Continued Financial Market Deterioration Impacts Gold Eagle Sales In A Big Way

The financial system is sitting on the edge of a cliff and an increasing number of investors are beginning to realize it.  I hear more and more evidence from contacts in the financial and precious metal industry that the U.S. banking industry and Dollar are in serious trouble.

While some of individuals believe that the Fed and U.S. Government will continue rigging the markets for the next decade or more, I believe we will witness a financial dislocation or black swan event within the next year.

As I have stated in several interviews, I sold my business and left the big city and moved to the country back in the beginning of 2007.   I knew the mortgage industry and economy were going to collapse.  What I didn’t know was the degree to which the Fed and Central banks could prop up the market.

NOTE:  If you haven’t checked out our new PRECIOUS METALS INVESTING PAGE, please do.

It has been eight years now and the silver bullets have run out.  While the Fed and Central Banks will continue to rig the markets as best they can, the amount of debt overhanging the market has become unsustainable.  As Central banks push interest rates negative, it just motivates more investors to get into gold and silver.

Last week there were several emergency Fed meetings followed by China’s launching of its new gold yuan benchmark this Tuesday.   Also, according to Global Research News:

China has reportedly decided ”there can be no conversion of gold-backed Yuan to or from US dollars.”  What China fears is that many countries around the world will want to trade their reserve US dollars  for the new Yuan, leaving China with mountains of worthless US dollars.  China already has several trillion in US dollar reserves and does not want or need more.

If the news reports that China will not allow a conversion of its new gold-backed Yuan to or from U.S. Dollars, this is indeed serious trouble for the United States Empire.  Which is the very reason I believe there were emergency Fed meetings last week.  Even though there hasn’t been any major impact via the mainstream media, the ramifications are likely to become public in due time.

Gold Eagle Sales Surge 3 Times Higher In April

The telltale sign that something isn’t right in the financial industry is a surge in Gold Eagle sales.  Last year, total Gold Eagle sales for April equaled 29,500 oz.  However, in just the first three weeks of April this year, Gold Eagle sales have reached 87,500.  This is three times last years figures and we still have another week remaining in the month:

Gold-Eagle-Sales-April-2015-vs-2016

We can see in the chart above, the weekly sales in the second (33,000 oz) and third week (34,000 oz) of April surpassed the total for the month last year.  Furthermore, April’s sales so far of 87,500 oz are nearly two-and-a-half times the 38,000 oz sold last month.

Now, if we compare total Gold Eagle sales for 2016 versus the same period last year, we have the following result:

Gold-Eagle-Sales-JAN-APR-2015-vs-2016

The U.S. Mint’s Gold Eagle (JAN-APR) sales are 90% higher at 333,000 oz compared to the same period last year of 175,500 oz.  If demand for Gold Eagles continues to remain strong for the remainder of the year, we could see total sales exceed 1 million oz.  This figure hasn’t been seen since 2011 when total Gold Eagle sales reached 1 million oz.

Here are the following annual Gold Eagle Sales totals (troy oz):

2007 = 198,500

2008 = 865,500

2009 = 1,435,000

2010 = 1,220,500

2011 = 1,000,000

2012 = 753,000

2013 = 856,500

2014 =524,500

2015 = 801,500

2016 Ytd = 333,000

With the Chinese recent launch of their new gold-backed Yuan, the days of U.S. Dollar hegemony are numbered.  When the world starts dumping U.S. Treasuries and Dollars, investors better make sure they have already own physical gold and silver.

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26 Comments on "Continued Financial Market Deterioration Impacts Gold Eagle Sales In A Big Way"

  1. lol Dang…outta beer if the Silver Bullets have run out!

  2. I understand the 10 or so buyers in the Shanghai Gold Exchange MUST sign agreements to ONLY trade in Chinese Currency. I think this is different than a true “gold backed” currency, which I don’t see any news on yet. IF China does back it’s currency with gold, or silver, I would think spot price would rise sharply..
    With no futures, and, real time sales, the Chinese may put heavy pressure on both London….and Comex…I think the Chinese want to have the lowest price, and, more liquidity, and, more respect for their currency, which is in the so-called international basket now.
    Whatever happens, yes, some positive spikes in spot gold may happen while we sleep, and be very swift, which is why I am long gold mining stocks, silver stocks and physical.

