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US Mint Sells Most Physical Gold In Two Years On Same Day Gold Price Hits Five Year Low
Three weeks ago, we reported that the US Mint had run out of physical silver on the same day silver plunged to its lowest price in 2015. This happened just days after the UK Royal mint announced that "during June, we experienced twice the expected demand for Sovereign bullion coins from our customers based in Greece."
While the surge in physical demand clearly did not explain the liquidation in the price of "paper" silver, we are still hoping that the OCC writes us back with an explanation why this happened, and maybe it can clarify also just how much more silver the mint will sell before it runs out of silver in inventory again as it did 20 days ago.
We bring all of this up because just like 20 days ago when unstoppable demand for physical silver met an immovable paper silver selling object (with the "object" for now winning), so earlier today the price of gold tumbled to the lowest level in 5 years, some $1,072 per ounce, before it staged a dramatic comeback closing just under $1,100...
... thanks in no small part to the illegal spoofing we noted earlier.
And lo and behold, just like in the case of silver three weeks ago, today's gold liquidation was not due to selling of physical metal. In fact, quite the contrary: according to the US mint, so far in July the mint has sold a whopping 143,000 ounces of physical gold - the most in over two years, or since April of 2013 - even as the price of gold briefly slid to the lowest level in 5 years.
In other words, retail investors, who have bought over 7 million ounces of gold since January 2008 or the one third the total "held" currently by the GLD ETF, were eagerly buying up all the physical they could get their hands on, or said otherwise, "taking delivery" at the prevailing price, a process which practically assures that the US Mint will be out of gold in the next few days.
We wonder when some central banks, the bulk of whose gold remains in "deliverable" format, decide to do the same? A few more down days in the stock market, coupled with a record high hedge fund short interest, and we just may get our answer.
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So were all the buyers Chinese?
nahhh.....just me i think based on my conversations with my buddies......
Normal lack of Supply and over Demand at work
Talk about lack of normal, there's always Murphy's Law: You wait and wait, but the minute you use the stethoscope to listen to your balls, the doctor walks in.
I've been watching the buyer premium since the smack down in AU... My very unofficial finding is that it has gone up 20% in the last 10 days. Bullish phyzzz.
Same here and for Ag also. Those backdated ASEs held their value pretty well through the smackdown.
Why not just appoint Nanex to supervise the "Markets"? In that way, we could disband the SEC, CFTC etc. and save a shit load of money AND have much better Regulation?
Unless, of course, "Regulation" is not the intended outcome?
What the fuck does the FBI do? Can't they shoot somebody?
If there is so much more paper gold out there would it not be in the best interest of someone with deeeeeep pockets to sell the shit out of their paper drive and down the cost of paper knowing physical would follow in order to buy the real thing at a lower price? just asking
Yes, but the only people who could do that are on the inside and benefitting from free money from The Fed. And the PM market is small potatoes in relation to Derivatives on Forex etc. so it would not be a smart move to piss off The Fed by making just a few Hundred Billion on PM upward manipulation? Sorry but it isn't going to happen.
You know nothing. Less than nothing.
Care to elaborate? And begin, oh I don't know, a discussion (you know, on a discussion board)?
If not, please refrain from posting ever again. You waste space with bullshit comments like this.
knukles
Ain't that the truth!
Sorry for OT folks, but you got to hear this.
Obummer & Mr. Ed have received summons by the Sanhedrin
https://youtu.be/mq6BDdbcXRo
I'll bet they both have prior engagements that they are unable to re-schedule.
but the minute you use the stethoscope to listen to your balls,
Uhhhhhhh, ok.
He's a piker. I rummage the drawers for drugs.
hm, i have to try that.
"No demand to see here, move along people, move along."
The nice thing about physical is it isn't on anyone's database.
When I go to the sellers I buy from and log in all past sales are shown... wouldn't take much for an interested party to determine how much and where.
Of course due to a boating accident and selling ,,,
Gold and silver is common, not rare. You've been duped! There is tons and tons of the cursed stuff.
Mintcoin has you duped brother, enjoy being fleeced - or are you the one fleecing the sheep?
Yeah it was in my area. We've had a big influx of them buying houses to park money in.
Just like the recent down days in Silver; todays price action in Gold was caused by selling of physical metal. As physical as it gets; big bars of real gold. By whom ? By Hedge Funds and ETF's. Why ? People are rather stupid and move in crowds. But try to avoid outright insanity and don't pay any attention to nonsense like this article.
