The number of reports showing a decline in silver and gold production seem to be growing. While the production is declining the demand for physical precious metals is growing.
China, Russia and India have been increasing their volumes of imports and acquisitions of, particularly, physical gold for the past decade. In 2017 we are seeing even higher demand in these three nations.
On the other hand we are also seeing a rise in the amount of digital gold, backed by physical gold, through a variety of channels. James Turk launched GoldMoney, which is a form of digital gold that allows you to acquire physical gold and spend/transfer using what looks like a debit card. In China the WeChat app allows account holders to transfer digital gold, using their phone or other digital device to send gold to anyone that has the WeChat app. Both of these digital forms of gold allow the user to convert their digital gold into physical gold at any time they wish. This is a huge change in the physical gold market.
In early April 2017, the criminals at the CME Group announced they too, were getting into the digital gold space and would be launching later in 2017 a blockchain app that will allow the user to acquire fractional (this is where the criminal aspect comes into view) gold coins from England’s Royal Mint. The gold market is changing. The old ways of acquiring gold is morphing into the digital age and morphing at an ever increasing pace.
All of the above news has all been shown just in the past 18 months or less. These changes do not take into account the new physical gold markets that were recently announced. Moscow, Beijing and Dubai will be opening new gold markets within the next year or so. Dubai much sooner, with Moscow and Beijing coming online in 2018. These new markets, combined with the explosion of digital-to-physical-to-digtial gold apps and cards should begin impacting the market over the course of the next 18-24 months, if not a lot quicker. Only time will tell as the impact these new markets and means of acquiring and transferring gold will actually have on the global gold market. The main point is, the gold market has now crossed a line that will be difficult to cross back over.
With all these new markets, new ways of handling physical gold we learn from Andy Hoffman, Miles Franklin, that gold mine production is not only down but is projected to continue to drop over the next several years. We have past the point of peak gold and silver or we are reaching it in a big hurry. Beginning in 2015 gold production has dropped and will continue dropping. Silver will follow this same course.
Andy and the Miles Franklin Team recently hosted their 3rd Silver Webinar that included David Morgan, Steve St. Angelo and Andy Hoffman. During this webinar they discussed, as Andy and I did during this interview, gold and silver production dropping like a stone.
As Andy noted during the interview:
“We predicted (during the Silver Webinar) production will continue to fall for years to come. In fact in gold, silver is little more difficult to forecast because it is mostly a secondary metal so there’s not a lot of forecast out there, but in gold, even the mainstream is out there. I’ve written about the forecast from Credit Suisse, Standard and Poores. Gold production will fall 25% in the next 7-8 years, world wide. It (gold) already peaked in 2015, like silver, and it’s forecast to fall 25%. This is at a time when every other commodity is surging. The only other commodity that I can think of that production will be falling, besides gold and silver, is platinum.” Andy Hoffman – The Daily Coin
Andy, while not feeling 100% today, did manage to deliver 100% of what Andy has to offer! During the next 21 minutes he leaves nothing behind and tells it like it is.