Category: Silver

Hi ho Silver, away.

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And we are not talking about the Lone Ranger’s horse.

For the past 3 years we have been great advocates of silver. And with good reason. It is arguably the most amazing metal on Earth.

Silver is the best conductor of electricity of all the metal elements – making it a modern necessity for the myriad of electronic devices we have. Smart phones, computers, LED monitors and televisions.

Silver is an excellent conductor of heat and has a particular light sensitivity making it ideal for photovoltaic cells and photography, including radiography.

Silver has antibacterial properties. In seafaring days of old, two silver coins would be placed in a water barrel to keep the water fresh and microbe free. These days it is used for surgical bandages and in advanced antimicrobial nanotechnologies. Plus, it gets added into sports clothing to keep athletes smelling nice.

Silver is highly malleable and ductile and it does not rust. As such silver has been used a monetary metal for going on 3,000 years.

And as you can’t print silver – silver is indeed ‘Good Money’.

So why the excitement?

Image credit

For many a Silver Stacker it has seemed a very long time for the market to again recognise the true value of this amazing metal.

Three months ago the silver spot price was a mere $US15 per ounce and this was the middle of a pandemic. We say ‘mere’ as silver was trading at $US50 back in 2012 and even back in the 80s.

There were many reasons put forth on why the price of silver was so low – which we will not go into now. More importantly for the silver investor and stacker however, the silver price is now flying.

Between May and mid-July the price saw a steady rise to $US19. Over the past month it has really taken to the sky. Just 12 hours ago it looked as though it would break $US28. As I type this post now it has broken $US29 and is tapping on resistance at $US30.

In the midst of a global pandemic, geopolitical uncertainty and unprecedented levels of currency printing – investors are once again turning to the tried and tested safe haven that is SILVER.

GOLDSMITH.

To get your head around the current silver story and the physical silver shortage we are seeing – we suggest you start here.

https://goldsmith.money/2020/03/20/the-run-on-gold-and-silver-has-begun/

Gold sets new record high…

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bullion gold gold bars golden

and conditions are just right for more.

For those of you who have been following this blog for some time, the headline above will be of no surprise. Yet it will be very exciting nevertheless.

Yes – it has happened. The gold spot price has broken the previous intraday high of $US1,923.70 per ounce set in August 2011.

bullion gold gold bars golden
Photo by Pixabay on Pexels.com

At this time of drafting this blog post, the gold spot price is $US1,46.92.

With unprecedented levels of money printing; geo-politics tensions; political and civil unrest; coronavirus; and social media warfare – the environment seems to be just right for a growing gold price. And this could be the case for many, many months to come.

So hold onto those gold coins.

And for the silver stackers – don’t feel left out. For the silver spot has just rocketed past $US24 an ounce – following a few days of resistance at $US23.

For the reasons outlined above – safe haven demand for these monetary precious metals is HOT, HOT, HOT, right now. Congratulations to the prepared.

Goldsmith.

For more information about the investment potential for gold see the following Goldsmith Money blog articles.

The Gold Factor
Gold destroys stocks and bonds over past 20 years!
The run on Gold and Silver has begun

Silver is shining

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Over $US20 a troy ounce and rising!

Long before silver was being used in your smartphones, television sets and ipads – silver was money, just like gold.

The Silver Institute

Countries over the world have implemented various types of silver monetary standards, at various stages throughout their history. In fact, the US was still using 90% silver coins up until 1964 and 40% silver in their coins until 1970.

Today silver seems to be used for everything but money. Electronics. Solar Cells. Jewellery. Antibacterial clothing and medical equipment. Water purifiers.

However, there is a devoted group of conservatives, called Silver Stackers. Us Stackers believe that one day the world will return to ‘Good Money’ and that silver will have a large roll to play in this. Because unlike paper currency –

You can’t print silver!

And it is relatively scarce – just as money is meant to be.

Today us stackers have cause for celebration. The spot price of silver has finally broken $US20 – the first time since 2016.

Of course, if you are wanting to buy physical silver, expect to pay a lot more than $US20. However, it is certainly nice to see the futures price catching up to reality.

As a part of your Financial Awakening – I suggest you learn all you can about silver.

Goldsmith

The Gold Factor

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A hedge against the printing press!

We borrow the following chart from a Money Management article by Russel Chesler titled ‘The Gold Factor‘. The link to the article is here.

The article begins –

‘With the world mired in debt and economic despair, the price of gold precious metal has rallied to nine-year highs and could soon surpass its all-time high as systemic financial risk grows with every dollar spent by governments trying to stimulate economies.‘

Russel Chesler – Head of Investments at VanEck

And here at Goldsmith Money, we are seeing the world the exact same way.

Previously we have discussed Good Money and the Dollar. We concluded that dollars are not good money, because they could be printed at the will of Central Banks and Governments.

