Wednesday, September 2, 2015

US Mint Coin Sales Soar

The US mint set very healthy year over year sales increases in August.
According to the latest data on the mint’s website, sales of the American Eagle Bullion gold coin amounted to 101,500 ounces last month. ... Year-over-year, coin sales rose 306% when compared to the 25,000 ounces sold in August 2014.
The mint reported American Eagle silver one-ounce coin sales of 4.935 million ounces, more than double the 2.088 million ounces sold during the same month last year.
But everyone knows gold is doomed, right?   Hey, that's the Washington Post!  Who are we to question?  I'd say that apparently whoever they were that bought three times more gold in August 2015 than 2014 thinks it's alright to question the WaPo.  Likewise, a substantial number of people seem inclined to agree with Jim Sinclair's observation that "Silver Will be Gold on Steroids" in what he sees as the coming rally.  (You might recall me asking "Is the Next Bull Market in Precious Metals Starting?" about a month ago). 

Sinclair believes that in the coming economic collapse/massive corrections that " is going to levels that today are considered more mental illness than monetary analysis."
Renowned gold expert Jim Sinclair stands by his prediction last year of an eventual gold price of $50,000 per ounce. Sinclair explains, “You have to understand we are going into unprecedented deflation, and it’s the reaction of central banks around the world to the concept of deflation that brings about hyperinflation. . . . There will be debt monetization of all kinds of debt to maintain some sort of equilibrium. The price of gold is going to go to a level that is going to surprise everybody. I was told that this is a rally that you won’t sell. That means gold will go to a level and not react violently down from that level. . . . This is when gold is going to levels that today are considered more mental illness than monetary analysis. Silver is best understood as gold on steroids because whatever potential and direction is taken up by gold, silver will be multiplied by 2 or by 5. . . .Silver will outperform gold.”
"May you live in interesting times"?
 That's a good start...


  1. Some friends and I have been steadily purchasing silver over the last few months. It's often frustrating when you look at the spot price as compared to the actual Asked and Bid prices in the open market. We continue to search out and take advantage of distress level opportunities. Unfortunately for all of society we are finding more and more distress selling as our economy swirls down the toilet and once strong viable businesses or professions are succumbing to the economic realities and not the PR generated praises of a robust economy. Especially hurt by the modern economics are General Practice Physicians who are either in need of cash to keep their practices afloat or are saying screw it and closing their practices.

  2. "May you live in interesting times"
    My parents lived through the great depression and in fact got married in 1933. My grandfather dabbled in stocks then and growing up there was a box of old stock certificates that we kids would play with. He could have been a millionaire or the stocks could have gone down even without the depression. But those were interesting time, 12 years more or less of interesting times. Then there was Pearl Harbor and 4 years of war. My mother would remind me that when the war began the U.S. was at a disadvantage and no one knew we would win. Then of course Vietnam, far more serious to those who went and their families but still interesting times. And 9/11, etc.
    I do feel that the world has turned over the last 10-20 years. The terrorist/radical muslim threat is changing the world and threats. Our own politician's incompetence has placed us on track for another great depression or worse. We do live in interesting times and I cannot lose that nagging feeling that it is about to get dramatically more interesting.

  3. Gold and silver look cheap, and safe, but so do lead and brass in popular calibers. Solar panels look affordable and useful, too.

    I see precious metals as what you do with money you don't have any other use for. It's probably good to have 5 to 10% of your capital in precious metals, but don't overlook things that you can actually use.

  4. I agree with Unknow. Solar panels and ammo seem safer bets to me ... both of them have really long shelf lives and are not nearly so speculative.

    Watching my 401k turn from 6% rate of return to negative 3% rate of return has definitely put me in a mood not to invest in less tangibles.

  5. Besides ammo buy "junk silver" -- pre-1965 US silver coins. They are 90% silver (pre 1920 was 92.5%). When bartering is the way of commerce when SHTF the coins will be almost a standard currency people will soon learn to appreciate.

    Their are a ton of items that will be good for barter. Just take the time to consider what won't be available in stores (because no stores will exist) but will be almost invaluable to have for use -- i.e., lighters, matches, etc.

    But individual silver coins will soon be recognized as a fairly standard value to barter/buy with. 1 oz silver units will also be readily useful. Larger unites, and gold, will be used for larger transactions.

  6. Agree with David up top.
    Buying physical silver ain't easy these days.