Precious Metals Prices To Rise As The U.S. Economy Disintegrates

As the U.S. economy continues to disintegrate, increasing numbers of investors will be forced to move out of paper assets and into physical gold and silver to protect their wealth.  At first the move will be slow, but as Americans wake up from four decades of fiat monetary amnesia, it will turn into a torrent.

Unfortunately, there won’t be much in the way of physical precious metals to “GET” at this time, as the clever Chinese and Easterners already cleared most of the shelves.  However, Americans will still be shocked and stunned that they didn’t see this big transfer of wealth coming….. and there is a good reason for that.  Brain damage.

Well… let’s just say, a collective brain damage.  Now, I don’t mean everyone and we really can’t blame the majority of the public as they are extremely gullible.  Gullible to the extent that when news or a breaking story is on the BOOB TUBE, well then it must be true.

Which means, if the MSM actually did its job of finding and reporting the truth, rather than reading the Elite and Corporate controlled feed on the teleprompter, then we would probably be much better off today.

But of course, this isn’t the case.  As economic indicators go from bad to worse, Americans for some strange reason believe (or hope) things are finally turning around for the better.  However, if we look at the real data, things are heading right back over the cliff.

According to ZeroHedge, Wholesale Sales Collapse Most In 5 Years As Auto Lead Inventories Surge:

Sales is the largest in 5 years and aside from the financial crisis is the worst since 1993! This is also the biggest miss on record. Inventories rose more than expected (+0.6% vs +0.4% expectations) which could be a problem as the inventories/sales ratio surges to its highest in 11 months. Unsurprisingly, Autos saw the largest inventory build (+6.8% YoY).

Auto Inventories

Furthermore, the most comatose areas of the retail sector are hemorrhaging first, making way for the full body blow to come later.  Here are a few of the retail casualties from Michael Snyder’s  article, “20 Facts About The Great Retail Apocalypse”:

#1 As you read this article, approximately a billion square feet of retail space is sitting vacant in the United States.

#2 Last week, Radio Shack announced that it was going to close more than a thousand stores.

#3 Last week, Staples announced that it was going to close 225 stores.

#4 Same-store sales at Office Depot have declined for 13 quarters in a row.

#7 Sears has closed about 300 stores since 2010, and CNN is reporting that Sears is “expected to shutter another 500 Sears and Kmart locations soon”.

Some members on Snyder’s site commented that he was just focusing on the worst stores and that they were not a good indicator of the retail sector.  While that may be true, I see things getting bad enough that we will eventually see McDonalds, Burger King, Wendys, Olive Garden, Starbucks, Best Buys, Targets, Wal-Mart and etc. closing stores.

It’s coming, unfortunately the majority of investors and public don’t realize it yet.

You see, the collapse of the U.S. and global economy has more to do with energy than all the theft, manipulation and fraud taking place in the financial system…. even though there’s a hell of a lot of it.

Why is this so?  Try to shove a stack of $10 bills in your gas tank and see how far you get.  Or how about a farmer trying to run his tractor on an interest rate swap.  Lastly, a manufacturing plant needs electricity to run its operations, not a futures contract.

U.S. Natural Gas Storage Levels Down 50% Compared To Last Year

Last month I posted the graph below from the EIA – U.S. Energy Information Agency.  At the time, the U.S. was down 34% in underground gas storage:

U.S. Natural Gas Storage 21314

I forecasted that the drop would be between 800-1,000 Bcf.  The EIA stated that it would fall to 965 Bcf by the end March..  Today, the EIA released their natural gas storage report… and we had another whopper of a draw-down.

For the week ending March 7th, U.S. natural gas storage levels fell nearly 200 Bcf to 1,001 Bcf (Bcf – billion cubic feet).

