SD Bullion

Central Banks Main Exit Plan is Massive Inflation

Are NFTs Worthless? This $530 Million Non-Fungible Token Shows They Could Be

Rare Photo From 1978 Before Huge Gold Price Explosion

As we await the next bullish move for the monetary metals suppressed in their derivative COMEX complex with sophisticated London chicanery.

Now is the time to remind you of an era past and gone but not forgotten.

The date of this photo I ripped from Reddit the other day is January 9th, 1978.

The spot price of gold that day was $171.60 per troy ounce.

You can likely deduce that Gold Krugerrand coins and 50 Peso Mexican Onza gold coins were perhaps the savviest gold bullion buy that day at whatever bullion shop this was.

Spot silver was a meager $4.91 oz to begin the year 1978.

That day in this bullion shop looks like 100 oz silver bars at $500 fiat Fed Notes was the shrewdest acquisition.

Within about 2 years time, under severe stagflation, even with a corrupt CFTC, a crisis in fiat currency confidence produced a near 5X multiple in the spot gold price and an over 10X multiple for the spot price of silver.

The then gold-silver ratio ran from just below 40 into the teens. This time in gold silver ratio history, we are coming from heights closer to 80.

I named this week's SD Bullion Market Update as Our Past is Prelude, for real reason$.

You don't ramp your fiat monetary base like this without tremendous repercussions. We will all suffer from this one way or another. Bullion is going to account, in real value terms.

In a few minutes, I will show you further charts and data illustrating how our past is a mere prelude to what is coming.

Turning to potentially timing this upcoming manic phase for silver and gold likely ahead.

I call on the following three charts by an over 45 yr Comex trading vet Michael Oliver and his Momentum Structural Analysis newsletter. 

Here we are looking at month-end & 10-month rolling averages (red line) in silver versus gold. They do this to smooth out the noise of week-to-week volatility.

In bullion bull markets silver often outperforms gold, so we're looking to find the silver breakout points of the past to know perhaps how far we are from seeing it again. 

Here there were two clear breakout points, with a silver short face-ripping mania into early 1980.

Next, the bull runs into early 2011. Here we see two clear breakout points as silver consolidated in the teens for some time in 2010 before tripling in short order. 

Finally the run we are likely to get going not long from now. You can see the pandemic breakout as we ran to $30 oz in not much time from the $12 spot lows. We have been consolidating for 15 months since.

See the green circle over there on the far right?

Michael Oliver and his MSA firm are long silver, and also using call options for even more leverage for this coming silver run.

In the video embedded above, go listen to how Michael answered me in late 2018 when I asked him where he thought this was all going.

Now in the 2020s, for spot silver. The sideways coiling is now 15 months and counting. 

When will we run and blast through $30? 

The longer it takes the higher and more explosive the energy will be in my opinion.

Billionaire derivative trader Paul Tudor Jones argued this week the obvious for any of you out there trying to make ends meet

Fiat currency devaluation price inflation is the #1 threat to us all now.

In real terms, we're not paying record debt levels off nor most of the unsaved-for promises in real terms (hundreds to trillions). And under this fiat Federal Reserve inflationary regime, this decade into the next, bullion is poised to be precious in countless ways. 

Position yourselves prudently. Thank you for watching and visiting us here at SD Bullion.

And as always take yourselves and those you love.

Central Banks Add 392 Tonnes of Gold + Updated Inflation Numbers

The world's largest eastern bullion buyers are waking from their pandemic slumbers as western efforts to bring absolute transparency to the silver price and gold price discovery continue failing and falling on their faces. More on that story later.

Great news this week as I've returned fully to my desk after a short few days touring the Pan-Americana countryside. Meanwhile, the fundamentals, trading price action, and market sentiment for silver and gold have turned for the better.

To start this week, we'll lean heavily on many of Daniel March's latest physical bullion flow tweets, so I can further explain what has been happening.

First, watch what the aggregate central banks do and often ignore the narrative games they play. 

Central banks are on pace to collectively break their record 2019 gold bullion buying this year, 2021.

And now, Poland is gearing up for another 100 metric tonne gold bullion buy to begin 2022. 

The Chinese Shanghai Gold Exchange is delivering gold bullion at volumes not seen since before the pandemic kickoff to start this decade, the 2020s.

