With the Fed and central banks pumping up the markets with a record amount of money printing, liquidity, and stimulus, investor demand for precious metals continues to be very strong. In the first week of 2021, the U.S. Mint sold 2.7 million Silver Eagles. The Mint also sold 45,000 oz of Gold Eagles.
While Silver Eagle sales are elevated in the first month of every year as the Authorized Purchases are stockpiling the new dated official coin, 2.7 million in the first week is a solid start. With three more weeks in the month, sales of Silver Eagles may reach 4-5 million. According to the U.S. Mint website, here is the breakdown in Silver and Gold Eagle Sales.
Unfortunately, the U.S. Mint didn’t show any Platinum or Palladium Eagle sales so far in January. The U.S Mint didn’t sell any Palladium Eagles in 2020 and stopped producing Platinum Eagles in May. With a tightness in the Palladium market, it’s no wonder the U.S. Mint hasn’t sold any of these coins for quite a while.
Demand for precious metals continues to be strong even though we see NOISE BLEED price levels for Bitcoin. Bitcoin surpassed $40,000 today. Both Tesla and Bitcoin are perfect examples of TULIP BUBBLES ON STEROIDS. If investors want to know Tesla’s REAL FAIR VALUE, you need to check out the Silver Member post below.
Regardless, Silver Eagle sales in 2020 surpassed 30 million while Gold Eagles totaled 844,000 oz. Amazingly, the U.S. Mint has sold over a half-billion Silver Eagles and 24 million Gold Eagles, which turns out to be a 23/1 Silver to Gold Eagle ratio over the 1986-2020 period. However, the ratio last year was 36/1. Thus, the U.S. Mint sold 36 times more Silver Eagles than Gold Eagles in 2020.
What a surge in Silver Eagle sales in 2020 compared to the three years prior. Silver Eagle sales in 2020 were double that of 2019. And, if demand continues to be strong this year, we may see Silver Eagle sales top 35-40 million… that is, if the U.S. Mint can keep up with demand.
I believe we are going to see one hell of a strong year for physical precious metals investment. As the Fed and central banks continue to pump trillions into the markets, wise investors will take some of that MONOPOLY MONEY and buy real physical gold and silver.
Got your Gold and Silver Yet?
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What’s your medium to long-term positive forecast for platinum, Steve?
Thomas,
While we could see higher prices in Platinum in the short-mid term, I don’t think Platinum will do well long-term. I may be wrong about this, but while Platinum is a precious metal, it’s a more precious industrial metal. I don’t have a problem with someone investing in Platinum, just in case, but I would put the majority of my EGGS in Gold and Silver.
steve
I believe that Silver Eagle sales will surpass 1,000,000 per week on average in 2021. That is, as long as the Mint fulfills it’s legal mandate and freely provides as many Eagles as are demanded by the market place.
And that depends on how much silver they can “leverage buy” from other countries in 2021.
Steve, comparing bitcoin and tesla, merely based on ROI is unwise. Completely different asset classes. Tesla is a company that is supposed to make profits and have future earnings. Bitcoin is an inflation hedge against the unlimited money printing, a reserve digital asset, more portable, divisible, and harder than gold. Bitcoin will easily hit $100k before silver hits $100. BTC does not have profits or a dividend, but one can still earn a yield on BTC if desired. BTC was a great buy under $10k, a decent buy under $20k, a so/so buy under $30k, and now a risky buy above $40k. The question is, who is wise enough to buy the dip?
“Bitcoin will easily hit $100k before silver hits $100.”
While it’s possible enough late buying momentum chasers [investing idiots in my opinion] will push Bitcoin into stupid valuations [they already have in my opinion], I would love to take a bet you are wrong on that prediction.
I don’t need to take your money. You’ll need it to buy more undervalued $25 silver again…. in 2030.
LOL!
That’s a good one!
SD,
While TESLA and BITCOIN are two different asset classes they are both still TULIP BUBBLES on STERIODS. It’s not my fault that most investors today have become totally insane. Same thing back during the DOT.COM BUBBLE.
But, this time it’s much worse.
steve
Steve,
You believe this because you don’t fully grasp the ramifications of bitcoin. You look at the USD price per BTC and the speed with which that price has increased and determine its a bubble. Bitcoin’s overall market cap is currently 6.4% that of gold, and yet it is better than gold in all the ways that matter for a store of value in a digital world. It will one day exceed gold’s market cap, and just like Peter Schiff, you’ll have missed out on the trade of the decade. Are you smarter than Michael Saylor, Raul Pal, Paul Tudor Jones, Stan Druckenmiller, Anthony Pompliano and many more?
