Gold & Silver Eagle Sales Spike In June As The Market Senses Financial Turmoil

There was a definite trend change in precious metal sentiment and investment demand in June as the market senses financial turmoil on the horizon.  Each day we see another announcement from Main Stream financial sources warning of upcoming systemic risk in the markets.

For example, Goldcore published the article “Hold “Physical Cash,” “Including Gold and Silver” To Protect Against “Systemic Risk” – Fidelity”, stating:

A fund manager for one of the largest mutual fund and investment groups in the world, Fidelity, has warned investors and savers to have an allocation to “physical cash,” “including precious metals” to protect against “systemic risk”.

Then we had this from Zerohedge the very same day, “$140 Billion Bond Fund Goes To Cash As It “Braces For Bond-Market Collapse”:

Recently, it’s become readily apparent that some of the world’s top money managers are getting concerned about what might happen when a mass exodus from bond funds collides head on with a completely illiquid secondary market for corporate credit.

Furthermore, we have the continued threat of a Greek exit of the European Union.  With the tremendous amount of volatility in the movement of bond yields over the past month, the Mother of all Black Swans may finally take place in the latter part of the year.

It seems as if precious metals investors can sense this as sales of Gold and Silver Eagles spiked in June.  Gold and Silver Eagle sales jumped considerably higher from May:

U.S. Gold & Silver Eagle Sales May vs June

Silver Eagle sales up until June 23rd are already 3.28 million oz (Moz), surpassing the total 2 Moz sold for May.  Gold Eagle monthly sales are the second highest this year at 53,500, compared to 21,500 sold last month.  The trend change looks even more clear when we look at sales of Gold and Silver Eagles since February:

U.S. Mint Ealge Sales Table

With a week of sales remaining, Silver Eagle purchases in June will likely be the highest month (excluding high January sales) surpassing March’s record of 3.5 Moz.  Also, we can see that Gold Eagle sales in June are the highest compared to the previous four months.

THE SILVER CHART REPORT Rolls Out Next Week

SIlver Chart Cover Graphic 3D shadowLastly, I wanted to mention the release of THE SILVER CHART REPORT next week.  The report has 48 silver charts from some of my work over the past six years (all updated), including many new ones never seen before.

The report includes a silver price chart that I believe very few, if any in the precious metal community have ever seen before.  Even though my readers have seen a few of my silver price charts in previous articles, this one is brand new.  One look at this chart, and the investor will clearly see why silver  traded a certain way over the past 100+ years.

THE SILVER CHART REPORT is made up of five sections that cover the silver market and industry like no other single publication on the internet.

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22 Comments on "Gold & Silver Eagle Sales Spike In June As The Market Senses Financial Turmoil"

  1. QueenOfEurope | June 24, 2015 at 4:27 pm | Reply

    Hi Steve, how much will cost The Silver Chart Report? Just want to know how much money I must prepare for it.

    • QueenOfEurope,

      I actually struggled for quite awhile about the price. But, after looking at what the competitors charged for their reports, I finally came up with what I thought was a fair price.

      THE SILVER CHART REPORT will include 48 charts, with a page of description on each. The Report will be coming out on Tuesday at a price of $25.

      steve

  2. Steve, in your report will there be any recommendations for silver miners to invest in. Preferably the juniors. Thanks for all the hard work.

    • MudGod,

      Sorry, this report does not focus on the primary silver miners. However, there are a few charts that show a breakdown of the miners average yield. I have one chart that lists the majority of the primary silver miners and their average yield for 2014 as well as the average yield of the group.

      My second report that will follow this one will be THE SILVER MARKET REPORT which has information on the silver market that I believe 99% of the folks in the precious metal community have never seen before. I will follow that report with the PRIMARY SILVER MINING REPORT. However, I will not focus on juniors. Why? Because I believe peak oil will not allow the majority of junior companies to become commercial mines.

      Sure, when we do get a revaluation of gold and silver, some of these juniors could see huge moves. Unfortunately, I know too many mining analysts that lost their shirt and subscribers focusing on the juniors. I think the BEST INVESTMENT STRATEGY is to focus on those mines that are producing and have long term plans.

      We must remember, peak oil will be death to Global GDP. Once Global GDP declines, so will the demand for base metals, such as copper, zinc and lead. It won’t be a high price of oil that will be the problem, rather it will be the availability of oil that will put severe stress on the mining industry.

      That being said, I do believe the primary silver miners will actually grow production for a while (unless we have half-a-dozen black swans turn the world into Mad Max) and remain one of the bright spots to invest in the future.

      So, my Primary Silver Mining Report will provide detail on how these companies actually perform and which are the best candidates to consider investing in. The worst candidates are the ones with the highest cost of production. I am already seeing one of the small producers with a high cost struggling.

      When the report is ready to come out, I will make sure everyone knows this is not a STOCK PICKING REPORT trying to recommend juniors for supposed BIG PROFITS like most other newsletter services that have for the most part lost 80-90% of their subscription base over the past 3-4 years.

