Liberty Gold and Silver
PHYSICAL DEMAND OFF THE CHARTS!
We are in the midst of experiencing two of the most radical weeks in the history of the
precious metals markets. Paper
prices for gold
and silver, those prices determined by the fraudulently managed
commodities exchanges (namely the COMEX and the London Bullion Marketing
Association – LBMA) and regulated by the equally corrupt and complicit
Commodities Futures Trading Commission (CFTC), have been driven into the basement.
Simultaneously, the available physical supplies of precious metals,
especially silver, have suddenly nearly disappeared. Some of the most
extreme shortages for silver in memory have caused premiums for all
types of bullion and coins to skyrocket. Nearly all major wholesalers
in the United States, and for that matter the world, are completely out
of stock for smaller denominated silver rounds and bars, with no
projected delivery dates in sight. This phenomenon is a worldwide
event.
Here is a brief overview of the extraordinary world events highlighting the tremendous surge in precious metals demand.
India
Last week, the highly reputable Business Standard of India reported
that there are “acute” shortages of gold in southern India. Reports the
Standard, “Major jewelry manufacturing centers in southern India are
facing an acute shortage of gold ahead of the wedding season despite the
industry’s claim to have seen a record import of the yellow metal last
financial year.”
Thailand
US ex-patriots living in Bangkok are reporting that gold dealers in
that city are completely out of bullion products other than minor
amounts of jewelry. These reports are stating that there is
not one ounce of gold bullion available for sale! Dealers are taking orders but these are limited to
2.5 ounces per person.
China
Gold demand is surging. China’s domestic gold consumption is
outpacing its internal production 5.5 to 1. China’s mining output was
up 5.8% in 2011 but its domestic consumption of the yellow metal
increased by 33%.
Hong Kong
Reports from Hong Kong have seen line-ups out the doors of precious metals
dealers. Dealers are reporting massive buying with almost zero
selling. Some dealers are reporting that they have sold more gold in
one day than they normally do in three months with walk-up clients
buying over a million dollars in gold with cash and taking it out the doors in gym bags!
Europe
Dutch Bank Shuts Down Gold Deliveries
Possible major shortages of its clients’ deliverable gold has forced
Dutch megabank ABN Amro last month to dramatically change its custodian
rules. ABN Amro announced March 24th that it
“will no longer allow physical delivery.” Hysterically, ABN Amro account managers attempted to soothe their clients by saying,
“You need to do nothing” as
“we have your investments in precious metals.”
Major German Auto Manufacturer Hoarding Silver
It is being reported from Switzerland that a world famous German
automaker is now resorting to storing thousands of pounds of .999 fine
silver for perceived future shortages. The company’s
purchasing manager
has been quoted saying, “For some metals, like silver, there’s no such
thing ‘just in time’ delivery anymore.” It has further been reported
that this company is buying every available ounce it can in preparation
for severe world shortages.
Switzerland to Buy a Stunning 1,000 Tons of Physical Gold?
A political movement inside Switzerland has acquired one hundred
thousand signatures towards new legislation to eliminate future gold
sales by the Swiss National Bank as well as to require the Swiss
government to
buy back
immediately one thousand tons of gold that it already sold. If this
becomes law, it will have a significant impact on tightening world gold
supplies.
United States
16% of US Annual Silver Production Vaporized in Mine Collapse
A massive landslide at Rio Tinto’s Kennecott mine in Utah, on April 12,
2013, has wiped out five million ounces of annual silver production and
five hundred thousand ounces of gold production. Taking into account
that the US Treasury requires all US Eagles be manufactured exclusively
with US mined
gold and silver, the extreme shortages of these products can only increase.
US Mint Reports Massive Silver Sales
The US Mint reported that it has sold one 1.645 million ounces of
Silver Eagles
through the first six business days in April, bringing its 2013 total
to an extraordinary 15.868 million ounces this year. This is on pace to
completely crush the current annual record. Because of unprecedented
demand, all dealers are on very tight allocations with almost all
retailers as well as major wholesalers completely out of stock.
Earliest expected shipments are at least 4 – 6 weeks out!
US Mint Gold Sales Setting Monthly Records
In April 2012, the US Mint sold 20,000 ounces of
gold bullion coins. As of April 16th this year, the US Mint has sold over 50,000 ounces of gold and the month is only half over!!
Precious Metals Sell/Buy Ratio Going Hyperbolic
An unofficial but reputable survey of US bullion wholesalers is
reporting a sales to buy ratio over 50 to 1. There are no forecasts for
this to ease any time soon.
Huge Wholesale Premium Increases
Unprecedented shortages in silver have resulted in huge premium
increases for silver dealers at all levels. Premiums for US Eagles and
Canadian Maple Leafs have jumped $1 in the last week.
Premiums for “junk silver” are completely off the charts. It has
been reported to us that buyers in areas such as northern New Jersey are
paying an incredible $9 an ounce over spot for pre-1965
US silver coins.
As far as we know, this may be the highest in history. Wholesale
premiums for “junk silver” have risen 2,000 percent in the last six
months. Most importantly, there is almost none to be found anywhere.
Some dealers are taking orders with three months waiting time.
