While interest and sentiment in the precious metals have been depressed
compared to the preceding month, this all changed during the past few
days. This trend change is particularly the case for silver. Even
though Silver Eagle sales have been much weaker this year, positive signs
show that investors still believe in acquiring the shiny metal when fear and
uncertainty enter into the markets.
Although, Silver Eagle sales for Jan-Aug 2017 are nearly 50% lower than
they were during the same period last year. I believe the biggest
factor that hurt Silver Eagle sales was the election of Donald Trump as U.S.
President. Many individuals in the Alternative Media think that because
Trump is in the Whitehouse versus Hillary Clinton, it translates to a lot
less FEAR as it pertains to the control by the elite. Thus, the
motivation to continue purchasing precious metals, bulk food, guns-ammo and
survival goods has diminished considerably since the election in November.
However, when serious geopolitical events arise, investors still want to
rush into owning more gold and silver. And they did so in a BIG WAY
over the past few days.
According to the updates on the U.S. Mint website, Silver Eagle
sales surged by 300,000 on Monday, August 28th and another 300,000 on
Tuesday, August 29th:
As we can see, Silver Eagle sales for the first three weeks of August were
only 425,000, the slowest trend compared to all the previous months.
But, after the N. Korean nuclear threat, the massive flooding in Houston
Texas, and the U.S. debt ceiling issue over the past week, the U.S. Mint sold
600,000 Silver Eagles in two days, surpassing the 425,000 four-week total
(Aug 1st-25th).
Again, the U.S. Mint sold 300,000 Silver Eagles on Monday, August 28th and
another 300,000 on Tuesday, August 29th. They may have another update
today for the past two days, but sometimes they wait until the next month to
list those sales.
Regardless, that is a great deal of Silver Eagles sales over those two
days. I would imagine the crazy events over the past week were
instrumental in pushing up not only the silver price but also demand for
Silver Eagles.
What is also extremely interesting about the recent U.S. Mint Gold and
Silver Eagle sale figures, is that the silver to gold buying ratio is now
above the 100 to 1 ratio. The U.S. Mint sold 1,025,000 Silver
Eagles vs. 9,500 oz of Gold Eagles in August (so far). Thus, the Silver
to Gold Eagle sales ratio is now 108 to 1. Which means,
investors are purchasing a great deal more Silver Eagles than Gold Eagles
during these tumultuous geopolitical, natural disaster and upcoming financial
events.
It will be interesting to see what happens with precious metals demand and
prices when the U.S. debt ceiling debate becomes an issue next month.
Also, there is speculation that there will be a significant correction in the
broader stock markets this fall. If we do see a significant correction
in the broader markets, I would imagine we will see a surge in the price and
demand of gold and silver.
This is exactly what happened to the precious metals at the beginning of
2016 when the Dow Jones fell 2,000 points in a relatively short period.
In just two months as the Dow Jones sold off just 2,000 points, the
silver price increased 17%, and gold jumped 20%:
While the overly-inflated U.S. stock market could continue to rise even
higher, at some point, it will suffer a substantial correction. Because
the U.S. govt has been propping up the markets, when this correction finally
arrives, it will likely be the BIG ONE.
Thus, it is important to own precious metals to protect against falling
paper asset values. Furthermore, this will only be PHASE 1 of the
upcoming U.S. economic and financial collapse. The market correction
will be the WARNING LIGHT. However, most won’t pay attention to this
warning, so business, as usual, will continue for a while longer
When the REAL CRASH comes… then if you don’t hold a good portion
of your wealth in precious metals, you will wish you had.
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