Overnight, gold prices dropped to a 5 year low as $2.7 billion worth of gold futures totaling around 700,000 ounces of gold futures, “paper gold”, the equivalent of 1/5th of a whole days trade in a normal session was dumped in less than two minutes.
This massive concentrated selling in the futures market again led to sharp price falls and at one stage gold fell almost 5 percent to below $1,100 per ounce. Gold last reported a.m. is $1104.50 and silver is $14.82.
Beginning in April 2011 as gold hit a $2,000 spot, precious metals markets began to be hammered by sellers dumping millions of ounces in gold and silver futures at specific trading times when markets were typically slow. Since that date bullion bankers have systematically opened the gate with massive futures sells enticing the “herd” to follow suit generating more losses.
Last week we reported that Barrick Gold Corp., the world’s largest gold producer was selling three of its mines in hopes of generating $3 billion to offset a debt of $12.9 billion owed by the company. As bankers continue shorting gold futures, we’ll see mining companies cannibalize their assets attempting to ride the storm out until profits return, and they will.
Decreased prices have resulted in strains in the physical silver markets for 3 years and many dealers are now waiting as long as 4 or more weeks for the Silver American Eagle. Gold Goliath has always suggested clients consider the Silver Canadian Maple Leaf as it is available for less money than the Silver American Eagle and has a fineness of .9999. Generally we can deliver Silver Canadian Maples within 7 days after lock-in but that timeline has now been increased to 3 weeks.
Silver physical demand increased by 164 million ounces over a period of 10 years by December of 2013. The growth is primarily driven by silver’s usage in industrial applications. In 2014, global silver supply was 868 million ounces and 2015 is expected to see a decline to 850 million ounces. Mining companies believe we could reach peak mining capacity in less than 4 years.
JP Morgan is shorting paper gold and silver prices at COMEX while at the same time recently purchasing millions of ounces of physical silver. What’s good for the goose is good for the gander.
Both gold and silver remain available below production costs. Mining company losses can be our gains while supplies last.
Give us a call to begin the process of protecting your assets while they are still, your assets. 1-800-577-3195 Ext. #1
Gold Goliath is not your typical gold dealer.