SD Bullion

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.

GOLD PRICE in Top 20 Fiat Currencies Around the World

The next era of new record gold prices in many of the largest fiat currencies and fiat FX trades is not far away. Hear and see for yourself.

Price charts & accompanying video content can be seen for free at: https://www.youtube.com/c/sdbullion

Black Swan Bullion & Multipolar Changes Continue

It has been a mixed week for the respective silver spot price moving down slightly and the gold spot price testing but failing to clear $1800 oz. Thus the gold-silver ratio keeps climbing, likely closing at 77.

We also witnessed many ugly images and video clips came out of Afghanistan; Chinese state-owned media were quick to jump on the opportunity to warn its neighboring island, Taiwan.

Essentially pointing out in a widely circulating editorial from Chinese state media that once a war breaks out in the Chinese Straights, Taiwan's defenses will collapse in hours, and US Military will not come to its aid. 

Citing that if it decides to interfere with China's likely future Taiwan takeover, the United States would have to have a much greater determination for a fight over Taiwan than it had in Afghanistan, Syria, and or Vietnam.

Also, yesterday, a poorly translated article was published regarding the China Gold Association stating a large number of Chinese gold reserves proven in their ground as of the end of 2020. The race between which nations have the most gold in the ground yet to be mined is between China, Russia, and Australia in the decades ahead. 

What has not changed is the understated Official Gold Reserves of the Chinese state at the moment, still standing just below 2,000 metric tonnes.

Judging by physical gold bullion flows and mining production over the last four decades, increasing since the 2008 global financial crisis. It is fathomable that between the Chinese military and her large sovereign gold bank vault system, China could quite possibly add a zero to their official gold bullion reserves at any time in the future of her choosing. 

Regardless of where her gold reserves stand, the likely issue China will continue to have to battle will be the world's collective faith in her word. The size of interest in China's currently near fully closed capital accounts, if and when they might somehow open, and how that might come about for the world at large.

Swinging this opening back to official gold reserves already mined and owned by sovereign nations, but ones not sitting at home onshore but rather offshore for the nation of Afghanistan. The official Afghan gold reserves are still sitting with the New York Federal Reserve and have been there since 1939. There the nation has over 703 million ounces in the basement of the NY Fed building. But to surprise, the US Treasury and OFAC just froze known Afghan financial accounts in the hope of blocking Taliban leaders from accessing billions in Afghanistan's foreign coffers.

Turning attention to our neighbors north of our North American border up in Canada. The following comment by the current prime minister of Canada running in a snap election should be worrisome for anyone seeking future financial restraint if he wins. 

Next, we turn to JP Morgan Chase's rampant criminality in financial markets.

In a bit of bad news, good news regarding the seemingly lawless financial and commodity market price discovery for the last decade-plus. 

The good news is an Illinois judge ruled this last week that four former JPMorgan precious metal traders will stand trial beginning on October 19th, 2021. One of these former traders is Michael Nowak, the once co-managing director of the megabank's precious metals derivative trading desk.

The trial will cover years of alleged criminality, beginning when JPMorgan inherited Bear Sterns's naked silver short bankrupt desk in early 2008, all the way into the year 2016.

What will not be up for trial is the bank JP Morgan Chase itself, nor the trader's executive superiors who likely also heavily benefited from ill-gotten gains made from tens of thousands of spoofing and slammings of spot prices in precious metals for nearly a decade running.

Now left to hang potentially, these former traders will face criminal racketeering, market manipulation, spoofing, conspiracy, commodities, and bank wire fraud. 

It will be interesting to see what more financial market onlookers might learn as this trial gets underway later this year.

And finally, to close this week's SD Bullion market update. 

Palantir Technologies, a public American software company, specializing in big data analytics, has purchased $50.7 million in 100 oz gold bars to hedge against potential black swan events.

Headquartered in Denver, Colorado. And co-founded by tech billionaire Peter Thiel.

Company customers include the

• the U.S. Army
• the U.S. Navy
• the CIA
• IBM
• Amazon

Its intelligence software is used in 150 countries, and its customers can now pay for services in physical gold bullion. 

Which leads one to wonder, what kind of potential black swan is their data possibly purveying?

And will a trend of publicly traded companies, organizations, and other institutions buying bullion as payment hedges begin to become more widespread? Or will most be caught owning no bullion or physical monetary metals in case of a failure of the internet and/or power grids, prolongs for weeks or even months at some point in our future.

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.

50 Years of Fiat Fed Note Foolery

A golden anniversary is often the 50th joyous celebration of a marriage where two loves who have spent a lifetime together, mark the occasion with family, friends, and loved ones.

Well, we're about to do almost the exact opposite of that.

Not merely with our own experience and opinion, but also data and many of the damning charts we will show you on this free video uploaded to the SD Bullion youtube channel.

Audio sourced from https://www.youtube.com/c/sdbullion

Silver & Gold Smashog Day?

The silver spot price and gold spot price got smashed in the derivative markets again this past week.

If like me, you have been in the precious metals market long enough, perhaps you, too beginning, are beginning to feel like Phil Connors in the 1993 American fantasy comedy film Groundhog Day.

Gallows humor and derivative price discovery propaganda aside, for those of you who know that this kind of rampant fiat currency creation ultimately blows physical precious metal values higher. Now is a great moment to add to prudent bullion and precious metals positions.

This past week, on this same SD Bullion channel, I published a video looking back a the last dozen years of intraday silver price trading action on a year-by-year basis. An attempt to find the typical times during the day in which short precious metals derivative traders have their generally most considerable downside effects on ongoing spot prices for silver and gold. This week's downside price smashed on the morning hours, was like clockwork.

