Silver Jumps-Up 0.45$ As Bitcoin Continues To Drain PM Market
Silver Jumps-Up 0.45$ As Bitcoin Continues To Drain PM Market by Rory – The Daily Coin
The precious metals market has been drained of all retail customers; at least in the West. The East, where people still have disposable income and an appreciation and understanding of gold and silver, they are acquiring with both hands.
What we see is a departure, of sorts, within the precious metals community. The western world, being completely broke and barely having enough income to make it week-to-week, have managed to scrape together about $50 to bet on bitcoin. All disposable funds, that were going to precious metals, have now been redirected to either food, everyday life or bitcoin/cryptocurrencies. We have discussed this on a number of occasions and it seems the mainstream media is now catching up.
As reported by the WSJ earlier today.
Gold prices are rallying, but retail gold dealers and shops are struggling to survive.
Businesses that sell gold coins and other products made from the precious metal usually thrive during years like 2017. Gold futures have gained more than 10%, boosted by a weaker dollar and by big investors looking for a haven during recent geopolitical tensions surrounding North Korea and Iran.
Yet sales this year of American Eagles, a popular gold coin and a proxy for retail sales of physical gold, have fallen to their lowest levels since 2007, according to the U.S. Mint.
The weak demand is taking a toll on gold dealers, some of whose sales have dropped as much as 70% compared with last year, according to Jeffrey Christian, managing partner at market-research firm CPM Group.
“It’s been absolutely dismal,” said Peter Thomas, senior vice president of metals at Zaner Precious Metals, a Chicago precious-metals dealer. “A lot of guys have been really hurting.”
One reason for the declining business: A number of retail buyers are turning to cryptocurrencies like bitcoin to store money during periods of stress, some analysts say. …
Of course the timing of the WSJ article is highly suspect since it was just a couple of days ago the mainstream media was screaming about counterfeit Royal Canadian gold bars and made sure that everyone on planet earth heard the story. How many counterfeit gold/silver bars, coins have you ever encountered? Odds are you have encountered the exact same number as we have – zero to none.
The fact that gold is money and silver has been money longer than gold is never mentioned nor is it accounted for in any of the reporting by the mainstream media. They simply scream negative news about the metals and make sure that everyone knows there was an issue. We have learned to take it all in stride and not allow our feathers to become too ruffled over these types of articles. We have also learned that it makes for a great opportunity to remind people to use trusted sources for everything, especially when it comes to wealth preservation. Just because someone is offering this or that for PM’s does not mean they are the most reputable or that someone is going to come away with a great “bargain”. Trust is everything. I don’t trust the mainstream media, as it has become obvious they always have an agenda. This is the reason we are reporting this latest nonsense with a particular slant.
We have been reporting, for the past several months, the mainstream media has co-oped the cryptocurrency market to use it for their own purposes. Why would this latest piece of news be any different? We, at The Daily Coin, use it to our advantage as well.
Gold and silver are both up today, which is nice change of pace, but both metals are still way, way undervalued and people should be adding to their stack or beginning to build a new stack while it is still possible.
As has been recently reported, gold and silver mining production is beginning to show real strain. The last 5-6 years of muted capital inflows is now beginning to catch-up with the mining industry. The mining companies have all stripped their operations of any excessive waste and have streamlined their operations as best as they can. With little else to streamline the mining companies that are not mining a profit will find themselves in very serious trouble by the end of 2018 and our prediction is the consolidation phase will begin in earnest. With little capital to invest in R&D the only thing the large mining operations can do is buy the smaller operations to add to their production.
China ranks as the worlds leading consumer of gold and plays an important role in the world gold market. According to the World Gold Council Q2 2017 data, China accounts for about 28.6% of global jewelry demand, and 26% of the worlds bar and coin demand. The Chinese central bank owns the fifth largest gold reserves in the world. Analysts say consumer gold demand may top 1,000 tons this year.
As demand increases, gold production is dropping off in China. Chinese mine output fell 10% through the first three quarters of 2017, according to the China Gold Association. Chinese gold production came in at 313 tons through Q3. Analysts say an ongoing drive for raising environmental protection standards curtailed output in Shandong, Jiangxi and Fujian provinces. China is the world’s leading gold producer.
All of this is playing into the hands of the speculators in the cryptocurrency market. The speculators look at the mining sector see little happening and !Viola! place their bet with cryptos! The investment funds that are flowing into purely speculative markets seem to be moving into cryptocurrencies. We feel this is great for the precious metals. When there is blood in streets, that it is the time to acquire an asset. Right now, gold and silver are surely hated and the hatred may actually grow from here. If it does we will be waiting, just like the uber-welathy are doing – waiting to acquire, with both hands, all the mining stocks and all the physical gold and silver our budget will allow. The cryptocurrency crowd will be getting theirs as well, we just like privacy when it comes to our wealth and we like 24/7 access, especially if there is a problem. Look at how it is working out for the people in Puerto Rico. Cryptocurrencies serve zero purpose, while physical cash, physical gold and physical silver are ruling the roost and we like the fact that silver is up for the day.