With both silver and gold moving to the upside during the first part of 2016 there has been any number of reports, including a great many here at The Daily Coin, documenting the movement. The miners are finally receiving some much needed attention and both metals have responded accordingly.
If we look at an individual data point during this current upside move it’s easy to get excited. As a gold and silver bug, by default that makes me bullish, I want silver and gold to sky rocket!! However, in a recent interview with 50 year veteran, John Embry, he reminded all of us what we have experienced in 2016 is nothing more than a rounding error! That statement brings the big picture back into perspective.
I sat down with Louis Cammarosano, Smaulgld, for our bimonthly update on the gold reserves for China, Russia and various other countries around the world to review what’s changed.
As the silver and gold up swing continues into 2016 we felt it was important to review some of the “bread crumbs” [data points] that create the path to particular conclusions. The individual data points, as stated, can create a lot of excitement. When these points are strung together one can get a sense of what the potential is for “economic Mother Nature” to come charging back into the markets.
Just a couple of points that have revealed themselves over the past several months
– Sale of American Silver Eagles have been rationed since June 2015
– Royal Canadian Mint, like the U.S. Mint, sold out of the very popular Silver Maple Leaf and 10oz RCM Silver Bar in July 2015
– Electronics companies have been approaching silver mines to secure a steady stream of silver
– Silver and gold markets are rigged as admitted, in a court of law, by Deutsche Bank in April 2016
– China has been removing silver dora bars, silver ore and silver concentrates from the market for almost 2 years
– China is purchasing or acquiring controlling shares of mines around the world
These are just a few of the multitude of data points that have materialized in the past year. This trend, it appears, will continue throughout 2016 and beyond. If you combine the above few points with the fact that silver and gold for investment is at all highs you can see the potential for excitement and why people get so excited over the individual data points. These points are beginning to build one on top of the other and creates a much larger picture that all points to one thing – something has to give!
As Eric Dubin, The News Doctors, has pointed out on numerous occasions the likely hood of an overnight change is very low, but the very real prospect of real change coming as a result of a drawn out process makes the data points [bread crumbs] all the more important. These points represent the process Mr. Dubin is referencing.
Give this a good listen and let us know what you think.