Indian gold bullion demand this year is going to rival record volumes hit in the 2010s. See this chart for where 1,000 metric tonnes of gold bullion demand stacks up historically. 

Silver Squeezers and silver bullion bulls out there buck up. The Indian silver demand gorilla of the 2010s may be returning as Metals Focus reports that over 400 metric tonnes were imported into India in September 2021 alone.

Here is where that amount stacks up to the way India bought silver bullion in the 2010s. If and when the Indian nation returns to its average 172 million ounce silver demand levels in this decade, the 2020s, good luck, London, and unsecured ETFs like $SLV and $SIVR changing your prospectuses yet again.

Quickly, this is a reminder. Remember history, knowing the nature of how bullion bull markets with increased prices behave; eventually, increasing demand for near-record high gold prices bleeds over into undervalued silver. 

When the increasingly less poor Indians on the street see gold's price climbing a curved wall, expect many of them will switch their buying preferences to silver, and the import demand levels to increase sharply for Indian silver flows ahead.

Let us move on to the idiocy that is the inflation narrative con game ongoing. 

Long-time silver bull Bill Fleckenstein pointed out how stupid this Bloomberg Opinion headline is; underreported escalating inflation hurts average US citizens and is a crime ongoing for anyone who bothers to look. Actual price inflation is likely running at double digits if we simply take into account the actual escalating prices on rents and housing prices in the USA.

The rigged US gov't's Consumer Price Inflation data has yr over yr shelter price escalations at a laughably low 3.2% increase. But just a few cursory glances at data, and we know that's a lie.

Even the cost-of-living adjustment for Social Security is going up nearly 6% for 2022 as the poorest amongst us often suffer the most under high inflationary regimes.

Meanwhile, get ready for a cold winter full of BRRR fueled escalating natural gas prices to come.

But don't worry, the narrative gamers at the fiat Federal Reserve have no shame as their lies get exposed for all to see, yet again.

Anyone who thinks high inflation is not the primary tool for defaulting on our record debts and not saved for liabilities still, I have a bridge down in the Florida Keys to sell you.

So hop on, figuratively speaking. And let's do some more cruising through the most important bullion market updates for this week. Be sure to share this content with those who you think may also enjoy it.

Full transparency, I am recording this SD Bullion market update on the afternoon of Thursday, October 14th, 2021.

Yesterday, Wednesday morning in the US COMEX open, silver and gold had a snapback rally which put the short sellers on their heels and has given rise to some seriously bullish sentiment across the precious metals complex. 

This week, it will be interesting to see how both monetary metals can close in their respective derivative price discovery markets. Will gold clear and close above $1800 and the critical $1820 an ounce threshold ahead?

Will silver get beyond $24 oz soon?

The lately building gold-silver ratio head and shoulders formation has given way to a fall back towards the mid-60s and perhaps beyond as we come towards the end of 2021 into 2022?

If we take some of the analog 1970s vs. this 21st Century bullion bull market statements I have made on this channel in months and years prior, now is the time to start the valuation climbs.

The 2.5Xs 1970s vs. this 21st Century bullion bull market analog is calling for gold to make a major move now through next month, November 2021. We shall see if the timeframe overlaps accordingly. 

Again, here is a chart I often use here to explain potential timing ahead. 

Remember back to the start of this year 2021, and the record media attention freely given to the bullion industry by the likes of Bloomberg and CNBC as the Reddit #SilverSqueeze got underway late in late January.

Well, a draining of the COMEX has since ensued steadily after that.

The registered amount of available underlying fractional reserve COMEX silver bullion is now under 100 million ounces, down over -50 million troy ounces from its peak before the silver squeeze start.

The Wall Street Silver subreddit now has over 160,000 members and growing. With rabid members committed to figurative wage war this decade by stacking silver bullion for the long haul. 

One of the creative members of the silver squeeze clan, Creflo Silver, points out that it would only take a bit over a mint case of silver bullion delivered to every of the current 160 thousand WSS members, around 618.75 ounces of delivery, to suck the COMEX dry of its currency registered silver bullion pile.

Think back to the start of this week's SD Bullion Market Update video start. Ponder what happens if and when Indian demand returns to its former 2010s levels; combined with that current, there is not much silver bullion to go around the fact.

As well too, while having idled of late, Sprott $PSLV stands ready to take on new inflows and begin jacking up its silver bullion ounce holding levels as the months and years progress.