Wow, imagine, people buying gold and storing it. How is that different than the increase in oil surplus? You think it's any different? None of these price dips in gold where the mint sold a lot of gold have preceded a large price increase on the CRIMEX. It's really just chumps buying more gold from those who don't wan it anymore. Clearly there is a massive surplus of gold and the price is going much lower. Ask yourselves where the mint is getting all this gold they keep selling?
Bitcoin
True, gold needs batteries, devices, passwords, encryption, accounts and the internet to be viable too!
Its...perfect ;-)
Shitcoin
I have never had to plug my gold in to make a trade.
IMF, World Bank, BIS, leased, re-re-rehypothcated, weak hands, recycling brokers, sympathetic western regimes, rap artists' grills & bling, leprechauns
chumps buying more is true
I just come on here every few days to say
"buy the fucking dips, keep stacking the phyz bitches"
Please keep suppressing the price, thanks
It's not possible for a manipulator to change the trend of a market; eg. to change a bull market into a bear market"--- Martin Armstrong. Also, very obvious if you actually study the facts of the subject. The prices will reverse and start upward again when it's time for them to do so. Which will be when the "mass mind" is more worried about the Government, and their own futures, than they are about the 6% they thought they were going to make on the Stawk Market.
Don't be naive. It is possible to manipulate markets. It is being done now. And it is being exposed daily.
What you're acctually thanking is the mass stupidity of the human animal; as there is no "manipulator".
Who'd a Thunk?
Well maybe many at ZH.
This a has been a message from your ZH Sponsor.
A lot of people who bought gold on the high side may be buying now to average down?
YEs
I'm buying gold... on credit!
These damned freedom lovers! Will we ever be shed of them!
Try not to lose it in boating accident
Yeah some stupid CC company sent me a card with a $22k limit. Now I just want to time a major PM purchase within a month of a debt jubilee.
You're a mind reader?
I gotta feelin' we, or at least I, won't qualify for the jewbull-e.
They want to drop the price using credit? We bring it back up using their own credit. In the end, their vaults will be empty and full of Matrix digits only they can see.
So wait a minute. It's not a Giffen Good?
Warren tried to substitute tungsten but couldn't find a buyer.
Nobody ever talks about his shitty silver trade when he dumped the whole lot of it for almost nothing (to SLV).
Charlie Munger must have had his dick up Uncle Warrens ass then...
Price elasticity really is a thing. Something the MMT guys and TPTB seem to ignore when they manipulate shit.
I will take 2 oZ troy for 750 ml of Pappy 23
James Dimon has our back, he won't ever let prices rise!
Thanks James!
:)
Soros and the other communists loading up before they bring it down
Obviously, paper transactions (including paper currency, paper gold and paper silver) are "deferred exchanges." Those who made the promises are hoping to DEFER the current owners of those promises from ever completing their exchanges. Just like what's happening in Greece and Puerto Rico at the moment, they "extend and pretend" so they never have to write-down the uncompleted exchanges. Physical gold and silver is done-deal; no deferred exchange. You get to decide which you'd rather hold in your hand. None of my business.
Question for the PM holders: why do people buy pm coinage from the mints instead of say, gold dust or silver pellets?
Verifiable authenticity, and purity.
I buy second hand gold jewelry at ludicrously tiny prices...
That makes sense to me. After all, what's the full faith and credit of the United States worth?
Everyone in the business knows an ASE. You bring them dust or shot they need to test and drill it to make sure. Coins carry premiums for this reason since they are much more liquid and recognizable then bullion shot.
If you're going to invest in gold or silver do yourself a favor and buy recognizable coins versus random stuff like shot or dust.
I buy 100 oz Johnson Matthey bars. They carry a very low premium which means you can take more silver off the table with the same amount of money. The bullshit "markets" don't end until we take all the silver off the table. Why give the US Mint a cut along the way? I do agree with HPC about having known quality and recognizable silver, but the 100 oz bar from JM certainly fits the bill. I have sold bars in the past to various online dealers (Tulving was one!) and there ain't nothing easier. Nobody gives a shit about the year, condition, mint, etc. It is 100 ounces of precious, no more, no less.
The only problem I could see is if a desperate CONgress were to slap a tax on bullion trading sometime in the future. That would make legal tender coins more valuable.
Something like this;
http://en.wikipedia.org/wiki/Windfall_profits_tax
Yeah only downside to the 100oz bar is moving it around is a beast. I do 10oz bars for now, easier to move em. But glad to know they sell easy ! Stack high!
100 oz times $150. = $15,000. What are you going to trade it for? A Cadillac?