  3. Shouldn’t it be Yuan denominated gold contract? “With the Chinese recent launch of their new gold-backed Yuan” As the Yuan still ‘floats’ against gold, not a unit of weight per Yuan. There is a big difference. The Yuan is still fiat.

    • at a moments notice, though, the Sino govt can now switch their ‘peg’ from the $US to the supply/demand tape of SGE
      One wonders whether Saudi Arabia are just using ‘9/11’ as a cover . If you have a Saudi/Russia/China energy+gold triangle, Americ is out in the cold, for real

  4. I found this on the gold exchange rules:
    The Shanghai Gold Exchange’s new Chinese gold pricing benchmark – set to launch on April 19 – will aim to attract the interest of foreign participants by allowing foreign price-setting companies and their clients to trade the contract.

    And foreign banks’ clients will be able to keep their trading activities anonymous – much like the London benchmark – while domestic companies do not appear to enjoy the same privilege, with each having a client code that will be displayed on the system.

    Still, the system will differ from the current London benchmark run by Intercontinental Exchange (ICE), according to proposed specifications seen by FastMarkets.

    Price-setting members (or core members) – of which the Shanghai Gold Exchange’s draft specifications say there are 14, although well-informed sources say there will be 16 – will have five minutes prior to the twice-daily auctions to create the initial price for the first auction.

    According to the specifications, the members will be able to input a price per gram for the ‘SHAU’ auction between 10:09-10:14 and 14:24-14:29 local time, after which an arithmetic average that removes the highest and lowest prices will create the initial price for the first auction round or ’round A’ set to start at 10:15 and 14:30 respectively.

    For example, should member one input 242 yuan per gram, member two 243 yuan, member three 242.85 yuan, member four 242 yuan and member five 241.00 yuan, the first price to enter auction A at 10:15 would be 242.28 yuan.

    In comparison, in London, the initial and any subsequent round prices are selected by an independent chair – who is anonymous – “using their extensive market experience”, according to ICE, and is applied based on an agreed pricing framework.

    After that, the participating members – of which there are 181 – of the Shanghai Gold Exchange will have 60 seconds to buy and sell at the theoretical price, with an extra 10 seconds added at the end for the core 14-16 market makers to narrow the tolerance level.

    Should the net buy-and-sell volume exceed 400 kilograms, the price will not be set and the new price will be input into the auction for the next round.

    From the second round onwards – or ‘Round B’ – the time limit will drop to 30 seconds per round. This compares with London where every round, including the first, lasts for 30 seconds.

    Should the volume difference be between 400 and 2,000 kg, the new price will be 0.2 yuan higher or lower depending on which side the tolerance level was exceeded, 0.3 yuan if the volume difference is between 2,000 and 30,000 kg and 0.4 yuan if it exceeds 30,000 kg. In London, the tolerance level is set at 10,000 ounces.

    During the ‘supplementary’ 10 seconds at the end of each round, the ‘core’ members will not be able to reverse the direction of the buy-and-sell volume; instead, the draft rules suggest that the member will be looking to narrow the imbalance as much as possible.

    If the price is set, as with the London benchmark, the intolerance will be shared out but only with the core market makers.

    (Additional reporting by Meimei Qin,

    – See more at: http://www.bulliondesk.com/gold-news/newsbreak-new-chinese-gold-benchmark-auction-to-differ-from-london-system-110661/#sthash.mX7v8qmM.dpuf

  5. RallyPessimist | April 22, 2016 at 10:13 am | Reply

    I am a firm believer all the gold/silver bug’s arguments on why the prices of the precious metals should be much higher. 100%!!!

    I see all the Black Swan risks out there, as baffling as they are, and more black swans exist as time goes on.

    But for so many years, the PM paper prices have been manipulated, preventing the true price discovery of silver and gold, whether paper of physical.