NATGAS Storage MAR 7 2014

As we can see from the table below current gas storage levels are down 49% compared to last year.. and we still have 3-4 weeks remaining for continued withdrawals:

NATGAS Storage Table MAR 7 2014

So, it is quite possible that we will hit a low of 800 Bcf by the end of March (lower than the 965 Bcf forecasted by the EIA) before the industry starts rebuilding the storage levels in April.

The EIA is optimistic that record natural gas production in 2014 will build the storage levels up 2,500 Bcf by the end of October — the end of the injection season.

What happens if storage levels fall to 800-850 Bcf, and we are only able to add 2,000-2,200 Bcf of gas by the end of October?  That would be 20% less compared to the 3,925 Bcf level reached in October 2013.

This is quite possible if we look at the following graph.  This is one of the graphs included in my upcoming THE U.S. & GLOBAL COLLAPSE REPORT.

Total U.S. Dry Natural Gas Production

You will notice that U.S. natural gas production grew at least 2.5% each year (much higher most of the time) with record increases of 7.5% in 2011 and 4.8% in 2012.  However, in 2013 total U.S. natural gas production increased a paltry 0.8% compared to 2012.  This was the lowest annual increase going back to 2005.

How could this happen?  Isn’t the U.S. planning on building LNG terminals to ship all our surplus gas overseas?  How on earth do we plan on exporting natural gas if we are still a NET IMPORTER?  That’s correct.. we still import natural gas from Canada to fill our shortfall.

The U.S. will never become energy independent or a net exporter of natural gas.  Furthermore, I believe we will see PEAK NATURAL GAS PRODUCTION in the U.S. much sooner than later.

I will explain this in detail in THE U.S. & GLOBAL COLLAPSE REPORT.

Physical Precious Metals Availability To Dry Up As The U.S. Economy Disintegrates

It’s no secret to the precious metal community that the Chinese and East are rapidly devouring all the physical gold they can get their hands on.  According to Koos Jansen’s InGoldWeTrust, the Chinese imported a record 418 metric tons of gold in the first two months of the year.

The Chinese as well as many other countries in the East realize that the U.S. Dollar’s days are numbered, so its wise to acquire as much gold as possible.  In doing so, it puts severe pressure on the paper gold market.  Because, the more physical gold that heads East, the higher degree of leverage comes into the paper market.

At some point the PAPER GOLD MARKET will crack and the public will get a rude awakening.  This will probably be the time U.S. citizens experience seriously high rates of inflation.

Americans trying to buy gold or silver at this time will find out there is very little to acquire only at much higher prices.  Currently, the U.S. Mint Authorized Dealers continue to purchase every allocated Silver Eagle.

In just the first two days of this week, the U.S. Mint sold 1,124,500 Silver Eagles:

Silver Eagle Update March 11 2014

Last week, the U.S. mint sold 1.1 million Silver Eagles.. the total allotment for the week.  This week, the U.S. Mint increased its allocated amount to 1.2 million and sold 94% (1,124,500), in the first two days.

Chances are the authorized dealers will purchase the remaining 75,700 Silver Eagles by weeks end.  If the U.S. Mint continues to allocate at least 1 million Silver Eagles each week for March, it will be another record for the month at over 4 million sold.

Here are the Silver Eagle March sales figures for the past 3 years:

2011 = 2,767,000

2012 = 2,542,000

2013 = 3,356,500

Again, if the present sales trend continues, 2014 March sales will surpass 2013 by nearly 1 million ounces.

Furthermore, first quarter Silver Eagle sales are on track to reach 12.8-13 million.  At this rate, 2014 could be another record year at 45-48 million Silver Eagles sold.

If the Silver Eagle allotment is selling out each week (since the beginning of the year), what happens if the American public wakes up and wants to purchase Silver?  How would that huge demand impact price?

Currently, Americans are invested in the largest Paper Ponzi Scheme in history.  They hope and pray that the DIGITS in their accounts will be good as gold when they retire.  Unfortunately for them, the only thing that is good as gold….. IS GOLD (or silver).

