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
Before we get into all of that, let’s look at today’s precious metals pricing.
Gold - $1223.29 down $30.61
Silver - $18.92 down $0.75
Platinum - $1327.00 down $50.00
Palladium - $683.50 down $4.00
Physical Demand for Gold is Gearing Up At An Alarming Rate
Here’s a riddle for you…
When folks sell their electronic-traded-fund (ETF) gold and other electronic bullion, where does it go?
Does the bullion zap away into the nether regions of the internet? Does it move from one clandestine warehouse to another? Maybe it heads to a government coffer?
You may be surprised where one gold research firm thinks the “sold” metal may be heading. Plus, as the layers of the onion fall off, you’ll likely be swayed into my line of thinking: now’s an important time to get physical in the gold market…
Before we answer our above riddle, let’s take a look at some recent, surprising trends in the gold market.
Even though there’s been a downturn in the price per ounce, physical demand for gold is gearing up — at an alarming rate.
Here’s what is happening, according to a recent report from the World Gold Council:
• Mints have uniformly reported being swamped with orders.
• Total number of American Eagle coin sales in the month of April were the highest since June 2010 and represented the highest ever dollar value recorded by the mint.
• The UK mint reported a tripling of coin sales in April.
• The Perth mint reported the highest demand levels in five years and that the mint was working through weekends to satisfy demand.
• Premiums in regional markets have been pushed to exceptional levels
• In India, consumers have flooded into the market, viewing the lower prices very much as a buying opportunity, with a sudden rise in jewelry sales reported from retailers across the nation.
• Japanese jewelers reported a surge of buying [...] The top jewelry retailing chains reported up to six-fold increases in volume with buying heavily outweighing selling.
• Some refiners report that they continue to work at high levels of capacity to meet demand. There is a lack of recycling at these price points and large bars have been imported to meet shortages. This is particularly true for those refineries supplying Eastern markets.
• Transport capacity has also been strained, as the ability of the global supply chain to deliver gold to meet end user demand is limited and difficult to ramp up in a short period of time.
Ha! You can’t miss with that many bullets! Indeed, demand for physical metal is on the rise this year. So no matter what you’re seeing on your trading screen or hearing from the market sentiment, it turns out physical buyers like bargains and gold is flying off the shelves!
Whether it’s individuals who are bargain hunting, or central banks looking to diversify away from the U.S. dollar, the ounces are getting gobbled up at an alarming rate.
It wouldn’t be a stretch to say 2013 is the year of “physical fever!”
When folks sell their electronically traded fund (ETF) gold and other electronic bullion, where does it go?
Indeed, it doesn’t just disappear into cyber-space, nor does it look to be headed from one secret vault to another. Instead, we’re seeing the flow of bullion headed towards two distinct places: savvy central banks are picking up the metal and, more and more, we’re seeing the metal flow to buyers in the east. Read More...
19 Reasons To Be Deeply Concerned About The Global Economy As We Enter The 2nd Half Of 2013
Is the global economic downturn going to accelerate as we roll into the second half of this year? There is turmoil in the Middle East, we are seeing things happen in the bond markets that we have not seen happen in more than 30 years, and much of Europe has already plunged into a full-blown economic depression. Sadly, most Americans will never understand what is happening until financial disaster strikes them personally. As long as they can go to work during the day and eat frozen pizza and watch reality television at night, most of them will consider everything to be just fine. Unfortunately, the truth is that everything is not fine. The world is becoming increasingly unstable, we are living in the terminal phase of the greatest debt bubble in the history of the planet and the global financial system is even more vulnerable than it was back in 2008.
#1 The velocity of money in the United States has plunged to an all-time low. It is extremely difficult to have an "economic recovery" if banks are not lending money and people are not spending it...
#2 The fall of the Egyptian government threatens to bring even more instability to the Middle East. In response to the events in Egypt, the price of oil rose to more than 101 dollars a barrel on Wednesday.
#3 Every time the average price of a gallon of gasoline in the United States has risen over $3.80 in the past three years, a stock market decline has always followed.
#4 As the world becomes increasingly unstable, massive citizen protest movements have been rising all over the globe...
#5 The European sovereign debt crisis is flaring up once again. This time it is Portugal's turn to take center stage...
#6 It is being projected that Italy will need a major EU bailout within six months.
#7 Bond investors are starting to panic. In fact, even prominent firms such as Pimco are seeing investors pull massive amounts of money out right now...
#8 Central banks are selling off staggering amounts of U.S. Treasury bonds right now.
#9 U.S. mortgage bonds just suffered their largest quarterly decline in nearly 20 years.
#10 We continue to buy far more from the rest of the world than they buy from us. The U.S. trade deficit for the month of May was 45.0 billion dollars. Read More...
For the best source for acquiring gold and silver please contact Silvertowne at 1-877-477- COIN, that’s 1-877-477-2646 or you can visit us at www.silvertowne.com. Silvertowne has been a trusted precious metals and numismatics dealer since 1949.
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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.