    So, I have a hard time believing that his “silver rally” is for real. I want to believe in it, I want prices to rocket higher, but the last time prices shot up, they just plummeted down. Sure, there are settlements going on for price manipulation of silver, but the settlement amounts are paltry to the true economic destruction they have caused on so many fronts.

    I want this time to be different, but I believe the FED and other central banks would suffer with higher PM prices, so what makes people believe this “rally” or “bottom” is the real thing, and won’t be squashed again?

    • “I want this time to be different, but I believe the FED and other central banks would suffer with higher PM prices, so what makes people believe this “rally” or “bottom” is the real thing, and won’t be squashed again?

      You can bet they will try to squash it again. It isn’t working well but they have to try. The commercials who are short have to keep prices down to avoid big losses on their positions.

    • Rally:
      You are right not to place any faith in this silver ‘rally’ priced as it is on the comex. Do not look or ask for a rise in silver on comex. Look to Shanghai, and when its price starts to diverge from lbma/comex.
      The west now has 2 choices – keep suppressing western gold/silver – and watch as arbitrage traders take it all away and sell it to china for the premium – or else the west will have to follow shanghai’s lead higher
      Make arrangements so that you can find buyers who take their cues from Shanghai – dont wait for ‘if’ the comex follows suit – it may never.
      Thats the lesson here. Dont presume the west will start behaving more transparently, just take your stores of value to the Eastern market.
      The only way our oligarchs will stop the shell game is if they are about to lose their own shirts in maintaining it. This means we, as the little people of the West, might need to inconvenience ourselves a little in our business activities.

      • Wow, i never thought of it that way. If the new China pricing system sets a higher price the western hegemony will with out a doubt start selling to the China market at the higher prices. Most of the western banks owners are multinationals and have no commitment to a sovereign country so they will even if sneaky at first sell to the eastern markets to make the proffit. China knows America cant control the Jewish banks especially when you hold money in front of their facses. Its all about greed, power and control. The US only has one option in my opinion and that would be to drop the Federal Reserve Notes in favor of Congressional Treasurey Notes to compete with China. The new Gold Yuan is not extorted like the Federal Reserve notes so with the intrest we owe plus the intrest / extortion we pay just to use Private Zionist Terrorist Federal Reserve Banking Cartels Fiat Worthless Paper its just a matter of time before China is the world’s reserve currency. It could take 10 years but it will happen. If we get someone with currage to implement the new Treasury Notes we could retaine our lead and free the nation and individuals to become prosperous like never before. The US has been assisting the Federal Reserve to impliment more arms of the Federal Reserve Bank all over the world as has been for 50 or more years by murdering leaders, over throwing leaders, and by lending huge sums of money with redicules small print to indebt other nations. Read “Confessions Of An Economic Hitman”. China is a much more powerful foe then the US admits. Unless we get a Trump type person and the people of the US start joining together to demand change very very soon then its over and a lot of Americas will die from black violence. Its all going to erupt in the cities. I live in the city of Saint Louis and i can already feel the tension. We are dead if it blows up while we are still here.
        I own a silver / gold store check it out.
        Stores.ebay.com/phantomsilversmith
        My new custom silver & gold money clip site
        phantomsilversmith.com
        From there you can link to my ebay and etsy stores. Im adding three new sizes of gold money clips in one week.

  6. Steve,

    The Yuan is not yet backed by gold. The new exchange is making a market priced in Yuan.

    This might very well backfire on the Chinese. The Yuan is overvalued. This is one of the main, albeit unstated reasons, that FED FOMC has not raised the the interest rates in spite of what they claim is a “good recovery”.

    If they were to raise rates, it would severely impact the mountain of Chinese debt, force a rapid devaluation of the Yuan and, in response, they would dump $3Trillion in US Treasuries on the market in an attempt to prop up the Yuan. This could well be the final straw so both sides are in a Mexican stand off.

    Both governments are exploring going back to a backed currency as a final contingency.

    The Chinese rightly believe if there is a spot market in Yuan it will be isolated from the western bank’s manipulations and they will have more control. The downside is they are still buried under a mountain of debt, much of which is in US dollars.

    No winners here except the holders of physical gold and silver.