And, of course, we are not the only ones turning blue in the face with silver bullishness.

Peter Brandt, a long-time COMEX derivative silver trader, is tweeting mega bull shoutouts on silver ahead.

Have a read on some of his latest thoughts. First, about not pitting against one another over silly bullion vs. crypto arguments while flashing the mega long-term silver chart cup and handle that is building.

Also, he states that a $48 oz silver "moon shot" is on his silver point-and-figure chart.

Transitioning now to a story we jumped on top of right before we began this SD Bullion YouTube channel.

The NY Federal Reserve's REPO loan fiasco from September 2019, some of the loan data from that month just came to light thanks to the great work by pam and Russ Martens over at WallStreetOnParade.com.

And while it does not surprise the megabank and fiat financialized institutional names involved in the overnight lending fiasco that has escalated since. 

What is surprising is the size and scale it has mushroomed into since September 2019.

This week also, Reuters had an exclusive on how supposed western gold silver derivative price discovery transparency continues failing.

Pause here for a moment and a warning. It’s funny how the respective seemingly lawless City of London-based custodians for the world's largest silver ETF SLV (JPMorgan) and the world's largest gold ETF GLD (HSBC) shunned bringing potential transparency to opaque silver and gold derivative markets they often dominate via outsized concentration. Not in their interests?

Suppose you own either SLV or GLD for the medium or long haul. Go read their respective +50 page prospectuses, know with a share in either of those two derivatives you legally own no bullion and learn what the legal term "unsecured creditor" means for when and if things go wrong with either trust. 

Back to finish reading you all this article in our video embedded above.

That is all for this week's SD Bullion market update.

Here's hoping you out there have taken advantage of recent price weakness to build a prudent bullion position, as we are possibly heading to a bullish close for this year 2021 and onwards into 2022. 

As always to you out there, take great care of yourselves and those you love.

”America Would Default for the First Time in History”

In this week’s market update, James Anderson, reporting for SD Bullion, addresses Treasury Secretary Janet Yellen’s speech to lawmakers last week. According to the Secretary, if Congress fails to raise the federal debt ceiling by October 18th, the country is likely to fail to fulfill its financial obligations and the country would fall into an economic recession. As we see Mrs. Yellen calls for a bipartisan agreement, James has some spot-on follow-up questions.

As James analyzes the historical and current economic scenario of US dollar monetary base totals or fiat M0123 aggregate piles, he aims at targeting a conservative long-term forecast for gold and silver bullion in these coming years and decades unfolding.

He starts by pointing out the Executive Fiat Decree 6102, the one that ordered the confiscation of gold from 1933 to 1934 and basically resulted in the country defaulting on its own citizenry. Americans would only be able to legally own more than three troy ounces of gold privately over forty years later, in 1975. By then, the fiat denominated price of gold had more than five-folded. A luxury the U.S. citizens were not allowed to take part in.

During her public speech, Mrs. Yellen also claims this could be the first time ever the role and safety of the U.S. Dollar, the fiat Federal reserve note, is called into question. Well, that might not really be true. James recalls how in 1988, as gold prices escalated, the country could have gone back to the gold standard. Decades later, all-time record debt levels continue to be an issue. 

Mrs. Yellen goes on to state that the U.S. Dollar is the safe-haven asset during economic downturns. At this point, James calls on the Financial Crisis Protection Pyramid by former Federal Reserve Governor John Exter which clearly defines gold bullion as the safest asset. That is precisely why central banks in China, Russia, and the E.U. own huge amounts of gold bullion.

Global Payment System Settlement Freeze a High Likelihood

If you have also been monitoring trends in the global business and financial world, you likely know this is coming.

And if you have perhaps also bothered to study how old and analog our current global system of payment settlements is, this week’s concern should be on the top of your mind. For us here at SD Bullion, it certainly is.

This week we begin by listening to bond trading billionaire Scott Minerd, the Chief Investment Officer of Guggenheim Funds (the same hundreds of billions family fortune launched from the California Gold Rush refining physical gold and silver during the fiat GreenBack gold mania era).

We've highlighted Scott Minerd’s silver bullion bullishness on this SD Bullion channel in years past. You can see more on that here.