Zero Inventories at Major Private US Mints
Two of the largest silver bullion fabricators in North America, A-Mark Precious Metals
of Santa Monica, California, and the NTR Bullion Group of Dallas,
Texas, have just notified their retail dealers that they have suspended
sales of most of their silver products. A-Mark has announced that it is
ceasing taking orders for all its one ounce, ten ounce, and one hundred
ounce rounds and bars. There is no projected date for resumption of
sales!
Retail Coin Stores Completely Out of New Stock
It is being reported to us that the majority of local retail
coin dealers
are entirely out of stock of any silver products. Our unofficial
surveys reveal almost no customers selling where buying requests are
reaching a frenzied level. The silver shortage situation is fast
approaching the extreme level currently experienced in ammunition
sales. Basically, neither can be found!
Ladies and gentlemen, it is becoming patently obvious that world
citizens are waking up fast to the inherent risks of fractional reserve
private central banking, and the extreme threat that burgeoning
government debt means for them. Wise people everywhere are no longer
looking for yield but are seeking safety in ever increasing numbers.
And, they are looking for it hard and fast. What they are finding is
the ultimate safety for wealth protection, namely, gold and silver.
To learn more about the rewards of precious metals investing, including how to fund your existing IRA with
gold or silver, call
Liberty Gold and Silver seven days a week at 888.751.3330. To learn about the most generous referral program in the precious metals industry, please visit the
Liberty Gold and Silver Referral Program.
We’re happy to spend as much time as you need to discuss the details with you.
http://www.libertygoldandsilver.com/GoldandSilverBlog/?p=174
The largest oil exporter in the Middle East has teamed up with the second largest consumer of oil in the world (China) to build a gigantic new oil refinery and the mainstream media in the United States has barely even noticed it. This mammoth new refinery is scheduled to be fully operational in the Red Sea port city of Yanbu by 2014. Over the past several years, China has sought to aggressively expand trade with Saudi Arabia, and China now actually imports more oil from Saudi Arabia than the United States does. In February, China imported 1.39 million barrels of oil per day from Saudi Arabia. That was 39 percent higher than last February. So why is this important? Well, back in 1973 the United States and Saudi Arabia agreed that all oil sold by Saudi Arabia would be denominated in U.S. dollars. This petrodollar system was adopted by almost the entire world and it has had great benefits for the U.S. economy. But if China becomes Saudi Arabia's most important trading partner, then why should Saudi Arabia continue to only sell oil in U.S. dollars? And if the petrodollar system collapses, what is that going to mean for the U.S. economy?
Those are very important questions, and they will be addressed later on in this article. First of all, let's take a closer look at the agreement reached between Saudi Arabia and China recently.
The following is how the deal was described in a recent China Daily article....
At a time when the U.S. is actually losing refining capacity, this is a stunning development.
Yet the U.S. press has been largely silent about this.
Very curious.
But China is not just doing deals with Saudi Arabia. China has also been striking deals with several other important oil producing nations. The following comes from a recent article by Gregg Laskoski....
Essentially, China is running circles around the United States when it comes to locking up strategic oil supplies worldwide.
And all of these developments could have tremendous implications for the future of the petrodollar system.
If you are not familiar with the petrodollar system, it really is not that complicated. Basically, almost all of the oil in the world is traded in U.S. dollars. The origin of the petrodollar system was detailed in a recent article by Jerry Robinson....
Once you understand the petrodollar system, it becomes much easier to understand why our politicians treat Saudi leaders with kid gloves. The U.S. government does not want to see anything happen that would jeopardize the status quo.
A recent article by Marin Katusa described some more of the benefits that the petrodollar system has had for the U.S. economy....
So what happens if the petrodollar system collapses?
Well, for one thing the value of the U.S. dollar would plummet big time.
U.S. consumers would suddenly find that all of those "cheap imported goods" would rise in price dramatically as would the price of gasoline.
If you think the price of gas is high now, you just wait until the petrodollar system collapses.
In addition, there would be much less of a demand for U.S. government debt since countries would not have so many excess U.S. dollars lying around.
So needless to say, the U.S. government really needs the petrodollar system to continue.
But in the end, it is Saudi Arabia that is holding the cards.
If Saudi Arabia chooses to sell oil in a currency other than the U.S. dollar, most of the rest of the oil producing countries in the Middle East would surely do the same rather quickly.
And we have already seen countries in other parts of the world start to move away from using the U.S. dollar in global trade.
For example, Russia and China have agreed to now use their own national currencies when trading with each other rather than the U.S. dollar.
That got virtually no attention in the U.S. media, but it really was a big deal when it was announced.
A recent article by Graham Summers summarized some of the other moves away from the U.S. dollar in international trade that we have seen recently....
Yes, the days of the U.S. dollar being the primary reserve currency of the world are definitely numbered.
It will not happen overnight, but as the U.S. economy continues to get weaker it is inevitable that the rest of the world will continue to question why the U.S. dollar should automatically have such a dominant position in international trade.
Over the next few years, keep a close eye on Saudi Arabia.
When Saudi Arabia announces a move away from the petrodollar system, that will be a major trigger event for the global financial system and it will be a really, really bad sign for the U.S. economy.
The level of prosperity that we are enjoying today would not be possible without the petrodollar system. Once the petrodollar system collapses, a lot of our underlying economic vulnerabilities will be exposed and it will not be pretty.
Tough times are on the horizon. It is imperative that we all get informed and that we all get prepared.