sd weekly metals and markets - mm

SD METALS & MARKETS

With gold and silver prices smashed through significant levels after the London close this afternoon, Craig Hemke joined the show to analyze the brutal take-down:

  • Smash timing suggests tightness in London physical market
  • Price manipulation is like pornography – its hard to define, but you know it when you see it, and today was blatant
  • Hemke: “these bastard banks are backed into a corner!” – are we witnessing the cartel’s last ditch attempt to stop an epic gold and silver bull market?
  • LME, Goldman Sachs, and World Gold Council collaborate to launch “physical” un-allocated gold contracts
  • Hemke explains the factor that has become the single biggest fundamental reason to own gold and silver bullion

Catch this week’s show for Hemke’s epic rant and spot-on analysis:

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DOC’S GOLD & SILVER MARKET UPDATE:

With gold prices smashed back below $1350 Friday afternoon (for the 2nd week in a row), demand for gold barsas well as bullion such as Gold Maples , Gold Eagles , and Gold Buffalo coins is spiking once again.

In Silver:

While SD Bullion’s sales remained relatively strong this week silver bullion sales are definitely down as a whole throughout the industry, even with the ANA’s World’s Fair of Money drawing global attention this week in Anaheim.

Retail demand did see a strong uptick on Friday however as silver prices were smashed back under $20 towards $19.50.
Wholesale premiums on 90% Junk Silver Coins continue to soften, indicating that supply continues to exceed demand over the short term. Silver Eagle sales remain subdued:  The US Mint announced the end of Silver Eagle allocations in July, meaning Silver Eagle coins could be purchased in any quantity desired by the AP’s for the first time in 13 months. 

Last week we reported The Mint sold only 75,000 Silver Eagle coins during the first week of August – a figure we labeled as “ridiculously paltry” considering SD Bullion alone sold nearly 30,000 Silver Eagles last week.  

This week, The Mint sold only 150,000 coins, bringing total August sales numbers to only 225,000 coins for the first half of the month.  At this pace, The Mint may not even sell half a million coins in August – approximately 10% of the monthly sales numbers for the first 5 months of 2016! 

The US Mint’s numbers likely do not reflect end retail demand however, as we believe the Mint’s Authorized Purchasers have continued their inventory reductions.
As stated previously, we expect this trend to continue over the next 45-60 days, absent a shock to the markets. 

This brings year to date Silver Eagle coin sales to 27,845,500.

The US Mint is set to release the 30th Anniversary 2016 Silver Eagle Proofs in mid-September, which will likely be one of the most highly sought after Silver Eagle proofs in recent years.

Perhaps coinciding with the AP’s reaching their inventory reduction targets, don’t be surprised if retail bullion demand accelerates as the calendar turns to August and September – particularly if Deutsche Bank and or the Italian Banking System suffers a liquidity crisis.

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Mr. Dubin is the Managing Editor of TheNewsDoctors.com. He has 25 years of experience as an independent buyside securities and global macro analyst. He has well over a decade of experience as a financial journalist, editor and political analyst. He’s primarily an autodidact, but his formal education includes degrees in economics, international relations and MBA. He welcomes feedback on his articles and will make an effort to respond to comments. Email Eric by sending to “Eric” and then @TheNewsDoctors.com. He can also be “followed” on Facebook: https://www.facebook.com/EricDubin

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