      Lastly, there is one company that I am looking into that I might do a write up about. It’s First Mining Financial run by Keith Neumeyer. Keith started and built two different $billion dollar mining companies and I think this one just might be something to take serious.

      steve

      • Steve,

        Correct me if I’m in error, but for those readers less familiars with information previously on this website… UPPER CASE BELOW IS MY ADDITION TO YOUR SENTENCE

        “We must remember, peak oil will be death to Global GDP. Once Global GDP declines, so will the demand for base metals, such as copper, zinc and lead [ APPROXIMATELY 70% OF WORLD SILVER PRODUCTION COMES AS A BASE METAL BYPRODUCT, NOT FROM PRIMARY SILVER MINES].

        • David,

          You are correct here as well. Yes, it makes perfect sense to CAPITALIZE that part. In my interview with Kerry Lutz at Financial Survival Network, I explain how the base metal companies do not mine their silver for free. This is a big misconception by many folks in the precious metal community.

          steve

  3. Hey Steve,

    Very happy to finally be able to read your report.

    Fiat or silver only?

    Thanks,

    SteveW

    • SteveW,

      LOL.. that’s actually a good one. Fiat or Silver. Unfortunately, the easiest way right now is lousy Federal Reserve Note digits.

      steve

  4. Steve,

    This year I’ve been watching interviews with more top economists stating they believe this fall is when the crackup begins. Word is getting out about these sites, along with yours, so the uptick in metal purchases seems plausible. I’ve even started taking possession of cash in case the rules start changing for ATM withdrawals. Metals took another hit yesterday by the riggers to keep the masses complacent. I saw another good article to keep stackers hopeful for future returns.

    http://goldsilverworlds.com/price/silver-about-to-turn-more-volatile-to-the-upside/

    • Mark,

      I talk to some very well connected people in the industry and I hear some very interesting things. Unfortunately, a good bit of this info I cannot repeat as I would lose several good sources. However, the fall does look like a time when we see some serious fireworks.

      I just did an interview with Kerry Lutz at Financial Survival Network. I really enjoyed the interview and I hope some of his listeners understand the ENERGY-METALS-MONEY connection. Tomorrow, I am doing another interview with Mike Gleason at Money Metals. I was talking with Mike early today about what to chat about and he shared with me some of his knowledge of the retail precious metal market.

      He also states there have been some huge buyers of Silver Eagles way above and beyond the typical Mom and Pop purchasers over the past month.

      I truly believe the BIG MOVE in gold and silver will not take 5-6 months like it did in 2010-2011, when the price hit $49. Rather, it will likely take place in a matter of weeks this time around.

      Gonna be interesting indeed.

      steve

      • Ted Butler had a more poignant article than usual this week where he reckons that fine tooth combing of the committment of traders reports shows JPM and 3 other banks have never lost a dime on the comex in 7 years when shorting

        He also spells out that JPM’s clandestine accummulation of 350 million oz – I know Steve you believe it could be upwards of 500 million – if so means that if JPM ever wanna flip the switch they gain $500 million for each dollar silver advances in price.

        They thus earn $18 billion if silver hits its 2011/1980 level. I suspect this is considered by JPM to be their ‘get out of jail’ card in the next collapse

        • Steve’s information sources, which include some of the biggest silver & silver eagle sellers, and a guest author from the Perth Mint, do NOT lead to a conclusion JPM has been a buyer of American Silver Eagle. Maybe not Silver Maples either.

          The amount of physical JPM has is a matter of speculation at this point.

          • David,

            You are correct. However, JP Morgan could be acquiring silver bullion. As I have mentioned in several interviews, the U.S. is importing a lot more silver than we did last year and overall market demand is flat or slightly lower. Thus, someone is stockpiling silver bullion.

            Who knows if it’s JP Morgan, by I would imagine there are several large buyers.

            steve

        • carlos,

          JP Morgan could be one of the big buyers of silver bullion. However, I don’t believe its Silver Eagles and Maples. I spoke with many folks in the industry including Bron Suchecki at the Perth Mint and he also confirms he has heard nothing from the Authorized Dealers that JP Morgan is a big buyer of these official coins.

          Again, that doesn’t mean JP Morgan is not acquiring physical silver bullion. I do believe the big bullion banks realize at some point they need to be on the LONG SIDE of the trade.

          steve

  5. Hi Steve & any other PM followers,

    Firstly looking forward to the report coming out…

    Secondly, I would like to get everyones thoughts on JPM potentially holding the so called “silver hoard” for a big client? I.e Apple…

    From a companies perspective it would be necessary to insure themselves against potential dramatic increases in cost of production, physical shortages or trade wars.

    Thirdly, I have been following the Shanghai Gold withdrawals quite closely, as with most people. I just don’t get that everyone believes that this is a direct correlation to how much the Chinese government holds? Would it not represent the citizens of China rather than the government?

    Look forward to hearing the replies…

    Sorry about the gold question on a Silver website…

    • Dylan,

      As I mentioned in other comments, there is a good chance that JP Morgan is one of the big buyers of silver bullion. I don’t know for sure, but it makes sense as the U.S. continues to import more silver than is needed by the market. Actually I need to do an update as these elevated imports continued in March.