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TimeTraveler
Guest
TimeTraveler

Greetings- your article represents the truth, which is something the people of this country know nothing of! They are so manipulated and dumbed down from all the chemicals and TV they watch, and truly believe their government will never lie and will always be there to provide for them.

They are about to find out how terribly duped they have been. The hour is near for all

stanley
Guest

Does anyone think that 2100 ounces of silver is a lot? will that much make me rich in the longrun?

SilverSeeker
Guest
SilverSeeker

Before I can answer your question, I must inspect your 2100 oz in my specially equipped laboratory which is in a secret location that only I know of.

Thus, if you let me take your silver to my lab for analysis, I can get you an answer as to how rich you will be in about 7-10 days.

Please provide the pick up location and I’ll send my team over in their unmarked vehicles.

Don’t worry, they’re bonded so it’s all on the up and up.

stanley
Guest

WOW…Thanks . really answered my question.

Rodster
Guest
Rodster

Steve, you mention that humanities way of life is tied to oil. As oil goes so does the population. It’s the same thesis of Michael Ruppert. If so where does gold come into play? If humanity suffers from EROI/Peak Oil doesn’t that make PM irrelevant at some point?

store-of-value
Guest
store-of-value

You should read more on the topic. Asking if PM’s will become irrelevant at some point is like asking if currency will become irrelevant at some point. Unless The US and Russia nuke us back to the stone age, I doubt we are going to return to a barter system anytime soon…..

lastmanstanding
Guest
lastmanstanding

The barter system HAS returned and IS in full force…in my community and all over the world. I read somewhere in my daily travels that the barter economy is over 2 trillion $…In the US or worldwide…think it was just in the US. Regardless, 2 trillion is AWESOME! People who have some money left and are doing their best to keep their home and feed themselve are s-and-fkn tired of paying taxes to those who receive this money and get the same…for doing less than nothing. Better find a community that barters before the stone age gets here. At this… Read more »

lastmanstanding
Guest
lastmanstanding

PM’s are one of the most sought after tangibles on earth. Look at the amount of energy expended from the beginning to the end product. From the tech, to the equipment, to the final coin. One big continuous burn of fossil fuel. Every heated/energized building, every tire, every piece of steel in the massive equipment used…etc. Soon, the mining process will come to an end…the fuel left will not be wasted on it. PM’s will then return to their rightful place…the top shelf of the monetary system. I’m not sure what kind of “system” will be in place, but civilizations… Read more »

Simon
Guest
Simon

Nice words, lastman. Concur with everything you say.

joe
Guest
joe

That’s not possible. If gold/silver shoot to the top of monetary system then mining will only increase. It’s like saying there stores of money underground but noone to retrieve it…makes no sense unless your saying fuel will be more valuable than gold/silver???

lastmanstanding
Guest
lastmanstanding

joe. What I am saying is that fuel is being all used up at every second of the process. It cannot and will not continue for ever. Fuel will be not be wasted to make more fuel to mine anything. Whether you believe it or not, there is a line in the sand for EVERYTHING.

The search for metals will end and the metal in existence will have real value.

Homer
Guest
Homer

The Earth is an Indian giver!

lastmanstanding
Guest
lastmanstanding

Good one Homer…at least she’s honest about it.

If your sharp, you get to live and enjoy for a while…if not, well at least it painless once your dead.

Hoser
Guest
Hoser

It’s time to “Light This Candle!” Crash it! Now!

Erik
Guest
Erik

Brain Damage! Love it.

David
Guest
David

“Some members on Synder’s site commented that he was just focusing on the worst stores and that they were not a good indicator of the retail sector. While that may be true, I see things getting bad enough that we will eventually see McDonalds, Burger King, Wendys, Olive Garden, Starbucks, Best Buys, Targets, Wal-Mart and etc. closing stores”. I live a few miles from a busy shopping mall. Near the mall is a Wal-Mart and a Costco. Visually Costco’s customer volume is MUCH greater than Wal-Mart. And since they sell in bulk the average checkout transaction is significantly larger. The… Read more »

David
Guest
David

If and when a financial panic sets in people will also renew their rush toward firearms and ammunition, which has subsided somewhat from the last fervor. When that happens that won’t be available either.

