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.
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It’s Thursday and welcome back to the SilverTowne Vault Cast. Today we have a ton of collapse news to talk about along with some gold news. I’m going to talk about price manipulation on commodities, Gold sales are highest in three years, more Arizona gold currency news, and then 20 signs that a depression has already started.
Now lets get into today's precious metals pricing.
Gold – $1472.15 Up $ 14.30
Silver – $24.14 Up $ .51
Platinum- $1488.00 Up $16.50
Palladium- $689.00 Up $3.79
Economic collapse and price controls on commodities!
Right now there is price manipulation happening in virtually all markets!! Stocks, bonds, commodities, etc. There is a very big unintended consequence of the artificial suppression of commodity prices that I want you to think about. We all now are seeing how the price of gold and silver on the comex is no where near what costs to acquire the physical. That is because the premium (or the markup from the spot price). I believe this is happening in most commodity markets to try and hide TRUE inflation. The problem is we will see a greater discrepincy between the spot price and the actual price. Think about gas??? In 2007ish the price of a barrel was about the same as it is today, yet we were only paying $1.50ish then for a gallon of gas. Today, They have manipulated the price of oil to “artificial” price however the “actual” price to us is virtually double!!!!! This is very similar in many commodities…
Here is the big problem, my belief is that before we see the huge price spikes in commodities we will first see SHORTAGES!!!! This is a direct result of the manipulation!!! What we are seeing in the precious metals today with a decoupling between the spot price and “actual” price will hit other commodities as well! IMHO!!!
Price controls tend to lead to shortages!
What will this mean for us potentially? Price controls and the free market tend to be at odds? So a farmer who knows he can get twice as much in China will gladly sell to China for double. Think… Oil, food, Precious Metals, imports will all be affected!
Please people remember the gas lines of the 1970′s because of price controls/lack of supply!!! Now imagine that on most commodities! That is whats coming!! Read More...
U.S. Mint Sales of Gold Coins Jump to Highest in Three Years
Demand surged at mints from Australia to the U.K. and the U.S. after futures slumped 13 percent in two days through April 15. Gold futures tumbled 7.8 percent last month and dropped into a bear market as some investors lost faith in the metal as a store of value. Perth Mint, which refines almost all of the nation’s bullion, said that demand jumped to the highest in five years after prices plunged, with the factory kept open through the weekend to meet orders.
“People are flocking to buy physical gold,” Todd Dutkevitch, a senior account executive at Los Angeles-based American Bullion Inc., said in a phone interview. “The price drop has made it possible for many retail buyers to add gold.”
Futures for June delivery rose 0.1 percent to $1,473.30 an ounce on the Comex in New York today. The metal is down 12 percent this year, even after advancing 11 percent from a 26- month low of $1,321.50 on April 16.
The U.S. mint said April 23 it suspended sales of coins weighing a 10th of an ounce after demand more than doubled from a year earlier. Read More...
Arizona returning to gold rush roots with bill making gold legal tender
Arizona is returning to its gold rush roots with a bill that would make precious metals legal currency. The GOP-led Senate gave final approval Tuesday to the bill that could make Arizona the second state in the nation to recognize gold and silver as legal tender. If signed into law by Gov. Jan Brewer, the measure would take effect in 2014.
The state Department of Revenue opposed the measure. It passed in the House only after an amendment was added to exempt the department from having to accept gold or silver as tax payments.
The measure reflects a growing distrust of government-backed money amid the declining value of the dollar, according to proponents. Republican Rep. David Livingston of Peoria, a financial adviser who ushered the legislation through the House, said his clients were eager to tap into their gold and silver reserves.
But Democrats, who voted against the measure in the Senate and House, said it sends a false message to constituents that gold and silver are safer than traditional currency.
"This is too extreme," Democratic Sen. Steve Gallardo of Phoenix said. "We don't need it."
Democratic Sen. Steve Farley of Tucson said the measure is unnecessary and would create long lines at businesses as store clerks inspect and weigh the gold and silver. The measure would allow the use of precious metals as money only when businesses agree to take them.
