As you probably know already, the world is on a precious metal buying spree with no signs of slowing down. As you also probably know, the world is a sh*t-storm of uncertainty, and Bernanke isn’t really the best confidence-man, as this recent CNBC poll shows:
Rest assured, the rest of the world feels the same way. After a couple hours of research I have found my mind made up, 2008′s big brother is here, and he doesn’t look too happy. I would speculate on this further but my PM dealer is getting impatient, he’s already pissed I called him so late.
Enjoy the latest:
Lear Capital: China’s Gold Buying Spree Continues
On May 19, a Financial Times article reported on data released by the World Gold Council that showed China bought 93.5 tonnes of physical gold in the first quarter of 2011. More interesting, however, is a comment made later in the article that China’s gold imports in the first 4 months of 2011, exceed 200 tonnes. Do the math. That would mean China bought more gold in April than they did during the entire first quarter of 2011.
From a previous Fox News report we learned that Mexico was also busy buying gold in the first quarter of 2011. Per this report , 100 tons were purchased by the Bank of Mexico in February. All these transactions make the reported Soros’ transaction of 10 or 15 tonnes of gold minuscule. Make no mistake, gold demand around the world is strong and growing.
Indian Gold And Silver Imports Surge By Stunning 500% In May
India’s heretofore “insatiable” appetite for precious metals will need to find a new adjective to describe it, after it surged by an absolutely unprecedented 500% in May MoM, and 222% compared to May of 2010, touching on a massive $8.96 billion in imports in the past month. Putting this number in perspective the yearly average Indian imports are about $22 billion: in one month the country will have imported about half its average quota for the year!
And while inflation may have much to do with it, events like the Sensex flash crash from last night certainly are not helping matters: “The gold story is puzzling” added financial analyst A S Kirolar. “Consumers are shying away from stocks and bonds and heading to safe assets like gold and real estate, but one cannot understand this given the meagre 12% growth in imports of petroleum and oil products.”
Greeks Turn Savings To Gold And Perth Mint Silver Coin Sales Surge To Record On Safe Haven Demand
Gold is lower in dollars but higher in euros and has reached new record highs in pounds sterling at £958.25/oz. Gold is being supported by strong and increasing demand internationally.
Sterling has fallen after the BoE minutes raised concerns of further quantitative easing and currency debasement. The Bank of England looks increasingly likely to maintain its ultra accommodative monetary policies. Interest rates may continue to remain at multi century lows and the BoE is again considering more printing of money to buy government debt.
Silver-Coin Sales Booming at Perth Mint on Demand for Haven
Silver-coin sales from Australia’s Perth Mint, which was founded in 1899 and processes all of the country’s bullion, have surged to a record as buyers seek to protect their wealth with the metal known as poor man’s gold.
The mint sold 10.7 million 1-ounce silver coins since July 1 last year, according to Sales and Marketing Director Ron Currie. That’s 66 percent higher than the previous full fiscal year and about 10-fold more than five years earlier. Sales of 1- ounce gold coins will be close to a record, he said.
The soaring demand adds to signs investors are stepping up precious-metal purchases as Europe’s governments tackle a sovereign-debt crisis and central banks led by the U.S. Federal Reserve print cash to stimulate their economies, potentially devaluing paper currencies. Silver, the second-best performing commodity over the past year, rallied to a record in April.
#5. Silver Supply and Demand
The Truth About Silver: There’s Tons Of Real Demand, And We’re Not Close To A Bubble
There are some that since 2001 have doubted the bull market in precious metals. In these past six weeks, however, everyone from former silver bulls to those who sell freeze dried chicken sh*t for a living are out shrieking the bears on the shriek factor. Do a google search and you will find hundreds upon hundreds of references to Hunt brother days. Bubble. Hunt Brothers. Suckers. Bubble. 1980. Bubble. Lose money. Bubble.
What the heck is going on???? Is the sky falling? Should we retreat?
And if that doesn’t convince you:
Team up with the Silver Doctors and Propagandize financial sanity with the Silver Viral Project.
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