TOM CLOUD PRECIOUS METALS UPDATE: Central Bank Gold Buying & Silver Market Update

Tom provides a new update on central bank gold buying and what is taking place in the silver market.  Tom discusses how central banks purchased a record 630+ metric tons of gold last year, and he sees continued strong buying as China and Russia diversify away from U.S. Dollar assets.

According to the data that Tom is looking at as of March, central banks are on track to purchase over 800 metric tons of gold.  He says, “What do central banks know that we don’t?”  Tom goes on to say, “why are central banks purchasing so much gold… do they believe it will be apart of some new currency reset or gold-back currency?”

Furthermore, Tom believes the U.S. Dollar will lose a great deal of value during a reset.  And, if you own most of your wealth in U.S. dollar assets, you could take a big haircut, which is why it is wise to hold a portion of your wealth in the precious metals.

Tom explains what he heard in a meeting of precious metals wholesalers that the gold-silver ratio might go back up to 100+/1, because of the current big demand for gold by central banks and large investors.  Even though the wholesalers believe the gold-silver ratio could go to 100/1, the need for industrial silver in electric cars, etc. will overwhelm the silver market.

Tom also hears that at some point, JP Morgan will go long silver which will put it back into another bull market.  We must remember, silver is trading close to its low versus the overall markets which are closer to their highs.  When the stock market suffered a big correction back in December, the gold and silver prices shot higher.  So, I don’t believe we are going to see silver fall much during the next market crash.  Rather, I see silver disconnecting and heading higher with gold.

Tom Cloud has been in the precious metals business for 43 years, since 1976.  He has a lot of experience in the precious metals industry and understands the gold and silver market better than most dealers in the industry.

If you are new to the precious metals market and had questions, Tom Cloud would be happy to answer any questions.

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29 Comments on "TOM CLOUD PRECIOUS METALS UPDATE: Central Bank Gold Buying & Silver Market Update"

  1. DisappearingCulture | April 8, 2019 at 3:33 pm |

    “Tom also hears that at some point, JP Morgan will go long silver which will put it back into another bull market.

    JP Morgan went long silver last year, and the price did not go up.

  2. Brant Lee | April 8, 2019 at 6:17 pm |

    What does Tom mean by storage costing 50 basis points?

  3. Brant, I think it means 1/2% of the asset value that you choose to store with them.

  4. petedivine | April 8, 2019 at 7:32 pm |

    Tom released some good information about handling boomer self-directed IRAs. I think the boomers are starting to figure out that the system won’t be able to support their retirement aspirations. I see a stampede into gold and silver in the not too distant future.

  5. Stephan Vogt | April 9, 2019 at 3:14 am |

    Tom heared always positive “voices” about the PM-Price.
    They never realized.Should go to the doctor…
    At the end those people are in response that many people lost a lot of money.
    Me too.

    • Petedivine | April 9, 2019 at 5:03 am |

      Really? You see your PM investments as lost money? Perhaps you should sell off your remaining assets and invest in more conventional instruments…like stocks. It would make more sense then complaining about your financial losses on a PM website. If you really feel that way, why listen to Tom’s video? weird.

    • DisappearingCulture | April 9, 2019 at 8:50 am |

      I agree the PM dealers always are hearing [or at least voicing] that the prices of PM’s in dollars is going up…and soon! It’s what they do to sell; some are true believers that the price will go up very soon. BUT PM DEALERS ARE NOT RESPONSIBLE FOR PEOPLE THAT “LOST A LOT OF MONEY”. Each individual is responsible for their spending habits, and what results from that.
      A new car dealer says buy it now at this unbeatable discount…
      But “going to the doctor” because someone bought something that went down in dollar resale value makes no sense…unless that thought is tied in with depression, or low self-esteem, or severe anxiety.

    • This time Tom is corect in that PMs will rise, but it is not going to a major bull market elevating silver to $50. Rather, one should expect $25. One more remark, PMs dealers always see a potential for growth. After several false predictions they eventually are right which they brag about for the next several years.

      • Hi Ed,

        Will you be selling your silver at $25.00?

        • Only people who are short of cash should sell at around $25. Stock markets will rally one more time and silver will decline substantially as it is extremely volatile. Only around 2024 will the real bull market for silver start. That’s my personal opinion.

          • Ed, silver is far from being extremely volatile. If you’re looking for extreme volatility then please check cryptocurrencies.

            Even stocks such as TSLA or MSFT are much more volatile (and thus riskier) than silver.

          • Hi Ed,

            I share an opposite view of the stock market and metals. I see markets falling from here and metals rising. Now is a great time to be adding to your metals.

          • I stopped worrying about PM prices a long time ago. I’ve gotten pretty good at trading to make extra Fiat and I just buy PM’s every several months. You have to remember that the banks always win and they’re buying a lot of gold. Eventually the dollar will die.

    • Stephan,
      You are a native German speaker. Your English is excellent, but not perfect. Tom is not saying that he hears “voices” as in he is crazy or clairvoyant. He means voices in the sense of “opinions” or “comments” expressed verbally in discussions with other people. Also, Tom is a Southern Gentleman and Southerners use slightly different expressions and metaphors than the Mid-West/Standard/Hollywood American English dialect. Just keep that in mind.

  6. If you ask your barber if you need a hair cut you think he will say no? Everyone who sells something always has a reason for you to buy. That is why it is advisable to have an open mind to all assets.

  7. Stephan Vogt | April 9, 2019 at 10:01 am |

    In the moment i see deflation everywhere.
    Why should PM raise in those times?I told it years ago and the direction was right.Now i see much more worse time in front of us.
    PM are good, when inflation occurs.The european banks maybe break down.But then
    everything goes down.Maybe cash is the best.Therefore they go in direction cashless money.

  8. Stephan Vogt | April 9, 2019 at 10:51 am |

    If everyone can only talk nonsense, because he wants to make a deal, then we get to where we are now. I don’t think that’s a good attitude.

    • DisappearingCulture | April 9, 2019 at 11:32 am |

      I don’t understand this last comment of yours. A lot of people talk nonsense about a lot of things. Like a car manufacturer that puts cheap parts on their vehicle but claim they are the longest lasting on the road.
      Or pharmaceutical companies selling drugs that MIGHT effectively treat the symptoms of an underlying condition, and MIGHT cause terrible side effects or death.
      When you say “I see deflation everywhere” you would have to explain that observation; like where…give me examples.
      Why should PM’s rise now in these inflationary times [deflationary if one sees it that way]? Because the price of G & S are close to the average price to mine and refine to .999. And the cost to mine & refine is going up. So the price has to mover up incrementally to reflect that.

  9. Stephan Vogt | April 9, 2019 at 11:59 am |

    In the moment the world economy is struggling.The stock prices are only high because the big companys by back stocks.In germany(and europe) we have bad banks.Even much more worse than in USA.The big european banks make no money.
    In addition we have the target system.Not like in the usa the export/import difference from germany between the counties is not balanced at a time.We have no securitiys.Germanys export Target is now 1 billion Euro(german notation).

    In the USA the long bonds have an inverse interest rate.And then we have the brexit at the door.

  10. Stephan Vogt | April 9, 2019 at 12:15 pm |

    What do you not understand?I said you are in response for what you say in public.
    If a lot of people make wrong things, it doesn’t mean you should do it in the same way.

  11. Stephan Vogt | April 9, 2019 at 11:43 pm |

    No, because i lost 50%.Maybe it will be in future a little bit more.But i don’t need the money in the moment.

    • DisappearingCulture | April 10, 2019 at 7:13 am |

      They are not going down from this point [maybe very temporarily with a large equities market selloff], but with a rapid rebound.

      The reason again is the price is near the average cost of mining and refining to .999. It won’t be produced at a loss.

    • petedivine | April 10, 2019 at 2:20 pm |

      So you’re basically saying that you have a 50% loss on paper but you expect the price of PMs to go back up, so you haven’t sold your PMs yet. Is that correct? And once the price goes back up you plan on selling? But if the reason the price went backup was due to a financial disruption then you might not sell? Is that correct?

  12. Stephan Vogt | April 11, 2019 at 12:10 am |


    Title:is the EZB a danger for the financial markets?
    To put it straight away. I don’t think the ECB has any ammunition left when it comes to further manipulating the financial markets and thus covering up the unresolved euro and debt crisis. However, I believe that the ECB can only act belatedly and will therefore be overtaken by the other central banks: with considerable consequences for the euro zone and the local assets. In view of an increasingly cooling global economy, we have to deal with this scenario.

    Negative interest rates also in the USA
    Albert Edwards, who has been warning about Japanese conditions in Europe and the USA since the late 1990s and speaks of an ice age on the capital markets, is not alone with his forecast: More and more renowned observers are also expecting negative interest rates on ten-year government bonds in the USA in the wake of the next recession. This is happening against the background that even today bonds worth more than ten trillion US dollars are only yielding negative interest rates.

    Stanford economist Cochrane: “We should open a bottle of champagne and say: Well done”.
    “We should open a bottle of champagne and say, “Well done.”
    John Cochrane unexpectedly appears to be a fan of the European Central Bank. In an interview, the Stanford economist explains what disappoints him and how to save the ECB.
    by Stefan Reccius
    The reason for this expectation is certainly known to regular readers of this column: After decades of too lax and asymmetric monetary policy
    – global assets are too high (and must not fall!),
    – the debts are too high (and cannot fall without collapsing the assets),
    – the leverage of the real economy and the financial sector is too high,
    – the real economic impulse of new debts is too low
    – and the zombification of enterprises too far advanced.

    In short, we have manoeuvred ourselves into a corner and it is becoming increasingly difficult to imagine a painless way out. Or can the central banks think of something else to turn the system around a bit and allow everyone a few more pleasant years of rising asset prices, a stable economy and a illusion of prosperity on credit?

    Monetary and fiscal policy will become one
    The fact that central bankers and politicians are thinking intensively about this topic is demonstrated by the flood of test balloons launched from academia in recent years. The list of ideas brought into the discussion is quite consistent in itself. The aim is to enable the central banks to achieve even more negative interest rates and further extensive injections of liquidity, while at the same time limiting escape routes from the system:

    – Fight against cash: A campaign against the use of cash has been going on for years. First of all, economists like the former chief economist of the IMF, Kenneth Rogoff, called for cash to be abolished as far as possible. Then the 500 euro note was abolished, which significantly increases the storage costs for cash. Now the IMF came up with the idea of taxing cash in the event that there is negative interest on the bank account. All this fits in with the scenario of a planned devaluation of money and thus of receivables and debts.

    – Fight against gold: In a further working paper, the IMF adds that gold is a destabilizing factor for the economy. This is, of course, true if one supports a system in which any amount of liquidity can and should be created in order to stimulate the economy. Since there is no sign of a return to the gold standard anywhere, one wonders why the IMF has come up with this issue today. One reason could be to discredit a sound financial and monetary policy (as it was pursued and demanded by Germany in the good old days). Another is to provide the moral argument for restricting private gold ownership. For gold is the ultimate money into which one can and should flee given what lies ahead. Anyone who thinks that a ban on private gold ownership is unthinkable should be reminded of German, but also US-American history!

    Record low remains: ECB leaves key interest rate at zero percent
    ECB leaves key interest rate at zero percent
    Interest rates in the euro zone remain at record lows. Whether at least the penalty interest rates for banks will change will remain to be seen for the time being.

    – Restrictions on capital movements: Adequate restrictions on the free movement of capital, depending on the environment, are seen as a suitable instrument for preventing crises and stabilizing financial markets. They are unavoidable if the flight of savers is to be prevented. If cash and gold are no longer used as alternatives, the only thing that remains to be done is to flee to foreign countries.

    Translated with

  13. Stephan Vogt | April 11, 2019 at 2:06 am |

    Please read here.

    You can translate it with deepl.
    As an resulat from this article i expect a managed gold and silver price.
    So much that the miners will not go to the gully.
    I bought most of my silver for 30-35 dollar.I don’t think that in the near future we will reach this value.

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