You need to think big: When the reset comes and we get back to real markets again, it won't take many 100 oz. silver bars to invest in a second home. Or two.
What I think about is how silver coin will actually be used in the future. Who would be able to afford my 100 oz. bars when they are worth $50,000. What if I only want to buy Buddy's cow for 2 silver ounces and he hasn't got change for a hundy-bar? So I haven't actually bought any 100 oz. bars, but have instead bought CDN Maples by the hundreds. The extra premium for singles is so darned small that I'd rather sacrifice a few ounces today for convenience and added safety later. Safety in that you can carry around only as much of the good stuff as you need... in an era when it is very valuable.
Mind you, there's also nothing wrong with 100 oz. bars. They're gorgeous and they feel damned good in your hands. I don't buy the argument though that you can transport more wealth more easily if you have larger bars. Nonsense, a monster box with 500 coins in it is only the size of a football. 5 oz. and 10 oz. bars are fabulous.
Question for the PM holders: why do people buy pm coinage from the mints instead of say, gold dust or silver pellets?
I only buy Turd Rounds!
Question for the PM holders: why do people buy pm coinage from the mints instead of say, gold dust or silver pellets?
In some jurisdictions there are tax advantages.
Eg. In the UK, if you buy 1oz Britannia gold coins (same thing as a Krugerrand, or Maple), it is tax free in every way. No VAT and no capital gains tax, because it is officially a £100 coin.
If you buy a Krugerrand in the UK as a UK resident, it is the identical amount of gold, and is still VAT exempt, but it is subject to capital gains. The same goes for simple bullion ... so Britannia coins have an advantage.
And just to show how illogical tax treatment is. The same law (currency act) applies to Silver coins, BUT the tax office (HMRC) has arbitrarily decided to demand VAT - even though that is not legal under the currency act. .... so much for rule of law.
Silver is free of VAT in Belgium.
It is ironic, isn't it? Many of those who advocate free-markets and honest money and who reject the state's legitimacy do an about face and place more value on the state's coins! Because a coin is minted by the US government or any other government, doesn't lend it more credibility. In fact, it’s just the opposite. I'm probably going to start buying private mint coins from now on.
Hammering the price relentlessly down with derivatives, while simultaneously scooping up the physical from the mint makes one wonder if the linked video has some credence.
https://youtu.be/4FeXUvEFanU
When something is on sale, you expect more sales, duh. Just say thank you. Ungrateful bastards.
If you had a store selling widgets that you manufactured and they were selling much faster than you could make them, would you raise the price or lower it?
Folks are buying too soon It will get cheaper.
I dunno? We've entered Crazy Land. Paper price continues to go down but the phyzzzz premiums continue to spike. No guarantees you will be able to get silver coinage any cheaper no matter if the paper spot price is $18 or $8. Desirable coined silver seems to have bottomed no matter what the spot price does from this point forward.
No, it looks like the bottom is in on silver. Monday this week the premium on private silver coins was 6.5% ... as of tonight 13.39%.
I agree with Uncle Vito. There is a incredible broad based deflationary push developing and it is definitely starting to accelerate. Deflationary events are the worst nightmare for the global banking cartel because deflation is the only thing they literally can not stop once it gets rolling. Deflation absolutely horrifies banks and we haven't really even seen the deflationary effects of the first (next) huge default. There are a lot more Greeces lined up and they are 10 times the size of the original. Just wait until one of those babies collapses.
Mind you, the Troika has demonstrated how vicious they are, essentially going so far as to offer Varoufakis the option of either committing suicide or being executed. And the reason for that? Their absolute horror at the very tought of deflation. In the most serious of terms... they literally could not afford for Greece not to take on more loans. But neither choice was particularly palatable so Greece opted to bend over and just take on more debt, Greek style, right up the ass. Against their will. That my friends, is rape. Perhaps France or Italy will accept the same fate... a royal buggering. In that case, the can just gets kicked further and their ultimate certain death is only delayed.
At some point though, as this deflationary event becomes plainly obvious, such as in the crash of oil prices, a collapse in real estate pricing, etc., the Fed will absolutely panic and start printing in multiples of what we have seen in the past. They keep talking about raising rates. They are NEVER going to raise rates. They literally can't. If they do, the entire world of institutional banking will implode. This is not conjecture... they will literally collapse... worldwide. It's just math.