Before we end this week's SD Bullion market update, we're going to remind you just how financially connected Scott Minerd is. What he has said on record is the transitional endgame phase for the global payments system. As well, we'll listen again to his take on silver's eventual parabolic rise potential to come. Mr. Minerd also states that the 10 yr US Treasury will probably go negative before this 40 yr bond bull market ends.

Before we begin this update in earnest, a few thought-provoking questions related to this topic of payment settlement system freezing up.

How will our vulnerable Global Payment System react to large-scale coordinated hacks, attacks, and or significant Natural disasters like solar flares that can potentially blow out nearly everything digital and electronic it possibly blows through here on Earth?

More questions to ponder are below.

In the tweet embedded below is the Bank for International Settlements Money Flower illustration. 

It illustrates that all currency derivatives flowered from their precious metal monetary legacies and foundations. The government partnered central banks still hold over one in five ounces of gold ever mined because they know their fiat financial folly history. It is their insurance policy if and when currency derivatives fail again.

How prepared are you if the financial system were to seize up for months in duration?

In a complete financial system freeze or failure, having physical bullion and cash should be handy in getting necessities. Always having a few months of physical cash notes hidden away to cover monthly household expenses makes common sense, given the inherently leveraged risks we're all facing. Small-denomination silver and gold bullion products can also be handy for getting immediate liquidity in a pinch.  

In the race for digital control grid cartels, our shortsighted financial leaders want us helpless in transacting if and when in the future the electronic grids fail and or get hacked for long durations of time. 

Why else would the Bank of International Settlement's Agustin Carsten's be saying things like ABSOLUTE CONTROL when referring to the fiat Central Bank Digital Currency or CBDC payment grid that he and a hundred plus central banks are working on right now?!

Here he was back in late 2020:

And right on cue, The Daily Mail reported today about how the new USA’s Comptroller of the Currency thinks it is time the fiat Fed ends banking as we once knew it.

Have we noticed the trend yet?

Less control and privacy over our savings is what they want. And other than bullion, they're probably going to get it this decade into the next.

Silver and gold had volatile weeks, with the general last half-year trend still down.

The gold-silver ratio tightened to close this week, but it still looks technically like it wants to spike towards 85 before we make the next significant move downwards.

The Wall Street Silver crew continues updating on Twitter, how massive the NY Fed's Repo Loans are growing, hitting a daily record of over $1.6 trillion in one day this week. 

Congrats to them for reaching 150,000 silverbacks in their Reddit community.

As promised to close this week's SD Bullion market video update, we revisit what this former NY Federal Reserve Investment Advisor Committee Member has told us about silver and where the world is headed by 2020.

We start in early 2020, and then we go back to 2011, the last time the US debt ceiling debacle got the US debt downgraded by Moody's and other rating agencies.

That is all for this week’s SD Bullion market update.

As always to you out there, take great care of yourselves and those you love.

1.3 Billion Ounces of Silver Will Be Required This Decade

This week, Wall Street Silver ‘queen’, Kristina Partsinevelos was back on CNBC covering tough times of late for silver prices.

If you watched the end of our SD Bullion market update from last week, you would know that the Biden administration has their sights set on a massive US energy grid solar panel buildout, which would acutely spur silver solar panel demand in the USA through this decade the 2020s.

Bloomberg New Energy Finance (BNEF) is a leading provider of strategic research on the supposed low-carbon energy transition unfolding.

They recently ran silver solar panel demand numbers on a global scale, and they claim over 1.3 billion ounces of silver will be required this decade.

For fun a few weeks ago, I asked about one thousand Twitter followers the following question.

Apparently, we either add a 0 to the current silver spot price, or governments can go source their silver solar panel needs from the minuscule global silver refining and silver mining industries.

It was a choppy sideways up then down week for silver and gold spot prices. This past week started with a three-day Chinese Mid-Autumn Festival holiday. More on that in a minute.

The gold spot price closed the week just above the $1,750 oz level price in full fiat Fed notes.

The silver spot price ends the week right around where it started, just over $22 fiat Fed notes per troy ounce spot.

The gold-silver ratio remains at 78.

Yesterday I got this silver price chart emailed to me by Lee Justo of Wall Street Silver, and it illustrated the critical price threshold that silver is currently at.

We are also at a similar critical threshold with the gold spot price. The $1.700 oz level is a key number to watch in the weeks upcoming for gold.

