Trying Day, Trying Week Make It A Great Time To Buy Gold

“While I’m on the jobs report, the one data point that I did see is that the participation rate went down by .2%. 

Well, I can tell you, .2% of the total workforce available for work, which is about 200 million is like 400,000 people [that] all of a sudden weren’t participating, even though theoretically, 196 [thousand] joined… 

But as you know, I’m not a believer in this data. I think it’s, for the most part, fabricated.”

- Source, Sprott Money

1 U.S. Eisenhower Ike $1 Dollar Coin 1971 to 1978 Collectors Coin

Quarter End Reasons To Own Gold Look Great

“I think the most important feature of yesterday’s events was that we have quarter end today for the financial institutions. Let’s just focus for a second on palladium. 

There were about 2.5 million ounces of palladium that they were short; they had lost a lot money on that. 

All of a sudden, palladium is down 200 bucks, somebody is better off by 500 million? 500 million? For quarter end? Oh, how wonderful! Gee, we made it to the end of the quarter and didn’t lose that 500 million… I think quarter end had a lot to do with this.”

- Source, Eric Sprott

EISENHOWER (IKE) DOLLARS SET OF 4 DIFFERENT DATES BETWEEN 1971-1978

Don't Let the State Take Your Assets

Even if you've largely opted out of the financial system to reduce systemic risk to your nest-egg, what must you do to prevent your hard-earned hard assets from being taken by the state anyway? 

Rick Rule of Sprott visits Reluctant Preppers this first time to explain why physical precious metals are different, and what additional principles you should incorporate in your plans - and even your location - to protect what you've saved!

- Source, Reluctant Preppers

Three Steps Forward, Two Steps Back

 
“The thing I found most interesting is how all of a sudden, on the financial networks, the narrative has changed. And the narrative, in the words of the data folks, always follows performance. And the narrative now is: ‘Oh! Yields are going up. Stocks are going up. We must have some kind of economic recovery going on!’ … And all of a sudden the need to have gold is diminished. I would suggest that the reason we’ve had this turn… is because the People’s Bank of China instructed their banks to lend 30% more to small businesses this month.”

- Source, Silver Doctors

Synchronized Global Decline, Bad for World, Good for Gold

“It’s worth thinking about this funny situation we have in the world, where everyone’s solution to economic weakness is printing money. The Chinese did it in January. The ECB did it. 

Obviously, the Fed has changed their strategy here. And it’s something that will have unintended consequences. You just can’t print money to solve problems… Who’s going to pay the debt?”

- Source, Silver Doctors

Eric Sprott: Lots of Lousy Economic Data

“Lots of lousy economic data. But it’s just the COMEX, man… Luckily, today we’re back up a little. Maybe we’ll get some sanity back in the market. 

But it’s frustrating to have to sit by and watch it. And as I thought about what happens, here we have gold going down 1%. 

The stocks went down 3%! The stocks whose options are expiring today went down 3%. 

When you have an option, it’s that fine line between making money and not making money. 

That last 3% can wreak a little bit of havoc. It’s sickening that it happens. 

It’s just the commercial banks ripping off their customers again… for the sake of today’s profits.”

- Source, Eric Sprott via Silver Doctors

Beware The Ides Of March? What Stock Prices Are Trying To Tell Us

As we barrel towards the March FOMC meeting, the economic outlook continues to be lousy. Eric Sprott returns to break down all the gold and silver news you need to survive.

In this edition of the Wrap-Up, you’ll hear:

• What the U.S. presidential race means for gold
• Why you should be afraid right now
• Plus: Eric answers your questions about the mining shares

- Source

The Operative Word For Gold & Silver? Patience

“I’m quite surprised, when you think of the 180-degree turn from about three months ago, and we really haven’t accomplished a lot in gold yet. 

And the more I think about what other people—what investors— must be thinking in the world about what’s happening here… they’re all buying bonds and the yields are going down. As you’ve mentioned, the yield curve gets inverted. 

They’re buying stocks, and quite frankly, I think they’re buying gold. But we have some forces at work in the COMEX that aren’t quite letting us get to where we think we should be.”

- Source, Silver Doctors

The Only Panel Talk On Gold And Mining You’ll Need

Rick Rule, CEO of Sprott U.S. Holdings, joins forces with Amir Adnani, chairman of GoldMining and CEO of UEC, in this panel discussion on the hottest headlines of the gold industry today.

Topics range from the Barrick-Newmont takeover deal, Trump’s third year in office, and their outlook on gold and uranium prices.

- Source, Kitco News

Warren Buffett Doesn’t Need Gold, But You Do

An investor on the caliber of Warren Buffett most likely doesn’t need extra insurance on his portfolio, but that doesn’t mean that it’s not good practice to own gold as a hedge, said Rick Rule, CEO of Sprott U.S. Holdings. 