If you missed that video, here is the link: https://www.youtube.com/watch?v=SCnlc0LaNj4.

It will be essential to see how trading goes this coming Sunday evening into early next week.

Will the precious metals rebound, or will there be further short-term downsides to come?

Not only is silver at a critical support level, so too is gold, platinum, and how much higher may the gold-silver ratio climb in the coming weeks?

In some positive, there appears still to be a shred to the rule of law remaining. This past week a jury convicted Two Former Wall Street Bank Traders of Wire Fraud.

That is all for this week, as always to you out there. Take great care of yourselves and those you love.

Silver Price $226.86 oz Outside COMEX Hours 1970-2021

I know it sounds ridiculous.

As if I added an extra "$200" per troy ounce to the silver spot price in this article's headline.

But that is the current damning East vs. West silver "price discovery" data aggregated over the last +50 years.

Here is a quick background on how "polite" western silver and gold price suppression is.

I would argue it's more ridiculous to publically say that daily and weekly spoofing of the precious metals price discovery markets to the downside tens of thousands of times over a decade doesn't damage the price of an item, over time, compounding to the downside. 

So here we continue to await the coming silver bullion shortage, front running, and likely coming gold bullion shortage (of available quickly deliverable bullion, in real size, at reasonable prices versus spot).

A bit of bad news, good news to start this week’s SD Bullion market update.

Most often miscalled a US dollar, the fiat Federal Reserve note continues devaluing in real purchasing power at rates not seen in nearly 40 years.

The good news is, silver and gold continue being mispriced discovered by outsized derivative and fiat financialized markets that act as having little to no clue on the capital flow comeuppance to come.

In other words, investors can still get physical precious metals positions at comparatively low historical valuations to other asset classes propped and stubbornly still hovering in bubble status.

Prices reportedly increased near 1% from May to June 2021, signifying double-digit inflation using the government’s hedonic quality rigged, underreported inflation figures.

CNBC Pumping Silver Squeeze Segments:
--- https://t.co/FggqKtECQv ---
US Inflation now worse than South Africa

re: #Silver $Silver #Bullion $PSLV >>> $SLV $SIVR#SilverSqueeze https://t.co/iBqOU8fExg pic.twitter.com/Mpl5vCubV8

— James Anderson ▂▃▅ #SilverSqueeze (@jameshenryand) July 13, 2021

The following clip is courtesy of this week’s PBS Frontline documentary on the outsized power the private US central bank has over average citizens' lives at the moment. 

Here is one of its most apologetic Fed employees, Need Kashkari, shirking responsibility for the supposed regulatory mandates the Federal Reserve is mandated to fulfill.

FULL supposed critical FEDERAL RESERVE
PBS FRONTLINE doc link below

Kash Carry stars as just another
self-interested fake regulator fraudster in motion
He plays it perfectly, taking 0% responsibility for their folly leveraging further

Yet another Financial Crisis is inevitable https://t.co/d8cveT7kDW pic.twitter.com/JUq96V1gds

— James Anderson ▂▃▅ #SilverSqueeze (@jameshenryand) July 15, 2021

Pam and Russ Martens of WallStreetOnParade.com point out that over the last 15 and one-half years, the Federal Reserve has approved 3,576 bank mergers. It has denied not one proposed bank merger in the last more than a decade and one half of time.

They go on in this Federal Reserve failure to regulate article. Stating that, the: 

"decline in the number of overall banks fails to capture the gargantuan concentration of assets at just four banking behemoths: JPMorgan Chase, Bank of America, Wells Fargo, and Citibank. According to the March 31, 2021 report from the Federal Reserve, just four banks own $9 trillion in assets of the total $22.56 trillion in assets owned by all 4,978 federally-insured banks and savings associations in the country.

To put it more poignantly, those four banks represent just 0.08 percent of all the banks in the country while controlling 40 percent of the assets."

And now the fiat Federal Reserve is pushing for a new fiat Central Bank Digital Currency unit, often called FedCoin, which will likely result in even more bank concentration once it begins being issued likely later this decade.

BIS' Agustín Carstens is a great #Bullion salesman

Here is he was talking about Central Bank Digital Currency #CBDC and #CrossBorderPayments killing cash, giving gov't central banks near-total control
--https://t.co/40TQWO37Yd https://t.co/FYrpZZmSTq pic.twitter.com/EhNzYdBSf2

— James Anderson ▂▃▅ #SilverSqueeze (@jameshenryand) October 30, 2020

To end this week's SD Bullion update on brighter news and trends building.

The central bank of Brazil continued the trend of the emerging market country's going long gold bullion reserves adding 41.8 metric tonnes to its Official Gold Reserves in June 2021. 

To put that gold bullion buying into perspective, that is akin to buying 3,600 of these 400 oz gold bars you see here.

In terms of the largest net monthly gold bullion reserve buying, six to seven of the largest ten gold bullion buys have happened in the last few years. This trend is unlikely to slow, in other words.

1 yr base for higher $Silver prices being built... https://t.co/IwPxNDWvE2 pic.twitter.com/hbIi1OUYdb

— James Anderson ▂▃▅ #SilverSqueeze (@jameshenryand) July 14, 2021

Turning to the base that the spot silver price has been building over the last near one year of time, my belief is it will ultimately be resolved in the medium and longer-term, strongly to the upside.

I say this confidently, knowing that silver's aggregated eastern trading price is still hovering around $226 fiat Federal Reserve notes or fiat US dollars per troy ounce.

Go back to the start of this article, and see the first embedded tweet, to see this east vs. west silver price discovery chart in both a non-logarithmic and logarithmic scale.

I contend that the RED silver spot price will again meet the BLUE eastern aggregated spot price from 2006-2008 and in early 2011.