My name is Shawn Ozbun, and our goal is to keep you up to date with what’s going on in the world of Gold and Silver by providing you with current news and precious metals pricing.
The Silvertowne Vault Cast is brought to you by www.Silvertowne.com
It’s Monday and thank you for joining me for another Vault Cast. Today is going to be a longer show. Just a reminder I wont be recording a show this Thursday or next Monday. I will be back the following Thursday to record another extended vault cast episode. Today we have a few news articles that deal with the economy and the crazy gold prices. At the end of the show I’m going to be addressing a listeners question about Arizona and how making it legal to use gold and silver will work in the market place.
Todays precious metals pricing
Gold - $1429.01 Up $22.85
Silver - $23.52 Up $0.24
Platinum - $1432.00 Up $9.50
Palladium - $679.98 Up $6.43
History Tells Us That A Gold Crash + An Oil Crash = Guaranteed Recession
Is the United States about to experience another major economic downturn? Unfortunately, the pattern that is emerging right now is exactly the kind of pattern that you would expect to see just before a major stock market crash and a deep recession. History tells us that when the price of gold crashes, a recession almost always follows. History also tells us that when the price of oil crashes, a recession almost always follows. When both of those things happen, a significant economic downturn is virtually guaranteed. Just remember what happened back in 2008. Gold and oil both started falling rapidly in July, and in the fall we experienced the worst financial crisis that the U.S. had seen since the days of the Great Depression. Well, a similar pattern seems to be happening again. The price of gold has already crashed, and the price of a barrel of WTI crude oil has dropped to $86.37 as I write this. If the price of oil dips below $80 a barrel and stays there, that will be a major red flag. Meanwhile, we have just seen volatility return to the financial markets in a big way. When volatility starts to spike, that is usually a clear sign that stocks are about to go down substantially. So buckle your seatbelts - it looks like things are about to get very, very interesting. Read More...
10 Signs The Takedown Of Paper Gold Has Unleashed An Unprecedented Global Run On Physical Gold And Silver
The crash of the price of paper gold on Monday has unleashed an unprecedented global frenzy to buy physical gold and silver. All over the planet, people are recognizing that this is a unique opportunity to be able to acquire large amounts of gold and silver at a bargain price. So precious metals dealers now find themselves being overwhelmed with orders in the United States, in Canada, in Europe and over in Asia. Will this massive run on physical gold and silver soon lead to widespread shortages of those metals? Instead of frightening people away from gold and silver,the takedown of paper gold seems to have had just the opposite effect. People just can't seem to get enough physical gold and silver right now. Those that wish that they had gotten into gold when it was less than $1400 an ounce are able to do so now, and it is absolutely insane that silver is sitting at about $23 an ounce. If the big banks continue to play games with the price of gold, we are going to see existing supplies of physical gold and silver dry up very quickly. And once reports of physical shortages of gold and silver become widespread, it is going to absolutely rock the financial world.
#1 According to Zero Hedge, the U.S. Mint set a new all-time record for the number of gold ounces sold on Wednesday...
#2 Precious metals dealers all over the United States are having a really hard time keeping up with demand right now. According to Chris Martenson, many are warning customers to expect waiting times of five to six weeks at this point...
#3 Individual dealers all over the country are confirming that we are seeing a voracious appetite for precious metals at the moment. For example, the following is what a spokesperson for JM Bullion had to say...
#4 Large international banks are also experiencing tremendous demand for physical gold and silver by customers right now. The following is what Keith Barron told King World News about what he is hearing...
#5 The demand for physical gold and silver is heating up over in Europe as well.
#6 On the other side of the globe, demand for precious metals is skyrocketing as well. According to Bloomberg, people are "running through the gate" to get gold in Australia...
#7 Reuters is reporting that customers are waiting for up to three hours to buy gold in Japan...
#8 According to a Chinese article quoted by the Blaze, there is a mad rush to buy gold in China right now...
#9 According to Reuters, dealers in Singapore are having significant trouble finding enough of a supply to keep up with the intense demand for gold that has erupted this week...
#10 Bloomberg is reporting that over in India people are "flocking to stores" to purchase gold jewelry and coins...
Read More...