This footage was taken this week in China, during the three-day Chinese Mid-Autumn Festival holiday, high-grade gold jewelry buying was said to be strong.

Based on reported physical gold and silver import data, China is steadily buying bullion and high purity gold jewelry.

You can bet Sep 2021 will be a good number too with the recent spot price dip, we also have the early October Golden Week holiday season inventory buying coming up.

The World's workshop always has a steady silver bid for industrial silver usage, not even the now one and a half year pandemic slowed their silver demand as you can see here.

Physical Indian gold demand too... is reported strong of late. Not merely the Indian citizens are buying mass gold, but also the Central Bank of India is buying gold bullion at a record high clip.

Indians & Chinese are always opportunistic gold bullion buyers. They are backing up the truck to buy gold at a perceived price discount.

Perhaps we should consider following the example of our Chinese and Indian brothers and sisters on the other side of this world, and begin backing up the truck for these ongoing silver and gold spot price dips.

That is all for this week's SD Bullion market update. 

As always, take great care of yourselves, and those you love.

Will Evergrande Cause a Financial Collapse in China?

In this week’s SD Bullion Market Update, we examine chaos in alleged Chinese real estate Ponzi schemes coming undone and the incoherent nature of bearish silver and gold trading of late.

The world has never seen a nation with the size and scale of China grow so fast. 

Of course, years of ghost city scandals and malinvestment projects both built and blown up in short order to clear space for new projects is commonplace.

But now, some alleged real estate Ponzi schemes are starting to hit ordinary people's life savings, and tens of thousands want their money back.

Once the country's second-largest real estate developer, Chinese property development giant Evergrande, is drowning in debt and likely defaults on what it owes.

Some 1.5 million people have put deposits on new homes that have yet to be built.

Reportedly over 70,000 retail investors forked over vast sums of money, in some cases their entire life savings, after the country's second-largest, 'too big to fail' property developer wooed them with promises of 10%+ annual returns.

After accumulating an equivalent value of about $410 billion fiats Fed notes in liabilities, the company Evergrande - which became the country's largest high-yield dollar bond issuer (16% of all outstanding notes) - sparked protests across the country earlier this week after announcing they were forced to delay payments in their wealth management products.

Evergrande allegedly has more than 700 real estate projects across 223 Chinese cities - most of which lie in the country's less developed regions - and has committed to complete some 1.4 million properties by the end of June, according to The Straits Times. 

Beijing has yet to make an official statement on what actions will be taken as many unsecured investors, both domestic and foreign, are hoping for a full-on government bailout.

According to Wolf Richter of WolfStreet.com, "Property development has been a huge factor in China’s economic growth and supposed miracle story. It accounts for 28% of GDP. And much of it has been funded by debt, including fiat dollar-denominated debt, and much of it is now blowing up in their faces.

So will the collapse of overleveraged Chinese property developers cause a financial crisis in China and perhaps beyond?

It could. But some of the biggest losers are foreign investors that bought those bonds, and not Chinese banks, and for a financial crisis to happen, it would have to sink China’s banking system."

For now, according to Wolf Richter, it looks like China might be trying to force "a brutal deleveraging on the property sector to bring down risks and tamp down on rampant speculation and price increases. It looks like an effort to rebalance the economy away from property development.

It looks like investors are invited to eat the costs of this forced deleveraging, with the government perhaps teaching them a lesson, namely that they might not get bailed out and that the flood of liquidity into the property sector was misguided and needs to end.

And it looks like the government is willing to take the risks of spillover effects into the broader economy and credit markets. And if, in fact, the government refuses to bail out bondholders, and allows a large-scale bloodbath among investors, particularly foreign investors, to occur in order to deleverage the economy, that would be a sea change for investors in China."

In the coming weeks and months, we will likely see the Chinese financial authorities’ direction.

Again those 4 GSIB bank names (see page 3) we highlighted in this week’s video, as defined by the Bank for International Settlement Financial Stability Board. Those are the Chinese megabank names to stay focused on in terms of potential contagion going possibly beyond China’s borders.

Silver and gold spot prices have been trading like trash of late.