If the someone chooses not to own a firearm in their home for self defense, like some of my friends, that’s their choice. I think it is a bad choice but to each his own.

Simon
Guest
Simon

Since when, in all of history, did owning a firearm solve anything? Anything at all? But like you say, to each his/her own, and that’s a fair comment to make.

David
Guest
David

Personal and family protection is something firearms have solved; from animals and psychopathic humans.

They only reason more homes are not invaded with residents there is the fear of the potential invader that the homeowner might be armed.

David
Guest
David

Firearms have solved another problem throughout their history…the need to have food to eat.

Majordad
Guest
Majordad

Simon says:

March 14, 2014 at 2:30 am

Since when, in all of history, did owning a firearm solve anything? Anything at all?

Answer: I think the American Revolution is one example where people owning a firearm did make a difference. Just saying…

PC User
Guest
PC User

Remember WW2 when Japan attacked Pearl Harbor ? The only reason why they didn’t do a land invasion on CONUS (Continental United States) was because, as the JAPANESE said, “behind every blade of grass there is a gun”. And that my friend is one hell of a deterrent.

Homer
Guest
Homer

When the Watts riots occurred, business owners standing outside their businesses with loaded firearms prevented the looting of their stores. Having a loaded firearm solved the problem of keeping their goods secure in the mist of a riot. That benefited the community, as the riots subsided, the community had a place to go and get their needed goods.

Steve
Guest
Steve

Rodster: As long as there are human beings there will be trade in some form. Owning PM’s protects your wealth as paper collapses. The trick is to switch your metal to usable commodities in time. That is to say when a system still exists when title can still be had for the arable land you can get at a deal.
Start planning now….not just pm’s. but the availability of fresh water sources, donkeys, chickens, solar panel gen sets, or what ever is appropriate for your region or “escape area”. Start planning now!

Homer
Guest
Homer

YA! Donkeys are good eatin’. No one can supply all of his own needs, even if you stock up, you will eventually run out. Therefore trade is the main characteristic of a civilization. Money is the grease that greases the skids in that transaction. People with a surplus, or needing a good, will exchange something for it. PMs will solve that problem as history has demonstrated, repeatedly. PMs are much more portable than 10 cartons of cornflakes. You may have to move more quickly in the future than you now realize.

JTM
Guest
JTM

When researching natural gas statistics, don’t forget that there are new regulations coming that will limit the massive amount of flaring of the natural gas industry. Flaring eliminates approximately 29% of fracked gas into the air, releasing six million tons (and growing) of carbon into the atmosphere each year. The industry believes it can capture 85% of natural gas in two years, up from 70% today, and to as much as 90% in six years. And that’s with rising production in the Bakken field, expected to grow 40% by the end of 2015.

GermanReader
Guest
GermanReader

In the german newspaper “welt” was an article some days ago about the dependence on Russian natural gas. The author suggestions for making us independent from evil Russia was to import LNG from USA. In the comment section of the article nobody complaint that it won’t be possible to do that.
As you can see the most Germans have this brain damage also.

Rojelio
Guest
Rojelio

Hi my German friend. I’m confused on where Germany might stand in this Ukranian issue. there are some (Jim Willie) who say that there are powerful alliances being formed between Germany and Russia as evidenced by new railway systems between the two countries. However, the rhetoric coming from Angele Merkel right now is extremely negative and threatening towards Russia. Where do you think things are headed in Germany?