Shortage of gold bars and coins in Dubai, says World Gold Council
KOLKATA: World Gold Council, which has been tracking the global gold market pattern, has found that there is a shortage for bars and coins in Dubai which is creating a supply shortage.
Aram Shishmanian, CEO, World Gold Council: "It has become increasingly clear over the course of the past week that the fallin the gold price was triggered by speculative traders operating in the futures markets. Their short-term view of generating a trading profit is in stark contrast to the views of long term investors in gold, as evidenced by the massive wave of physical gold buying that began over the weekend and accelerated following Monday's further decline.
The surge in gold purchases is spanning markets from India and China to the US, Japan and Europe. Buyers are viewing this as an opportunity to purchase gold at prices not seen in the past couple of years." Read More...
Question from Listener
Anthony -
Hi Shawn. Question. . In all seriousness, what benefit is it that Arizona is allowing Gold and Silver as currency and realistically how can it work? Scenario: I go to a connivance store and purchase a few items and choose to pay w/ an OZ of silver. The items do not add up the value of the silver, how would the difference be handled? Would I get change in the form of a devalued currency or basically told to purchase more item till the value is equal?
First of all I want to thank you Anthony for your question. It's one that have pondered on for a while. The truth is I don't know exactly how this will work. What I do know is that it's always good for citizens to have alternative methods for paying for taxes, services and goods, especially when we have a declining fiat dollar and that’s being printed into infinity.
I found a good article that goes into more detail about what’s going on with this. I’m going to link to this article and read some thoughts from it and hopefully this will give you a better idea of how this works but more importantly why its so important that more States take on this mindset to protect the wealth of their citizens.
Arizona Legislature Approves Gold and Silver as Money
As trust in the Federal Reserve System and its fiat dollar continues to plummet worldwide, legislation making gold and silver into legal tender was given final approval by Arizona lawmakers on Monday when the Republican-led state House of Representatives voted overwhelmingly in favor of the bill. With tremendous grassroots support, an earlier version of the precious-metals measure sailed through the GOP-controlled Arizona Senate in late February.
Arizona would become the second state to officially define gold and silver as legal tender. Utah adopted a similar law two years ago, garnering widespread praise among free market-oriented economists and sending shockwaves through the financial community. Since then, as the privately owned Federal Reserve and its wild policies have come under increasingly fierce criticism, the movement to restore sound money has been spreading across America like wildfire. Over a dozen states already have similar efforts underway.
Under the Arizona SB 1439 legislation, precious metals would be treated just like debt-based fiat dollars for taxation and regulation purposes. However, unlike fiat dollars, nobody would be forced to accept gold or silver currency. While the original Senate bill would have allowed citizens to pay state taxes in any form of money, including precious metals, the House added an amendment striking that provision in an effort to ease opposition from the state Department of Revenue.
In an interview with Bloomberg news, state Sen. Chester Crandell, who sponsored the bill in the Senate, said making gold and silver legal tender is the “logical thing” for Arizona to do. “I think you look at some of the things that are happening and the amount of money printed by the Federal Reserve and who has control of that money, and I think anybody would be concerned,”
"This gives a lot of opportunity for those who would like to use an alternative method of payment," Sen. Crandell told a local news outlet about the benefits of his legislation, using arguments similar to those advanced in Utah prior to that state’s adoption of the legal tender act. “Gold and silver have been around a long time and people are secure with it and we should give them an opportunity to use it.”
The bill does not specify how the system should work, leaving it up to participants in the market to work it out voluntarily. However, the popular lawmaker said he envisions private-sector companies and organizations, for example, holding precious metals and offering credit or debit cards to customers — that way people would not need to carry physical bullion to make routine payments.
So to me in mind the advantage at the face value is this. It would be nice to have an alternative method of currency. Not only that, this may encourage more people to own real money which means more peoples wealth will be protected. Finally, my money won't inflate and become worthless, unlike using a fiat dollar.
I hope that this gives you a better idea of how this might work and why It’s so important.
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[Disclaimer] Shawn Ozbun is not a licensed financial adviser, there is risk associated with all investment including gold and silver. You should seek advise from a licensed financial expert before making a purchase.