      As for Shanghai Gold withdrawals and Chinese Official holdings, you are correct. There is good speculation by Alasdair Macleod (of GoldMoney) that the Chinese Govt purchased most of their gold for their official holdings prior to 2002. He believes they acquired something like 10-15,000 metric tons as gold wasn’t in much demand during the 1980’s-2002.

      Alasdair states that a lot of foreign investment went into China starting at the end of the 1980’s and picked up considerably in the 1990’s. He believes the Chinese government acquired a lot of gold as payment during this time. Alasdair goes on to say that when the Chinese Govt. acquired the amount of gold they needed, they made it legal for its citizens to own gold after 2002.

      It seems as if the Chinese Govt continues to purchase all domestic mine supply and adds this to their official holdings including off balance sheet imports that we have no idea about. So, the Chinese Govt probably has at least 15,000 mt and more likely 20,000+.

      I would imagine the majority (or all) of the gold coming off the Shanghai Gold Exchange is going into private hands.

      steve

  6. Be very careful with mining stocks. All paper is interconnected as iou’s, pm’s are an insurance against paper failures. When shit really blows up, your mining stocks aren’t yours anymore.

  7. This is not an inflection point. It’s a US Gov’t supply problem of silver blanks for Eagles.
    Why June? Because on 01 June 2015, the allocation per dealer was lifted so they could order what they could sell instead of something less.

    Press release from 28 May 2015:
    The U.S. Mint released the following Note to Editors concerning weekly allocations to authorized purchasers of silver American Eagle bullion coins:

    American Eagle Silver Bullion Coins: Allocation Lifted

    We are pleased to announce that effective Monday, June 1, 2015; we will no longer be allocating American Eagle Silver Bullion Coins. Authorized Purchasers may purchase as many American Eagle Silver Bullion Coins as they desire. The United States Mint will continue to monitor its Silver Eagle Bullion Coin demand and adjust its bullion coin production accordingly.
    -end press release.

    Demand was approximately 50% more than the allocated amount of previous months to get “caught up”. I bet that premiums for retail buyers will also shrink slightly beginning in July. Competition, ya know.

    Cheers.

    pdxr13

    • pdxr13,

      Yes, while it’s true the U.S. Mint lifted the allocation of Silver Eagles for its Authorized Dealers in the beginning of June, it wasn’t the determining factor that pushed sales up to 3.2 million in June.

      For example, last year from Jan-May, the U.S. Mint also had the Silver Eagle on weekly allocation. I know this because I spoke on the phone several times with the U.S. Mint public affairs person, Micheal White. Even though Silver Eagles were on a weekly allocation, we had the following sales figures:

      FEB 2014 = 3,750,000
      MAR 2014 = 5,354,000
      APR 2014 = 3,569,000
      MAY 2014 = 3,988,500

      So, even on a weekly allocation, the U.S Mint still sold more Silver Eagles in certain months last year than Feb-May 2015.

      Furthermore, there is no allocation on Gold Eagles. With the new update today, Gold Eagle sales for June are now at 61,500, up 8,000 from two days ago. Which means, something is up in the market to motivate investors to purchase more Gold and Silver Eagles in June than they have all year if we exclude the normal strong month of January.

      Steve

      • I don’t disagree with your conclusion that smart people with some money over-and-above some short-term life-support preparation ought to buy silver and gold at these levels.

        North American oil is selling for below the cost of production and silver almost the same situation. P:E is crazy-high in lots of stocks. The news is all emotional distraction, like Confederate flag and stuck/hurt kitties. Troop and war hardware movement is what I really need to know. What about trade (Baltic Dry Index)? PM’s in-hand are easy to believe in (esp. pre-1965 US coin), like a case of green-tips from the Brown truck.

        pdxr13

        • pdxr13,

          I am in totally agreement with you last comment. The majority of U.S. Shale oil production is being sold below its sustainable cost of production. Furthermore, the majority of primary silver production is also being sold below its average cost of production.

          The only difference with silver is its SUPREME STORE of VALUE compared to oil. Oil is burned and that’s that. However, silver as well as gold will become high-quality stores of value as most paper assets that derive their value from burning increasing amounts of oil implode due to the peak and decline of global oil production.

          I also agree, the precious metals should only be purchased after the all other basics are taken care of:

          1) Home with no mortgage
          2) 6-12 months bulk food supply
          3) Water purification system
          4) $2-5,000 in Cash for emergencies
          5) Firearms and Ammo
          6) Optional: Independent Energy Source – Solar or Wind

          If a person has those items, then it’s wise to purchase gold and silver.

          steve

          • I have one of the six, could get two more quickly, but still think it is wise to be at least incrementally, and habitually, accumulating silver. By the time I accomplished “home with no mortgage”, there won’t be any silver at an affordable price. Cash is needed if ATM’s go down & banks run out of cash [they keep very little compared to what is in people’s checking and savings accounts]. But silver could become a form of currency again; i wouldn’t want to get in a crisis without some.

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