“Were I as smart as Warren Buffett, were I as disciplined as investor and as good an analyst, I probably wouldn’t need gold either. Part of what gold does is it protects us from our own worst instincts,” Rule told Kitco News on the sidelines of the PDAC 2019.

- Source, Kitco News

What The Latest Numbers Mean For Gold And Silver

“There are lots of reasons to worry about where we’re all going. We’ve seen those downgrades, in Europe, of the GDP. We see Chinese data that gets weaker all the time. 

We see weakness in the U.S. in terms of industrial production and PMIs and things like that. So, yeah, I think that stocks could easily roll over.”

- Source, Sprott Money

The Magic Palladium Bullet

Over the past few months, we've written frequently about palladium and the threat it poses to The Banks' Fractional Reserve and Digital Derivative Pricing Scheme. As palladium prices are continuing to rise, we thought it best to explain this dynamic again today.

A few years back, my friend Max Keiser coined the phrase "buy silver, crash JP Morgan". Back then it was hoped that silver could be a "magic bullet", where physical demand would expose and crash the current fraudulent pricing scheme. And it nearly worked, too, as a massive Commercial short squeeze in 2011 nearly led to a runaway price spike. Only through the direct, official intervention of the CFTC and CME was price reversed and the crisis averted.

In the eight years since, JP Morgan was approved to open their own COMEX silver vault, and they now store nearly 150,000,000 ounces of silver for use against any potential price squeeze. So at this point, the idea of crashing or breaking The Banks through silver seems unlikely. On any sustained future rally, JPM can simply deliver their silver stockpile in an unwind of their short position and, for them at least, a repeat of 2011 can be avoided. Here's just one article that we've written on this subject:https://www.sprottmoney.com/Blog/jpmorgans-dominat...

But that's just silver. The Banks are still exposed through the identical pricing schemes that are applied in gold, copper, platinum and... palladium. And this is where 2019 could get very interesting.

Since last August, a physical supply squeeze has been evident in palladium. How do we know that this situation is due to a physical metal deficit? 

Two things: 

1. Extraordinarily high lease rates for physical palladium in London, where one-month lease rates in 2019 have occasionally been in excess of 20%.

2. Full backwardation of the futures board in New York. Backwardation (where spot prices exceed future prices) is extremely rare in the commodity sector, particularly in the precious and industrial metals, and it is almost always indicative of a supply squeeze. See the chart below.

And you can see this on the daily price chart too. Note that the advance in palladium is NOT some sort of parabolic speculative blow-off. Instead, what you see below is an unrelenting grind higher due to an ever-tightening vise of dwindling physical supply.

Having established that this price rally is primarily due to a shortage of physical palladium, please take a moment to ponder this next bit of information...

For COMEX silver—which was hoped to be the "magic bullet"—there are currently 296,000,000 ounces of silver stored in the COMEX vaulting system. This compares to a total COMEX silver contract open interest of 220,000 contracts. At 5,000 digital ounces/contract, the ratio of leverage of digital to vaulted physical is3.72 times. Stated another way, there are 3.72 ounces of tradable silver exposure for every one physical ounce in the vaults (both eligible and registered).

For COMEX gold, there are reported to be 8,221,512 physical ounces in the COMEX vaults versus a total open interest of 480,000 contracts, representing 48,000,000 ounces of digital gold. That makes the ratio of digital to physical leverage 5.85 times.

Now check this. For COMEX palladium, there are reported to be just 42,583 ounces in the vaults. Again, that's BOTH eligible AND registered. However, there are currently 28,846 contracts of open interest. At 100 digital ounces per contract, that's 2,884,600 ounces of digital palladium exposure. Applying the same math as above, we find that the COMEX palladium market exists upon leverage of 67.3 times. Hmmmm... how about that?

What's the point? In 2019, do you want a "magic bullet" and something that could lead to a force majeure declaration and exposure of The Banks' fraudulent schemes? Watch palladium! What do you suppose will happen if, sensing Bank blood in the water, the "Bond Vigilantes" of yesterday become the "COMEX Vigilantes" of tomorrow? That's the point.

Should the LBMA/COMEX palladium market fail and collapse, sensible people and institutions around the world will be correct to conclude that gold and silver operate under an identical pricing scheme. If there's not enough physical palladium to cover the Banks scheme, and thus a price squeeze, then there's not enough physical gold and silver either.

And there, my friend, is your magic bullet.

Of course, The Banks may still be able to wriggle off the palladium hook. Perhaps they can collapse price through unbridled derivative issuance? Maybe a fresh supply of palladium will suddenly be unearthed? But if not, it's hard to see how this doesn't end in chaos for The Banks. And if that chaos extends to gold and silver...

This year and next are already pegged to provide the best gains for gold and silver investors since 2010-2011, as central banks capitulate, interest rates are cut and QE programs re-started. Now throw in some market collapse and possible force majeure declarations, and you've suddenly got a recipe for considerable price gains in the months ahead.

- Source, Craig Hemke via Eric Sprott's, Sprott Money