Maybe's now nearly time to buy high-grade gold jewelry instead of plowing all your family's wealth into some pie sky, ghost city malinvestment project https://t.co/i5AHidvp9R

— James Anderson (@jameshenryand) September 17, 2021

The gold spot price is likely to close this week around the $1,750 oz handle, and the silver spot price looks to finish the week just below $22.50 oz. Silver is teetering on the bottom of its last over one-year consolidation channel, lookout.

The gold-silver ratio has now climbed near 80, and it remains to be seen what kind of spot price attack shenanigans might get let loose this coming Sunday night in low-volume Asian trading to possibly get shorts out from under any potential paper losses they may still be staring at.

If you are still acquiring physical bullion and precious metals positions, keep your heads on a swivel and potential buying triggers engaged. 

Here is the gold spot price vs. the 200-day moving average throughout this whole fiat currency era now over fifty years running. Now we’ll zoom into the last five years so you can see the context of where we are versus recently been.

Here is the silver spot price vs. the 200-day moving average throughout this full fiat currency era now over five decades running. Again we’ll zoom into the last five years so you can see the context of where we are versus where we have somewhat recently been.

Anecdotal reports out of China are Chinese housewives have been buying the price dip and gold bullion import inflows were heavy this past week.

On the United States side of this current situation, Daniel Oliver of Myrmikan had this gold versus real negative interest rate chart to remind us of how misplaced things are in the financial markets at the moment.

Remember that when looking at current negative interest rates near negative five percent per annum, the US government is likely underreporting actual price inflation by a factor of times or so, meaning real inflation is expected to be running around 10% for most citizens. 

Back in the 1970s, the US government and Bureau of Labor Statistics were not in the full-time business of rigging price data regularly as they are increasingly now.

The case for the price of gold being multiples of where it is right now can be made based on past historical precedence repeating. But just let’s wait and see how much worse the inflation data gets in the coming yrs before we get entirely shocked by this perverted price discovery.

The reported balance sheet of the Federal Reserve is now at $8.5 trillion and counting. 

Remember what happened last time the Federal Reserve tried to taper its balance sheet while the Federal Funds Rate got moved up to near 2%?

That’s right, the stock market rolled over violently, and emergency phone calls on Christmas Eve 2018 were made to the plunge protection team and US-megabanks.

This financial system is still structurally sick as a cancer patient. The question of when confidence starts collapsing and investors start running for the tiny exits, that’s what we’re staying focused on here.

This week, the Institute for International Finance reminded the world of the crazy debt binge it’s been on, especially over the last handful of years.

Of course, many of these challenging debt levels are owed by corporates, households, and others denominated in fiat currencies. Most of these debtors do not have their very own legal tender printing presses. Newsflash: much of this debt is not going to get paid back in real term$.

Not accounted either in these totals are $100s of trillions not saved for unfunded liabilities that the west owes. For example, unfunded programs like social security, medicare, government pensions, and other mandatory government promise piles accrued in the USA alone.

How will the future defaults and currency debasements in absolute real value terms unfold?

Now to move this bullion market update back to silver from the start of September 2021. Long-time silver derivative trade Peter Brandt tweeted the asymmetric bet he was supposedly making to begin this month. The idea is that the silver spot would not see below $20 oz before running at $50 oz ahead. Well, that claim is now an honest question.

But let's look at some ridiculous fundamental drivers outside of record silver investment demand ongoing. For example, the Biden administration is about to propose a $3.5 trillion infrastructure bill. A large portion of promises is about a massive solar panel buildout for the US electric grid in the decades to come.

We now have outlandish claims from the Department of Energy stating that 40% of US electricity will come from solar panels by 2035. Imagine a solar panel a bit smaller than the state of Maine broken up and sprinkled about on rooftops and in unused sections and swaths of arid and non-US farmlands.

The US Department of Energy also has a Solar Futures Study, 310 pages long, and one riddled with many assumptions that will prove wrong. But the most salient part was likely on the report’s page 166, where they explicitly state, "silver demand from solar panels could reach almost 40% of 2020 global production in a global decarbonization scenario."

Ah, Earth to the Department of Energy. I don't know; maybe you haven't been paying attention thus far this decade. But the amounts of silver bullion and investment ETF demand ongoing and likely to come will be a real problem for silver supply levels at these paltry spot prices. London complained that they almost ran out of silver bullion inventories a mere handful of months ago.

You better come up with a higher spot price to induce the silver mining and refining required to meet the lofty figures you published in this report.