So at some point gold is going to hit $10,000, no question about it. But I don't think the bottom is in just yet. The deflationary trend is just getting started and we haven't yet seen anything that would justify the bankers setting off another printing bomb. What would such a catalyst look like? Well for one thing, it could take the form of a stock market crash. When they see that they will hit contol P like never before. It will blow your mind... and it might not even work. But when you see the stock market take a horrifying hit... when you see them start talking about more QE... that's the time to back up the truck. And load it with silver... not gold. With the gold ratio currently sitting at 75:1 when it historically averaged about 15:1, why not make your profits in metals 5 times as big?
Totally agree that the math doesn't allow for raising rates, but do you not think there is some creedence in the idea that the crash-bang-wallop, which seems inevitable at this point, is all planned anyway? and therefore raising rates to facilitate this ruinantion is the ideal catalyst. I don't think a recession/ depression/ stock market crash will really hurt the 1%, in fact, by the looks of things, they are currently positioning themselves for just that eventuality (cornering commodity derivs mkt, reducing equity positions off this high). Economics as we know it is a thing of the past, it's all a sham now, & this is why (crazy & un-doable as it seems) I think rate rises could well happen. Absolutely nothing surprises me now to be honest, Fuckit, why not raise rates, intro more QE, then go negative 1% on rates; the US & world economies are like a loose horse at this stage, it's an absolute circus.
So you are saying there won't be QE4, and gold (and fear) won't bounce months before that becomes obvious. I don't think so.
Send in the clowns...and the ZH gold trolls.
Hee Hee Banksters we're going to be there when hunting season opens.
If it contiues to trend down it is still cheap today. Can you mine it cheaper than the spot price?
There are still mines operating in the $400/oz range. It's the new mines that have the high costs. The new mines were chasing lower grade ore and higher operating costs when the gold price was high.
maybe (selling gold) = (interest rates rise) ?
my second guess is banksters know that China crash is imminent (and Chinese will be selling gold in crowds)
US Mint is not just randomly choosing to dump, those are actual customer demand orders they are filling. At the current price it is moving and moving at record pace.
ok, thanks for explanation
A few more down days in the stock market, coupled with a record high hedge fund short interest, and we just may get our answer.
"That" and Dry Powder.
"the Fed will absolutely panic and start printing in multiples of what we have seen in the past. They keep talking about raising rates. They are NEVER going to raise rates." --albertarocks
My thinking as well. Although with pension funds and insurance co's swirling around the toilet bowl, the Fed can't NOT raise interest rates, either, so they're stuck between Scylla and Charybdis and have no way to go forward or backward.
As for gold hitting $10,000, I think it equally possible that it will first go to zero as deflationary forces hit full force. But you won't be able to buy any at that price, obviously.
And then it will go to $100,000. and $500,000. And again, you won't be able to buy any then, either. You will only be able to trade for it. As in: shotgun shells, food, water, shelter, fuels...
God help us all when that happens.
But you will be able to buy shares in debt free low AISC gold mines, people who do will be, well, sitting on a gold mine.
It's always best to sell gold when the price hits rock bottom.
Ask Gordoom Brown, he knows.
Regrettably, the quantities of coins purchased are not indicative of the trends in the gold market because it represents a very small portion of the annual supply.
It's not cheap yet.
They are going to want to punish people for buying the dip and show them they made the wrong call by taking it down further.
Goldman previously called $1050, and recently revised that to $1000.
Well that's less of a call imo and more of target to hit.
Anyone who thinks gold will soon bounce will keep buying as he has been doing in recent years.
If there's a 50% or higher upside wtf would I want to wait to get an extra 5 or 10% discount. I am buying now and I will keep buying later.
Gold will break $1000 down to $850 so don't go all in on this dip. When everyone has thrown in the towel on gold, it will be time to buy. The gold hustlers will tell you this is the low. Don't listen and be patient. Good things come to those that wait.
Going to be a massive short squeeze
But the premiums just go up as the paper price drops. There isn't much gain to be had by waiting.
At this point price manipulation downward is nothing more than a big flashing advertising sign that says BUY BUY BUY. TPTB are idiots.
TBTF, when the fed goes BK having soaked up all the bad debt..congress will kill the fed. debt is then null and void..that is the card they keep off the table..welcome back treasury Notes maybe even silver & gold certs will be printed ..some big players get hosed but the game can then go on..
Sounds like the big money is selling and retail shmucks are buying, at a huge premium (which they apparently think is a GOOD thing, lol).
Hmmm wonder who's right?
YeeeeHaaaaa thems banksters sure are stupid.
Confidence in the federal government is nil.
Well, duh, they are employees of the government aka "the dumbest people in society." If they had any brains they'd have a job.