What is Bitcoin?
Go home troll. Bit chit is nothing more than someone selecting random pebbles and deeming them having value.
What is Bitcoin?
That was meant as humor. Lighten up everyone!
Hi Ho – my comment was directed to the troll SD
The intelligence of these replies is astounding. I submit to your sound, logical, and reasoned arguments….lol
Silver -9% today now… Bitcoin rules
Markus,
Yeah… that’s what we are going to see more of from investors. I see many people on Twitter making the same comments. However, we are still in the beginning stages of the Gold and Silver Bull Market. Bitcoin is still a MASSIVE TULIP BUBBLE ON STEROIDS.
steve
That is what I am counting on Steve. Just bought 100 more ounces of silver today. Yeah, bidder badder bling… or however it goes, I should have at least bought a little bitcoin when I first read about it in 2011…..but. Right now we have plenty of food in the kitchen, good shelter, kids are educated and happy and still have jobs, only very basic bills, healthy and lots of hiking and beach walks. Right now it’s a good life, and if I die before the massive uptrend in silver/gold, then I’ll be happy to leave it to Paul and the kids. They have kept my life very full.
Ronald,
Glad to hear you took advantage of the lower silver price. We likely will see even lower prices moving forward. However, the BIG MOVES are still ahead of us, but it will take some patience. Unfortunately, most people (not including you) don’t have the patience anymore in this HIGH-TECH CLICK OF THE MOUSE JUST IN TIME INVENTORY SYSTEM of Living.
steve
If the wild valuation predictions are halfway true, it’s a tulip bulb bubble mania on methamphetamine.
DisappearingCuluture,
Wait until BITCOIN finally gets a correction lower. It will be breathtaking.
steve
Folks, while I respect and value your opinions, I will unfortunately profoundly disagree. On the short to medium term (6 to 18 months). Do you see now how PM prices are HEAVILY manipulated ? JPMorgan et al act as agents of the PTB (Fed, Rothschilds, BIS, etc…). The “fines” are for show – nothing more. Today’s price crashes are evidences of that. As I mentioned in a previous post, silver will be the LAST asset to go parabolic/vertical. THE LAST. Why? Because it’s been the people’s money for 5,000 years – as we all know. Volker, Nixon and friends admitted as much via biographies and/or through their actions. The crypto bull run as BARELY begun. You think BTC at $40K is crazy ? That’s NOTHING compared to what’s coming. Entry and exit in that world remains difficult and MARGINAL, especially to Americans. In the coming months, Paypal will solve some of those issues, if only superficially – and that’s only one player. So 6 to 18 months from now the crypto market cap will hit $5T, then $10T and that’s still chump change compared to all other asset classes that are, themselves, technically bankrupt as we know (bonds, commercial real estate, derivatives, etc…). PMs will have barely moved. Maybe gold will have gained a few hundred bucks, but that’s because of foreign CB continuing their accumulations. Mark my words. During that period my crypto portfolio will explode, and when this class goes in full popular mania I’ll be crystallizing those gains and backing up my truck on PMs. Let’s talk in a year….
Lord Kossor,
Got it.
steve
Correction [generally defined as up to 20%] or greater?
Steve,
It’s amazing we have so many pundits, prophets, and crystal ball holders with sage wisdom that can see the future.
DC, yes, that’s because history (bubbles in particular) repeats itself. I plan to ride this next bubble and time it. Past recent bubbles include: 1990s dotcom, 2000s housing, 2010 stock indices. Next one: 2020s cryptos. I learn from history, my mistakes and other people’s mistakes. Do you ? Here’s some free advice which you can trash as you like (after all, it’s free and probably worth exactly that): study and learn from other analysts. I follow about 80 and pay for 5, including Steve. I’ve been studying intensively the crypto world for 6 months, I’m a CFA charterholder as well as a CPA. I’m not the smartest, but what I lack in brain power I compensate in intensity of studies. Cheers and good luck 🙂
Of course a correction is coming. Nothing goes straight up forever. In the entire history of bitcoin, the longest anyone ever had to wait to be “in the money” was 3 years, 4 months. That is if you bought the exact blow off top at the end of the bull cycle. Someone buying the top today this early in the bull cycle, who experiences a 30% correction will likely be made whole within weeks/months. How has buying the silver top worked out? Forty years later still down 50% (nominal). Such a great investment, lol
Tulip bulbs, when their use as a currency ended, still had value as being able to grow into something that could be enjoyed. No Bitcoin fanatic will understand this, but bitcoins offer absolutely nothing if their use as a currency is rejected. Mathematically, this makes tulip bulbs infinitely more valuable than bitcoins.