This report also talks of one-day undefined thrifting more expensive silver inputs for copper into this solar panel infrastructure grid build-out. Never mind that current copper solar panels don't perform as well nor last as long. And oh yea, silver laced solar panels only have about a three-decade lifespan, so hopefully, by the year 2050, we've invented cold fusion and free energy.

But the Department of Energy has a commingled figure of 2,572,056,000 oz silver / and later thrifted solar panel copper ounces that will supposedly go into this massive government energy program.

So the idea that the silver spot price will slip back and flounder into the teens for a long duration to come is pretty silly. The US government is talking about silver-laced solar panels combined with their seemingly infinite fiat monetary base ramping galore; silver should be set up for some of its best years to come.

That is all for this week's SD Bullion update.

Thanks for tuning in, and as always, take great care of yourselves and those you love.

US Mint Struggling to Source Raw Gold for Gold Eagle Production

In only the first eight months of 2021, the US Mint has already achieved record sales volumes for its gold bullion coin program (combined Gold Eagle Coin & Gold Buffalo Coin buying by the investing public).

Here are some insights about physical gold bullion bar market tightness potentially affecting the US Mint and its many potential suppliers. 

We are hearing some rumblings from now multiple mints/wholesalers that seem to be having a more difficult time finding base metal for product production delivered on a schedule that they can rely upon. The first phone call was a few days ago when we were tipped off that gold eagles were likely going to be delayed a week or two. They stated that it was because gold suppliers for the near term have been reluctant to agree to US Mint's supply contracts which include a delivery date guarantee. The delivery date guarantee is to ensure the gold arrives at the US Mint facility on a certain date so they can plan production. If they miss the delivery date deadline, the supplier is subject to huge fines. 

The supplier is saying it is too risky to take the chance in meeting the delivery date guaranteed US Mint production schedule. Suppliers we have spoken to have had logistics issues (aka gold not readily available in the normal places) in getting the gold to their facility. Therefore, it appears that multiple suppliers are taking the position they do not want to risk the fine if they are late delivering gold to the US Mint by a day or two given the delay we are now being advised on US Mint gold.

It is important to note, we are not aware of any material differences regarding US Mint delivery date guarantees. The supplier contract of supplying gold to the US Mint has always been strictly regulated and controlled. In other words, the decision by the supplier, in our opinion, is not based on anything the US Mint is doing differently. It would seem to indicate issues within the gold supply chain itself and the reliability that the gold supply currently incoming to the suppliers is more risky than normal.

Another phone call took place today where a mint said that, in their analysis, there is a lot of gold and silver out there. The cost of getting it to where it needs to be is a barrier and a logistical nightmare. Therefore, this seems to back our opinion that suppliers are having to go to 2nd and 3rd line sources to bring in base metals that are less reliable.

Furthermore, the traders had the following to say regarding the situation of the US Mint heading into the fall of 2021:

The US Mint is playing an elaborate game of "Chicken or the Egg" as it relates to selling Gold to their Authorized Purchaser network. Historically, the mint purchases raw Gold from any number of sources, which it then uses to produce Eagles, Buffaloes, etc. Each raw Gold purchase comes with a set standard of terms of delivery (which have not changed) that binds the seller to specific terms, and failure of the seller to meet those terms they've agreed to with the US Mint is very costly. 

The Mint is now quoting unexpected delays on their products, notably pointing to the lack of supply of the raw Gold being offered to them. Considering the suppliers of the raw Gold are often the same parties buying the finished product, it's an odd phenomenon where each party is in some sense biting the hand that feeds them. The only reason for this development is that it's too costly for suppliers to agree to a delivery schedule to the mint, as the supply of raw Gold itself is not as reliable as it always has been.

That’s all for this brief SD Bullion update.

As always take great care of yourselves and those you love.

What is This Billionaire‘s 2021 Gold Bet?

John Paulson, a multi-fiat Fed note billionaire Wall Street trading legend, was interviewed on August 12th, 2021, and Bloomberg Wealth published these video clips this past week. 

This famed, often highly leveraged derivative, a trader who helped his firm and investors net over $20 billion on a trade shorting the 2007/2008 housing market credit bust, had additional sharp insights on the parabolic future price climb for gold.

The close to this week's silver and gold derivative trading hours ended on a positive note for bullion bulls. A massive near 500,000 jobs bolstered both respective silver spot price and gold spot prices in August 2021.

