There’s no better store of value and hedge against financial uncertainty than physical gold, silver, platinum, and palladium. Readers of GoldStockBull probably don’t need to be convinced of this.
This month has seen some notable developments in gold and silver news.
COMEX Gold recently set a record for its ratio of paper contracts to physical gold held in vaults.
The Reserve Bank of India (RBI) has begun buying gold for the first time in nearly ten years. The US Mint has seen dramatic increases in sales of its most popular gold and silver coins. And the trend toward de-dollarization marches on as Turkey and Russia vow to stop the US dollar dead in its tracks.
COMEX Gold Hits New Record for Ratio of Paper Contracts to Physical Vault Storage
It’s not exactly silver and gold news that the COMEX is an illegitimate fraud. COMEX is a broken price-discovery mechanism easily manipulated by banks with the ability to flood the market with paper shorts and drive the price down as they please. The COMEX price has very little to do with the actual supply/demand reality of any commodity. It’s called a price “fix” for a reason.
Dr. Paul Craig Roberts explained the problem quite succinctly in a 2014 blog post:
The evidence of gold price manipulation is clear. In this article we present evidence and describe the process. We conclude that ability to manipulate the gold price is disappearing as physical gold moves from New York and London to Asia, leaving the West with paper claims to gold that greatly exceed the available supply.
This week we were presented with further evidence for this fact. The COMEX ratio of paper gold to physical gold hit a new all-time high, proving that in order to keep the GLD/USD price stagnating, an excess supply of paper contracts has been necessary.
AND COMEX GOLD HITS ANOTHER NEW ALLTIME HIGH!!!
(No, not in price but in fraud and deception where there are now 295 digital ounces for every ONE ounce of registered gold in the vaults.) pic.twitter.com/DmsZ6qbAu0
— TF Metals Report (@TFMetals) September 5, 2018
Reserve Bank of India Buys Gold for First Time Since 2009
The Reserve Bank of India (RBI) added 8.46 metric tons of gold to its vault during the last financial year that ended in June.
India’s central bank buying gold is a big deal because unlike the central banks of many other large Eastern economies like Russia and China, the RBI doesn’t regularly trade in gold. It seems something has made them change their mind as of late.
“The addition of gold to RBI’s forex reserves is probably a diversification of assets for their deployment, keeping in mind both the build-up of reserves in 2017 as well as the evolving global risks, including market volatility and rising policy rates in the US,” said Saugata Bhattacharya, chief India economist at Axis Bank.
Indeed, rising rates in the largest debtor nation in the world in addition to increasing geopolitical tensions and overall market volatility give anyone a good reason to acquire physical gold and silver.
U.S. Mint Gold and Silver Sales Soar
In August of 2018, the US mint experienced a buying frenzy for two coins in particular – the American Silver Eagle (ASE) and the American Gold Buffalo (AGB). Exceedingly low prices coupled with increasing trends toward de-dollarization have likely played a role in this huge surge in demand.
American Gold Buffalo Sales in August Exceed That of 2017 Total
Sales of AGBs totaled 20,000 in August 2018, as opposed to just 3,000 in 2017, meaning these coins saw an increase of 566% in sales.
August was one of the best months on record for the coin during its 12-year history. Sales hit a low in 2017 at 99,500 total coins sold for the year.
This might have had something to do with the fantastic crypto craze of 2017 cannibalizing demand for gold and silver. Investors now appear to be rotating back into physical metals.
American Silver Eagle Sales Hit Highest Number Since August 2015
Sales of ASEs shot up almost 73% in August compared to July of this year, and nearly 50% compared with August of 2017.
August 2018 marked the highest total number of ASEs sold in August since 2015. 1.53 million ASEs were sold this August, compared with 4.94 million in August of 2015 (the best-selling month on record).
The US Mint temporarily sold out of ASEs this month, according to SilverDoctors.com.
De-Dollarization – Gold and Silver News
These are troubling times for the US empire.
Fueled by the world reserve currency, US hegemony has never quite been threatened by so many key players all at once. And the ferocity with which these influential countries have been stating their intentions to ditch the dollar is unprecedented.
Turkey even went so far as to call the US a “wild wolf.” And it seems some other nations agree.
As mentioned in a previous article, Russia has praised the Lord that the US has further extended her sanctions. The Russians do not like having their markets meddled with, and they have promised to respond in kind.
Gold and Silver News Roundup
In conclusion, this week’s gold and silver news has been bullish.
The COMEX numbers show the scarcity of physical gold. India’s central bank buying gold marks a stark departure from their normal behavior. Sales at the US mint show that demand for physical gold and silver is high. And the march toward de-dollarization illustrates the real risks inherent in the current fiat system.
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