The following chart from abovenoted article is an example of this exact behaviour.

In the past 4-5 months the US Federal Reserve (FED) has printed 3 trillion dollars and flushed it into financial markets. This is $3,000,000,000,000.00!

Since 2002 the amount of currency digitally printed onto the FED balance sheet has risen from $1 trillion to $7 trillion. A 700% increase in the circulating currency supply (stemming from the FED), over a mere 18 year time frame.

Worse still – this is just one nation’s Central Bank. Consider that there are many other central banks around the world dong the exact same thing.

Worried? Well you should be!

All this new currency are new claims on the limited land, resources, products and services around the world. Effectively diluting the current claim of every person who has been saving dollars (or any other paper currency), for their own future economic benefit.

So how might one combat currency expansion of this magnitude? Might we suggest saving in assets which can’t be printed.

Gold – as the article suggests.

Starts July 1972 with initial investment of $10,000

Silver?

Land?

A business selling products or services with an inelastic demand. Primary production perhaps?

Cryptocurrency? With consideration to specific blockchains, their network security and adoption – perhaps?

Let us know what you think in the comments below.

Mass currency printing in various forms has been attempted the world over for 2-3 millenia – and the outcome has always been a disaster. Perhaps this time it will be different though. Perhaps?

However… we at Goldsmith Money, will not be taking any chances.

Goldsmith.


Gold chart thanks to Gold Hub and Silicon Cloud Technologies.



The run on Gold and Silver has begun

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The rush for Good Money will soon be a stampede

According to those in the know – being those speaking with bullion dealers, wholesalers and the mints daily…

‘The shelves are now empty!’

Much like the toilet paper and grocery runs we are seeing at the supermarkets, demand for physical gold and silver is up 10 fold in the past 7 days.

Speaking with a dealer yesterday – they claimed they were experiencing ‘unprecedented account registrations’ as people sought to buy physical. Unfortunately for these new comers, this dealer had no stock on hand and the orders they would take – expect an 8 week delivery time-frame.  

Tuesday night the Perth Mint sent out a message to distributors – they were no longer taking orders for their 100 ounce and 10 ounce silver bars due to ‘unprecedented demand’. Yesterday their website was updated to indicate that they had no silver bullion in stock at all.

There is still gold available, however be prepared to pay $AU2,700+ per ounce plus delivery costs.

Photo by Tim Mossholder on Pexels.com

At this time the gold and silver paper spot prices continue to be the prices quoted by the media.  These paper prices are down. However, there is now a huge disconnect between the physical prices being charged. 

Customers are reporting that dealers who do have stock on hand are charging 25%+ premiums over the spot price for gold, with anything from 50-100% on silver.  As one industry observer put it – ‘the dealers aren’t even looking at the spot prices anymore.’

At present the silver spot price is $US12.50 per ounce. Single ounce Liberty Eagles however are now selling for around $20+ on ebay.

I expect that the news of this surging demand will go mainstream within a week.  At this stage the only discussion is taking place is on Twitter and in other social media sites. 

There have now been a couple of industry articles published explaining current conditions in more detail than I will here – excerpts and links follow.

FXStreet

The disconnect between paper prices for precious metals and demand in the bullion markets has never been clearer. Nervous investors are frantically buying coins, rounds, and bars. Dealer shelves quickly emptied of more popular products and delays are now being quoted on many products – especially in silver.  

https://www.fxstreet.com/analysis/bullion-demand-surges-mostly-cleaning-out-dealer-inventories-202003171653

TEX Metals

The demand experienced industry-wide over the past 5 days has been unprecedented. This is worse than Y2K, 9/11, or the Great Financial Crisis. It is the speed at which demand spiked (seemingly overnight) that has crippled the industry. Volume is up over 10x (in some cases much more) in a matter of days. This has strained customer service, logistics, and – relevant to this article – supply. The industry is built for elasticity. We are used to big spikes in demand. We can handle a 1 or 2 standard deviation move. We can’t handle a 5 standard deviation move in 5 days.

Distributors sold out of stockpiles in 48 hours. Dealer inventory disappeared immediately. Precious metals are the toilet paper rolls of the financial markets – under appreciated until there isn’t much left. 

https://www.texmetals.com/news/demand-shock-the-forces-behind-rising-premiums/

MarketWatch

Sales of the one-ounce American Silver Eagle coins were at 3.1 million so far this month, as of Wednesday, compared with total sales of 650,000 in the month of February, according to data from the Mint.

https://www.marketwatch.com/story/physical-demand-for-silver-spikes-as-price-drops-to-an-11-year-low-2020-03-19

As discussed previously, it is important to hold ‘Good Money’ – not the paper promises which are currently being printed by the trillions. Some people are waking up to this and a new trend is forming. Perhaps for most however, it is already too late.

GOLDSMITH