Gold last reported p.m. is $1204.60 down $4.70 and silver is $16.31 down 18 cents.
According to the U.S. Mint, total bullion sales for February reached 49,000 ounces. Year to date the mint sold 245,000 ounces of gold down 17 percent compared to the first two months in 2014. Silver sales remain tremendous as 3.022 million ounces of Silver American Eagle coins were sold last month alone. We’ve advised clients over the past 3 years that silver would outperform gold and it continues to do so. Silver sales have been stronger this year than 2014 selling a record high of more than 9 million ounces since January 2015. How long prices on silver will be pushed below production costs is anyone’s guess but silver demand will continue to dominate the precious metals markets regardless.
Things in Greece go from bad to worse as Reuters reports that Greece will be going after cash reserves in pension funds and other public sectors to cover its funding needs. Greece plans to use short term repo transactions to transfer the cash but a government official said they could not be used to pay the International Monetary Fund. With no aid from lenders Athens will possibly run out of cash in the coming weeks as it faces a 1.5 billion euro loan repayment to the IMF this month. Without going further into debt or selling its own soil, Greece has no hope of seeing economic prosperity in the coming years.
The new government submitted draft legislation to cope with the growing humanitarian crises in Greece. The draft contains measures for free food, electricity, rent and health care. Add cable T.V. and it will match the entitlement system in the U.S. lock, stock and barrel. Let’s be clear, if no one comes to the aid of Greece, there will be no possibility that the “draft” will be anything more than a draft. It would be a fair assumption that the proverbial debt can has reached the end of the road. If only Greece had the Federal Reserve then all would be well. No central bank in the world is better at moving debt further into the future than the Fed. But, because this is the U.S., nothing like this could ever happen here. Besides, we only owe 18 plus trillion, “for now,” that will never be paid back. If only debt never wanted to be paid back.
Silver is in scarce supply as industrial demand soars to record levels once again in 2015. Silver is used in industries from electricity and medicine to automobiles , lap tops and cell phones. Without silver, industry shuts down.
While we are pro-gold we remain even more pro-silver. The days for purchasing silver below production costs are coming to an end in the not too distant future. The laws of supply and demand always work.
If you are interested in purchasing silver either in or outside of a precious metals IRA, give us a call. While supplies last we are offering special incentives on the 1 ounce Silver Canadian Maple. These special discounts are no longer available for the 1 ounce Silver American Eagle.
Gold Goliath now accepts all major credit cards as we utilize the services of PayPal. Keep watchful for our all new website coming over the next few weeks.
Gold Goliath is not your typical gold dealer.