waiting for a catalyst.  People ask me all the time, what could it be?  Technically, my answer is it doesn’t matter because it will be something.  It could be a failure to deliver physical gold.  It could be an MF Global financial failure.  It could be a natural disaster.  It could be a lot of things.  The thing investors need to understand is the catalyst doesn’t matter.  It’s coming because the instability is already there.”
read more @ http://etfdailynews.com/2014/05/27/james-rickards-financial-collapse-and-massive-shortages-in-gold-coming/



MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet