In Tom Clouds newest update, he discusses many topics on rising precious metals premiums, silver miners production cost higher than the market price, skyrocketing debt and the coming rise in the gold and silver price. However, one of the most important parts of his video is the number of financial planners now calling him because they are becoming more interested in precious metals.
Tom starts by discussing the rising precious metals premiums on certain products since the summer. He then talks about the primary silver miners average cost of production is above the current market price. I have written a recent article on this, which he quotes, and it’s true:
As I mentioned, Tom was quoted the data from the chart below which shows how the top primary silver miners average All-In-Sustaining Cost (AISC) is now $16.10. However, the AISC does not include all costs and also deducts by-product credits. I believe the costs are even higher:
All the primary silver miners shown in red posted a higher AISC than the current market price. There were only two that posted a lower AISC. Even though the silver production cost is not the only factor that determines the market price, it is at least helps provides a floor. We must also remember, these AISC were based on much higher oil prices in the third quarter. Oil prices have now fallen by more than $20 from their highs. So, I believe the primary silver miners costs will continue to decline over the next several quarters if oil prices remain at the current level or fall further.
While the silver market dynamics Tom discusses are important, I believe the best part of his update is the knowledge that financial planners have been reaching out to him becoming more interested in learning about precious metals for their clients. I have spoken to Tom on the phone many times, and he says that the overwhelming majority of financial planners do not even bring up the subject of gold and silver to their clients.
When the markets start to implode, either in a deflationary or hyperinflation bout, I can see more and more investors forcing their financial planners to get them invested in gold and silver to varying degrees. As I have stated for the past several months now, investors will start to rotate out of falling stock and real estate markets and into precious metals to protect their wealth. It would only take a small percentage of financial planners and investors getting interested in gold and silver to push their prices to new record levels.
STAY TUNNED FOR NEW ARTICLES THIS WEEK:
I just wanted to let my readers know I will be posting some interesting articles this week, Wednesday and Friday. They will both be on the precious metals. The one on Wednesday shows the current Global Debt Level in reference to Gold Investment and what that means going forward and the article on Friday will show what is taking place in the Top 5 Gold Miners. Let’s just say, there are some very interesting facts and data in that article.
Lastly, if you haven’t checked out our new PRECIOUS METALS INVESTING section or our new LOWEST COST PRECIOUS METALS STORAGE page, I highly recommend you do.
If you are new to this site, you may want to check out our PRECIOUS METALS WEBINAR. There is a lot of excellent material discussed during that webinar… for free.
DISCLAIMER: SRSrocco Report provides intelligent, well-researched information to those with interest in the economy and asset values. Neither SRSrocco Report nor any of its owners, officers, directors, employees, subsidiaries, affiliates, licensors, service and content providers, producers or agents provide financial advisement services. Neither do we work miracles. We provide our content and opinions to readers only so that they may make informed decisions on all types of assets. Under no circumstances should you interpret opinions which SRSrocco Report or Steve St. Angelo offers on this or any other website as financial advice.
Check back for new articles and updates at the SRSrocco Report. You can also follow us on Twitter and Youtube below:
What Tom says is true, but only in periods of extreme economic turbulence, as for instance hyperinflation or a currency reset. We are approaching this period, but it will not start next year (in 2019 there will be an important rally yet). PMs are only a hedge. Usually, other financial instruments give you higher profit.
I totally agree with Tom, but it is not the beginning of the predicted mayhem in the markets. It is only a temporary correction in major indices.
Tom ROCKS!
Boring!!!
Looks like the Crappto bulls messed their pants!Buy more – just turn off the fan.
MAYBE . . . and maybe NOT. I’ve heard this a thousand times before, and each time I’m disappointed! But I’m so stubborn that I keep buying whatever the price !
Ha – BANKERS ! !
Of course, they are finally getting on board, precious metals especially gold https://bullionexchanges.com/buy-gold has always been a worthwhile investment.
More than ever it is important for the continuity of the system, and the perceived value of the dollar, to suppress G & S prices. And since 2011 the software to do that has been well developed. That is what is different than in the past.
Yes, there will be a breaking point. It will be a short lived period between when G & S move up sharply [and the dollar and derivatives break down], and society in densely populated areas breaks down due to economic chaos.
The idea [touted on some sites] that one will buy vacation homes etc. with their massively revalued PM’s is ludicrous. If you have abundance when others don’t, you better be discreet, not flamboyant.
I’m pretty sure when G & S move higher, societal calamities won’t be far behind. Then good luck getting your stored metals back in your hands from a storage facility; maybe you can get them transferred into fiat currency digits in your account.