"Businesses are not clamoring for this, to say the least," Farley said. "This is basically growing the size and scope of government to create an entirely new currency system."
Farley noted that the price of gold saw a significant drop in early April, its biggest one-day plunge since 1983. He said allowing gold and silver as legal payment at grocery stores and other businesses would prove too unpredictable.
"Anybody who thinks gold or silver is a safe place to put your money had better think again," he said.
The Senate had previously passed Senate Bill 1439, but it was sent back for final approval after the House amendment passed.
Utah became the first state to allow gold or silver payments in 2011. Lawmakers in Minnesota, North Carolina, Idaho, South Carolina, Colorado and other states have debated copycat laws in recent years. The Maine Senate and House recently rejected a similar measure.
Gold-backed money fell out of favor during World War I because the U.S. and many other countries needed to print more cash to pay for the war. President Richard Nixon formally abandoned the gold standard in 1971. Read More...
20 Signs That The Next Great Economic Depression Has Already Started In Europe
The next Great Depression is already happening - it just hasn't reached the United States yet. Things in Europe just continue to get worse and worse, and yet most people in the United States still don't get it. All the time I have people ask me when the "economic collapse" is going to happen. Well, for ages I have been warning that the next major wave of the ongoing economic collapse would begin in Europe, and that is exactly what is happening. In fact, both Greece and Spain already have levels of unemployment that are greater than anything the U.S. experienced during the Great Depression of the 1930s. Pay close attention to what is happening over there, because it is coming here too. You see, the truth is that Europe is a lot like the United States. We are both drowning in unprecedented levels of debt, and we both have over leveraged banking systems that resemble a house of cards. The reason why the U.S. does not look like Europe yet is because we have thrown all caution to the wind. The Federal Reserve is printing money as if there is no tomorrow and the U.S. government is savagely destroying the future that our children and our grandchildren were supposed to have by stealing more than 100 million dollars from them every single hour of every single day. We have gone "all in" on kicking the can down the road even though it means destroying the future of America. But the alternative scares the living daylights out of our politicians. When nations such as Greece, Spain, Portugal and Italy tried to slow down the rate at which their debts were rising, the results were absolutely devastating. A full-blown economic depression is raging across southern Europe and it is rapidly spreading into northern Europe. Eventually it will spread to the rest of the globe as well.
The unemployment rate in France has surged to 10.6 percent, and the number of jobless claims in that country recently set a new all-time record.
Unemployment in the eurozone as a whole is sitting at an all-time record of 12 percent.
Two years ago, Portugal's unemployment rate was about 12 percent. Today, it is about 17 percent.
The unemployment rate in Spain has set a new all-time record of 27 percent. Even during the Great Depression of the 1930s the United States never had unemployment that high.
The unemployment rate among those under the age of 25 in Spain is an astounding 57.2 percent.
Due to an absolutely crippling housing crash, there are approximately 3 million vacant homes in Spain today.
Things have gotten so bad in Spain that entire apartment buildings are being overwhelmed by squatters...
As I wrote about the other day, child hunger has become so rampant in Greece that teachers are reporting that hungry children are begging their classmates for food.
Our politicians can try to kick the can down the road for as long as they can, but at some point the consequences of our foolish decisions will hunt us down and overtake us. The following is what Peter Schiff had to say about this coming crisis the other day...
"The crisis is imminent," Schiff said. "I don't think Obama is going to finish his second term without the bottom dropping out. And stock market investors are oblivious to the problems."
"We're broke, Schiff added. "We owe trillions. Look at our budget deficit; look at the debt to GDP ratio, the unfunded liabilities. If we were in the Eurozone, they would kick us out."
Schiff points out that the market gains experienced recently, with the Dow first topping 14,000 on its way to setting record highs, are giving investors a false sense of security.
"It's not that the stock market is gaining value... it's that our money is losing value. And so if you have a debased currency... a devalued currency, the price of everything goes up. Stocks are no exception," he said.
"The Fed knows that the U.S. economy is not recovering," he noted. "It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode." Read More...
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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.
