Gold And Silver: Economics 101 Is Completely Dead
Gold And Silver: Economics 101 Is Completely Dead by Rory – The Daily Coin
U.S. Mint American Silver Eagles (ASE) have not been in the news much this year as the authorized purchasers (AP) have not been acquiring the volume of ASE’s as they have in recent years. As a matter of fact the AP’s only added 1,360,000 ASE’s in the months of September and October. In years past this would equal to about two weeks of acquisitions. The average number of ASE’s the AP’s have been acquiring each month has been approximately 1.7 million with a total year to date of 17,028,500 which includes 90k for the first few days of November.
To put this in perspective in 2016 the Authorized Purchasers acquired 37,701,500 or just over 3 million Eagles per month. It would appear that 2017 is going to be the lowest mintage year for Silver Eagles since before 2008. The AP’s, in 2009, acquired 20,583,000 and this was the first truly large scale movement of ASE’s into the market. Prior to 2009 the largest volume year ever was 10,676,522 in 2006. The American Eagle program, both gold and silver, began in 1986 and until the economy collapsed in 2008 Silver was not viewed as a safe haven asset. Silver has been money longer than gold, but people had unlearned this truth over the past 100 years due to the privately owned Federal Reserve System hijacking the U.S. economy and U.S. Treasury in 1913.
Not only are the ASE’s not moving into the market at the pace they have over the past 9 years, American Gold Eagles (AGE) are suffering the same fate. With AP’s shunning AGE’s in the same manner as the ASE’s precious metals flowing from the US Mint are just sad. AGE’s year-to-date total is a mere 633,500 coins for a total of 250,000 ounces. 2017 will be in the top 5 lowest minted gold ounces for US Mint since the inception of the American Eagle program in 1986.
Coming back to silver we see India imported more silver in September 2017 than the US Mint has minted ASE’s all year! India imported a stunning amount of silver, just over 18 million ounces representing a 152% increase year over year during September alone. Physical silver and gold are moving into the market, just not at the retail level and not in the western world. As we recently reported China’s physical gold demand has increased by 44.5% year-over-year while gold mining production has fallen by 10%.
Why is the gold and silver exchange rate not moving higher? We see massive demand increases for both metals but the charts refuse to move higher when they should in fact be moving in the same manner as any of the cryptocurrencies, but they are not. To any thinking person this should be a clear indication that something is completely wrong (rigged) in the precious metals markets. If the charts are not moving to higher ground as the demand has increased on the scale that it has, while at the same time mining production is dropping off, someone is gong to have to explain to me what happened to Economics 101.
If anyone looks at these numbers and can explain how this works it would be greatly appreciated. When you have a 44.5% increase in demand, in the largest market in the world, coupled with a 10% drop in production, by the worlds largest producer and the market price doesn’t move higher, and may have in fact moved lower, is that the very definition of market rigging or is just how I see it? If you combine these facts with India now reporting a 152% year over year increase in the importation of silver – 152% increase which represents more than 18,000,000 ounces of silver – and the market prices doesn’t move higher what will it take to move the market price higher for either of these items? ANY other product – ANY – would have had the cheerleaders on “financial TV” screaming from the rooftops and the market price would be shooting for the moon or possibly Jupiter.