GermanReader
Guest
GermanReader

The propaganda in the media is clearly pro USA/EU and against Russia. But reading the comments in the newspapers a lot people have the feeling that what we doing is not the right thing. My personal opinion is , the west was the main cause for all the mess in Ukraine. I think we absolutely dependent from Russian natural gas so I don’t understand how our leaders can’t see this. Mabe brotherjohnf (http://youtu.be/YY-r66Jwl80) is right that the hole thing is just a game show to divide Ukraine in to parts. But how knows maybe our leaders are really as desperate.… Read more »

lastmanstanding
Guest
lastmanstanding

93% is a resounding fu to the west. Thanks for your on the ground reply.

GermanReader
Guest
GermanReader

I must ad something, today morning some articles with comments about Ukraine topic. I have never seen such a big difference between the official propaganda and the opinion of the people in german newspapers. Despite people reject all the ideas to sanction Russia the MSM is pushing out ther propaganda without notice.
Let’s see how this will go on.

Patrick Henry 2014
Guest
Patrick Henry 2014

The closing of Staples stores is over the next two years, a consultant firm has been involved in our “Reinvention” the retail division is a just a causality of the economic conditions of certain markets and increased online sales, (We are the second largest online seller, just beneath Amazon)but these are not as concerning as the changes being made on the larger business division. 260 SD offices will be closing by end of this fiscal year. Office Max and Office Depot sales comps are off due to their merger and customer reluctance to resign corporate contracts, so more is going… Read more »

Thomas Malle
Guest

the new popularity of the walking dead type shows are a way to prepare us,kinda numb us down for when it really happens. Oh they wont really be dead,rather just as good as dead because they did not set themselves up to survive the systems collapse. And they will travel in packs,like wolves,and have reverted to being animals in search of a meal,a drink of non contaminated water. And whatever else you have that They do not. Store Closures!? Please …. there wont be any. What there will be is lots of Marshal Law and Death.

Tom Nacey
Guest
Tom Nacey

In famous periods of collapse the Romans made it illegal to abandon your unprofitable farm. The Germans under Hitler could not quit their jobs, (very popular with German management). Wage and price controls have been tried from revolutionary France to President Nixon. Remember that in times of financial crisis, always caused or enabled by bad government, no cost to you is too much for them to bear.

John
Guest
John

He who owns the GOLD makes the rules!
And theres too much wealth in this country to fall flat on its face overnight.
Its not 1932 ALL over!

roguefaction
Guest
roguefaction

If anything could and should have served as a cautionary tale for folks looking for a way of surviving the approaching storm, the trajectory of silver through the last couple of years would have to be it. Back in the heady days of 2011, you could hardly avoid the wave of aggressive calls for silver’s inevitable outperformance…. here’s a typical blast from that recent past… “Money Morning’s Martin Hutchinson believes silver and gold will continue climbing into 2011 and beyond. If enough investor momentum gains – and if China’s push for individual silver investment intensifies – he believes silver could… Read more »

AK
Guest
AK

Wise words but I disagree that the reputation of Gold and Silver bulls or the metals themselves has been tarnished by the price action over the past couple of years. Sure, in the main stream media Gold and Silver continues to be demonized and Silver and Gold bulls are widely viewed as lunatics. But those of us who buy Gold and Silver, not as an investment, but as insurance and long term wealth preservation pretty much KNOW what has happened is not free market action but paper price manipulation despite strong physical demand. Nobody can foresee the degree by which… Read more »

ron
Guest
ron

A.K., You are spot-on with your comments. Thank you.

roguefaction
Guest
roguefaction

Thanks for your input. I can disagree with nothing that you are saying, but I think you may have misunderstood why I have questioned the reputation of the gold/silver bulls perspective. It’s more about delivery than who is ultimately “right” in their prognosis. Gold will go much higher. Silver may also, but whether or not new buyers come into the market depends on how safe they feel about doing so. So it’s through their eyes I am talking about this, not those of the seasoned metals warrior! Of those who bought in at the time silver was pushed as a… Read more »

David
Guest
David

“Checking our assumptions and personal biases at the door, we can best serve the public interest and fellow citizens by showing an openness to ask if the purchase of silver coins is a flight to safety or a flight of fancy? Then, by reasoned arguments that take all the facts into consideration, a case can be built which will give potential new investors the sense of safety necessary for them to plunge into the precious metals”.

