Tuesday, October 20, 2015

Shortages in Gold and Silver Very Quickly

Well, of course you won’t get a rebirth in the stocks unless you get a rebirth in gold and silver. I find it interesting that as we sit here today, though we don’t have the final numbers for the month of July, US mint sales I believe will be up at least 400% year over year.

Gold is dead. But we have a 400% increase in demand.

In the month of July, the US mint stopped silver sales. And ultimately silver sales for July, even though they missed about two or three weeks, I’m going to guess that we’re up at least 100%with two weeks of non-selling.

So you can see that there’s a move afoot here. It’s not just in the US mints or the Canadian mint in Canada, the Perth mint. Even at a company called Sprott Money where we sell coins on the internet, our business was very substantive in July.

So people are coming in to buy. I suspect that as we move into the second half of ’15, the physical demand out of Asia, and particularly India, really gets going. So there are lots of signs that there’s true interest in gold and if the interest in gold comes back, of course the leverage in the stocks is mind-boggling. I mean when the HUI index was last at around 110, the price of gold was probably $400. Today it’s at $1,100.

So you tend to think that there’s a lot of torque here. People actually started to believe that gold was going up. Most people, probably in the market, think gold is going down. So they’re probably pricing maybe $800 in the gold stocks today.

Well, if it ever reversed here, there would be a lot of catching up to do. So that could be very exciting if it were to manifest itself.

I believe that the physical buyers are there. The Russians are buying, the Chinese are buying, and the Indians are buying. People are buying. You would imagine everybody in Europe would be thinking, “OK, we got Greece going on. Is there going to be another one? Where is that other one?” There have been good sales in Europe recently of gold coins and silver coins. So you get enough of a groundswell that we could find out that we have shortages very, very quickly.