    SteveW

    • Good points. Imo, gold is the nuclear option in the current cold currency war. When the war becomes hot, decisions will have to be made.

      • Picture says it all.

        Reversion to a gold standard is the nuclear option in the “current cold currency war” and clearly one that China, US and even Russia are holding as an ace in the hole for when the fiat currency merry-go-round stops. My question is; What are the Canadians thinking? If I remember correctly they are down to 77 ounces of gold. What do they know or think they know?

        SteveW

        • Could be anything. Maybe they sold a paper promise and the Canadian gold was added to the JPM Comex vault, but still stored in Canada. It’s all fucked up, how about some tar sand money swap from the FED in exchange for another gold scam?

        • A gold standard will lead to the immediate explostion of capitalism worldwide no return possible so that will NEVER happen. The only think the BRICS can do is to put a gold cover clause for their central banks balance sheet : for example 20 times more fiat issued by the central banks than gold value held at their balance sheet.
          if they do that, at the first crisis (within a few years), the ratio will increase to 25, and 50 and 100 and infinity like QE !

          • RD,

            Anything but a true and absolute precious metals backed standard will not work. When fiat collapses, not third world countries that have the rest of the world to lean on, but the pound, dollar, euro and the yuan, the one and only thing that will allow the world markets to start functioning again will be backed currencies. The currencies will be warehouse receipts for some numbers of grams of a precious metal.

            It is my belief that an ounce will be standardized at 30 grams. The Chinese are already minting them. It is easy to imagine 1 gram, 5 gram,10 gram etc.notes of gold and silver. The value of the notes would not be fixed per se but represent a physical amount of metal so value would be dependent on the market price of the underlying metal. This would not require government involvement but you can bet that governments know that if they don’t do it the market will. I can see the rise of bullion banks just like the origins of the modern banking system.

            After the catastrophic world fiat currency collapse, the total loss of faith in the crazy, keynesian central bankers and the resulting maelstrom of social chaos it is the only mechanism for the rebuilding the world that the market participants will accept.

            SteveW

    • China can sell their 3 trillions in 5 minutes, the day after that everything will be solved by the fed/US treasury as if nothing had happened.

    • Some good points, I heard about this but it is just an exchange not an actual Gold backing. It is in keeping with the trend where they are developing alternative global trade/finance systems to Swift, Panama Canal, the IMF and of course Gold – later I suspect Oil which was why trading with Nigeria in Yuan was interesting to me

      Don’t think they want to Gold to spike as it means they can’t accumulate as much at the current price plus China is set to have its own challenges when the global economy enters recession as they are subject to the laws of economics as much as anyone else.

      Ultimately this is all about planning for the day after tomorrow when we once again revert to the mean and live in a multi-polar world IMO

    • SteveW, owners per ounce silver on Comex going up again.

      https://2.bp.blogspot.com/-fkFfu0-yrL4/VxrpxrxSglI/AAAAAAABIxo/vDXGWA6BjWcmoRtkFX1WL2jXpvhRNF8OwCLcB/s1600/comexstockpileagrnoor03.php.png

      The drain continues until moral improves.

    • Silver Savior | April 26, 2016 at 1:57 am | Reply

      Ha ha the number of owners per ounce cracks me up. So 30 + people are essentially thinking that they are the owners of the metal? Omg this can not end well. Thanks for the visual.

  7. Oct 3rd the dollar will crash when the Chinese disclose their true gold silver holdings.

  8. Great interview from Bill Holter on the DB rigging, SGE, Comex, etc

    http://usawatchdog.com/comex-default-is-coming-soon-bill-holter/

  9. Silver Savior | April 26, 2016 at 1:49 am | Reply

    I think the next paradigm is going to be all about gold and silver also to a lesser extent base metals. Anything that is useful and physical. I think the days of this Wild West unbacked junk are numbered. It’s clearly unsustainable.

    That is why today I go out of my way to buy silver. Before I think about buying something I think in terms of how much silver the item would cost. Most of the time I put the money aside to buy silver instead. It’s sure a good way to save and be protected at the same time. Fiat is very scary.

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