Very well said in my opinion. Sounds like the scientific method I was grounded in while getting my degree in geology.

Piper Michael
Guest

Wise words, but, you forgot several of the ‘precious’ metals…

lead, brass, and don’t forget copper…
😉
without those, you might not be able to defend the gold and silver.
You do have physical in hand, right?
If you don’t hold it, you don’t own it…

Welcome to the world of Eroei, its just getting started…

Silverguy
Guest

For over 3 years now I have been stocking up on Silver and some gold,!!! Let the U.S. game begin, I am ready !!! LMAO ……I could see the writing on the wall, long ago, lol

steve
Guest
steve

we need to take it upon ourselves to protect our future for what ever it may bring. Always need to be prepared and for god sakes keep a level head.

Rojelio
Guest
Rojelio

From your data, it appears that fracking gas might be starting to peak. I’m truly amazed that in the MSM, the plan for Ukraine appears to be to ship US natural gas over there in case Russia turns off their spigots! This sounds like the plans of some kind of lunatic. Do they actually believe this?

Johny Comelately
Guest
Johny Comelately

According to the spin doctors (Reuters), the Russian pressure on Ukrane may ignite U.S. exports of natural gas. They will just reverse the flow of the gas pipes. Lol. It sounds credible watching an expert talk on Reuters. Had I not read SRSrocco Reports I wouldn’t even think of questioning the report. I would just think to myself that there’s nothing to worry about here, watch the next news reel and go about my daily business. This is just one example how the media has completely warped reality. I think Steve is wrong to say “[Americans] hope and pray that… Read more »

Johny Comelately
Guest
Johny Comelately

Here is the Reuters link:
http://youtu.be/yRQXWYl9-aY

James Donahoe
Guest
James Donahoe

Your argument about gas supplies doesn’t hold much water. You’re comparing a 5 year average gas supply to one month with the coldest temperatures on record. Duh, you’re going to have a big drop off in supply. Based on your statistics, when the weather man says it’s going to snow heavily and you go to the store to buy bread and find the shelves empty (except for that single mangled loaf), I’m guessing you would come to the conclusion that bread supplies have dropped off and we’ll run out of bread in the future.

GermanReader
Guest
GermanReader

Steve brotherjohnf include your blog in his latest silver update:
http://youtu.be/YY-r66Jwl80

RUSS SMITH, CA.
Guest

Hi!, Patrons Of The SR Sorocco Report Et Al: As far as the dumbing down of America goes: The US Constitution in Article 1; Section 10 guarantees that the US Mint will provide FREE gold and silver coins as OUR money. The Constitution says nothing about the citizens of the US buying gold and silver coins, because there could have NEVER been a paper currency circulating by which citizens could purchase silver or gold eagles from the Mint, if the Constitutional money program mandate was enforced, This dumbing down process has cost US citizens their sovereignty and freedom of expression… Read more »

David
Guest
David

Russ,

Good comments, and of course you could have said more but probably were trying to limit your time spent commenting on a pathological situation.

But I just had to add a dishonorable mention to the federal reserve in relation to what you communicated.

David
Guest
David

I found this article about some surprising elites who not only own gold but are selling physical gold to high net worth investors:

http://lonestarwhitehouse.blogspot.com/2014/02/some-surprising-insider-goldbugs-part-ii.html

I would be most Americans don’t have any idea people like this are big gold advocates. This tells you that those at the top are preparing even as most Americans are not.

lastmanstanding
Guest
lastmanstanding

Nice link David…good to see the insiders appreciate pm’s also…especially when they are cheap.

Nice list of a certain ethnic bankers, neocons and Wesley Clark…didn’t he run for pres. as a lib?