Your correction opportunity is now happening (11JAN21). We are at a 28% correction from the peak on 08JAN21. If we go under $30k that would be a great opportunity for an entry. Good luck.
Another Markus troll
I don’t understand Bitcoin and therefore I don’t buy/trade it.
I am still a big believe in silver. Buy low. Today it offers an opportunity to buy low. My time frame is 5-10 years. Hopefully there will be good time to exit from silver investments in the time frame.
Exit silver. Where to? Fiat?
Exactly. Only if/when you need currency to buy something you want or need.
What do you guys make of the new LBMA NSFR trading rules that are supposed to be implemented by end of June 21. It appears that LBMA PM participants are now required to have 85% funding for their trades. Therefore, leverage is greatly limited by the new rules.
LBMA states these are the Implications of the new rules:
Should the 85% RSF requirement be introduced, we may see:
• A rise in the cost of the clearing and settlement service provided by LPMCL which may impact the service;
• A fall in market liquidity as banks look to exit the market;
• A rise in the cost of business across the supply chain.
http://www.lbma.org.uk/lbma_media_centre/net-stable-funding-ratio-update
This seems like a big deal and without leverage in the LBMA wouldn’t PM prices rise? Perhaps the European Banking Authority is planning on recapitalizing European Central banks with a higher Gold price.
Owning Bitcoin to me is like living in a bad neighborhood with no doors or windows on your house and told to sleep well vs owning holding Silver or Gold in a very secure home and neighborhood.
False dichotomy. Why not own both?
SD – because bit chit is going to zero
How has shorting bitcoin worked out for you? You must be penniless by now putting your money where you big mouth is. Don’t you get tired of being wrong.
Where have you gone,
Joe DiMaggio?
Our nation turns it’s lonely eyes to you!
The snowflake libtards have arrived claiming bit chit is the answer to all our worries.
Every bitcoin owner wants you to be reminded what bitcoin is supposed to be and do, but they want you to forget everything you know about gold first.
Does it make you feel better to throw bitcoiners into your pre-conceived imaginary boxes? Early bitcoin adopters were cypherpunks and libertarians. Libtards want to suppress free speech that goes against their narratives. Bitcoin (and decentralized crypto in general) are censorship resistant – in a world gone mad with censorship. Good try though.
Censorship resistance?
Excuse me ? Do you even know what the function of the block chain is? Every transaction on the net is recorded and can be audited. So much for freedom.
But hey libtards is another name for socialism. And this is what bit users are.
Censorship resistant?
Nope. The block chain that bitcoin uses records every transaction on the ledger and can be audited. This is not freedom this socialism. Try again.
What you are referring to is privacy. Every transaction is recorded – that is a feature, not a bug. It is immutable. Transactions are tied to addresses, not people. So if you want to associate yourself with an address you can, but it is not required.
What I was referring to is censorship resistance. Meaning nobody is able to block or freeze any transaction in any amount. There is no third party like Visa, Mastercard, Paypal, Wells Fargo, etc that can deny a transaction because of your speech or your politics or your controversial “fill in the blank”. The president of the US was just censored across multiple social media accounts. If you don’t understand how this concept of monetary censorship resistance is hugely important, then I can’t help you.
There is a cult of conjecture out there…about many things.
Few more fervent than Bitcoin fans who believe they can see the financial future, but people who are lukewarm, neutral, or some other attitude towards Bitcoin can’t because they are unenlightened or dumb.
And because they are enlightened, their opinions are sacrosanct. Bitcoin can’t be in a bubble now or perhaps ever.
The real truth is only the passage of time will demonstrate what transpires.
Not a single person here can predict the future value of certain classes of financial assets.
Some will come closer than others.
Good luck to all who choose to debate with civil discourse.
Where’s Tom Cloud been? Maybe he can clear all this up.
In the third world, when you want to buy the chicken that lays eggs,will he take apiece of silver, or can you whip out your phone and touch it magically and offer him a piece of bitcoin? Check and mate. Think 3rd world as your new leader will make the rustbelt extend to sea to bankrupt sea.
The turning point for silver this week was Wednesday the 6th. There was also a turning point for the USD this week IMO, it was also Wednesday the 6th. Go have a look at a 30Min chart.
If this is so, we could see some unexpected events occurring sooner than later.
I forgot, on BITCOIN? LMAO!
Yes, RedOpel, it will come like a thief in the night.
Yes, it will come like a thief in the night.
Dollar short squeeze is coming. FED is openly talking about tapering QE. While Biden is promising trillions. Dollar wrecking ball returns. Most people assume trillions in spending will sink the dollar. It matters where the money comes from.