The gold-silver ratio also fell firmly on the news, showing signs that derivative traders were seeking alpha by placing down additional silver derivative long bets. 

Sideways spot price consolidations can wear people's excitement and patience out. But this last year to time for silver bulls like myself and the extended base we have been building signals tremendous upside energy likely ahead.

And with fiat creationist cartels en route to doubling their ballooning balance sheets within the last two years, well, a reckoning in store of value confidence is what I continue actively betting on and saving against.

This week we have some exciting news from various important gold stacking and even increasing commodity-price-discovering nations on the other side of the world.

We'll begin with news out of China.

Note the mentioning of shipping futures contracts and the massive escalating price squeeze ongoing for goods from China to the USA since the pandemic. 

Much of these shipping price escalations have and will likely continue to be passed off to consumers with higher prices for goods coming out of China.

Also, China is still the world's largest consumer of commodities, and it's not close in terms of the second-largest market buying most things critical for a quality modern lifestyle. 

Pretty easy to guess that China wants to wrestle much commodity price discovery influence away from futures markets like the US-based COMEX and NYMEX to have her longer-term agenda more easily appeased. 

Of course, Russia likely knows well the International Monetary Fund's Special Drawing Rights history.

The SDR began in 1968 as a supposed gold-backed freely convertible supra-central banknote only to morph into year another complete fiat currency contrivance.

The SDR fiat currency unit inputs basket has lost over 97% of its value to gold bullion. And the Russian Federation likely agrees that the SDR devaluation vs. bullion trend is not changing anytime soon.

Gold market analysts Daniel March and Krishan Gopaul were quick to cite massive gold demand out of India for this past month of August 2021. 

Remember how last week we mentioned Germany had almost imported 100 metric tonnes of gold in the first half of 2021?

Well, India did that and more in August alone. India’s most significant gold bullion buying nation f India is getting back on track, and it appears she is well open to importing 1,000 metric tonnes for the year. 

This week Market Watch had an exciting story citing estimates that an additional 20% of undocumented smuggled gold moves into India annually — stashed inside wigs, jeans, shoes, and other body cavity regions.

The reason for this at a large scale is the arbitrage of possibly avoiding the 7.5% duty and tax slapped onto both gold and silver bullion bar imports into India. A country that is preparing to launch trial programs for its fiat CBDC rupee late this year 2021.

The Indian banking system is notorious for being insolvent and not writing down bad loans and debts, so moving to a fiat CBDC grid and killing cash is likely a high priority for the financial powers. 

Finally, to close, I will leave a link to an interview I did yesterday with Tom from Palisades Radio.

https://youtu.be/QHKOirpEkqc

 

In the interview, I go over a bit of what I am about to tell you. My recent less than 24 hours one day trip through Istanbul, Turkey, was eye-opening. The ancient and largest city on the European continent, with portions of it extending on the continent of Asia as well. About 16 million people live there at the moment. 

And the majority of the people living there are suffering under severe currency devaluation and ongoing price inflation.

Historically and currently, this part of the world has a massive gold trade, not merely in annual demand for high-grade gold jewelry manufacturing but also its growing gold refining capacities. 

Increasingly too, as the Turkish lira continues devaluing, their demand for silver continually grows, as likely the poor man's gold is deemed a better value and with a reasonable price range. 

In mid-2208, the Turkish lira was almost at par with the fiat Federal Reserve note, and now it takes over eight fiat lira to get one US dollar. So I went there with the express intention to buy some high-grade gold jewelry gifts in their world-famous Grand Bazaar. The trouble was they had a national holiday on August 30th, so I will have to return happily.

Here's the point, I didn't get my high-grade gold jewelry gifts, but what I did get was some perspective of how lucky I am.

That day I got to meet and sit with a young, charismatic Syrian refugee for a 15-minute tea, and we quickly got to the point where he mentioned how terrible his job was. He complained of having to work 12 hour days with no breaks and how his pay was demolished by ongoing lira price inflation. Never mind the fact that his home country was recently ravished by war. 

I bet if you asked a lot of these people here, they would tell you similar or even possibly worse stories.

You see, most of watching this video have been lucky, including me: Count, our blessings,

That is all for this week's SD Bullion market update.

As always, take great care of yourselves and those you love.