"Unprecedented Demand" - US Mint Sells Nearly As Much Gold On First Day Of 2016 As All Of January 2015

Tyler Durden's picture

While Chinese residents were lining up in front of banks and currency exchange kiosks, desperate to convert as many of their Yuan into dollars as the government will permit, Americans were likewise busy exchanging their own paper currency, so greatly in demand in China, into gold and silver.

As Reuters reports, American Eagle silver coin sales jumped on Monday after the U.S. Mint said it set the first weekly allocation of 2016 at 4 million ounces, roughly four times the amount rationed in the last five months of 2015, after a surge in demand. It will not be enough.

According to the Mint, more than half of the week's allocation of silver sold on Monday, the first day of 2016 sales, a sign that demand entering 2016 is literally off the charts.

Putting the silver demand in context, the 2.76 million ounces of silver bullion coins sold today is exactly half of the 5.53 million ounces that sold in all of January 2015.

Needless to say, if the demand from the first day of the month continues through the end of January, the first month of 2016 will set an all time record in silver sales.

And gold.

First-day sales of American Eagle gold bullion coins was also unprecedented, with the 60,000 ounces sold equal to roughly 75% of the 81,000 that sold in the entire month of January 2015.

As reported previously, the mint ran out of American Eagle silver coins in July because of a "significant" increase in demand as spot silver prices fell to a six-year low. Inventory was replenished in August and sales resumed. But the coins were on weekly allocations of roughly 1 million ounces for the rest of the year because of low supplies.

This dramatic surge in demand, we noted out at the time, was a shock and a paradox to equity investors and momentum stock chasers, who seek to dump an asset the cheaper it gets, contrary to what has happened with physical metals for the 4th year in a row. It is amazing that at least some investors still act according to the fundamental laws of supply and demand.

It wasn't just the US: the unexpected surge in demand put the global silver-coin market in an unprecedented supply squeeze, forcing other mints around the world to ration sales, while U.S. buyers had to look abroad for supplies.

Should the epic demand for precious metals from the first day of sales persist, we are confident that the Mint will run out of gold and silver within a few days.

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Hitlery_4_Dictator's picture

Things are clearly not going well.

nope-1004's picture

Yup, trust in .gov is slipping.  Yes price of PM's is attractive, but the confidence in .gov is even worse and these sales reflect that reality.

 

Baby Bladeface's picture

For Chineses at least government them encouraged since several years now gold to buy. Never from US government that recommendation to hear.

TeamDepends's picture

Relic Barbarians of the world, unite and take over!

Four chan's picture

"massive demand drives gold prices lower." 

StychoKiller's picture

Whoa, at this rate, the Mint workers are gonna go on strike, to make less money!

Hitlery_4_Dictator's picture

Everyone needs to watch this NOW: https://www.youtube.com/watch?v=gcACvjXuclA&spfreload=10

 

One of the most powerful videos ever done. If you don't like the music press mute, but watch it.

db51's picture

I had t look away when that Cunt Miley Cyrus's skanky cunt ass kept showing up.

Hitlery_4_Dictator's picture

I did find it amusing that when they said "insane" a pic of Obama showed up at that exact moment. Not a coincidence. 

USisCorrupt's picture

Earlier in the week it was raised to 350 to 1.

g'kar's picture

great video and music. everytime i saw obola's smiling face it reminded me of the movie "Legend":

 

https://www.youtube.com/watch?v=6ZL3ofreuQo

northern vigor's picture

The producer has a fascination for Rob Ford in that video...Funny thing about the former Toronto mayor, on his worse days of being out of control with his addictions, he was a better manager than his replacement,  and the rest of city council. That's the sad symbolism in that video.

 

FIAT CON's picture

I agree, meanwhile the sheeple just think things are rosey, cause the gubmint and msm say so....

So the sheep willl be driven over the cliff and they will wonder what happened.

TheBoyPlunger's picture

So we'll probably see a PM smackdown soon since we all know that PM's operate in the bizarro world where higher demand and dwindling supplies lead to LOWER prices.

FIAT CON's picture

Nothing has changed, It remains the same as back in _____ when 7 countries agreed to hold the price of gold at $35/oz and if it ever rose above that they all sold gold to drive the price back under $35/oz. As they all said we cannot lose the control of the gold price at all costs.

Remember that last thing gov's ever want sheeple to figure out is that gold /silver are money and paper is paper!

 This is how they control us is with PAPER. 

wizteknet's picture

Things are surely going as planned...

Durrmockracy's picture

There is no fiat "price" for silver.  Silver should be the denominator, not the numerator.  Silver will be worthless and then immediately priceless to most dunderheads.

38BWD22's picture

 

 

No, things are not going well on Planet Earth.

Gold, fishez!

Number 9's picture

"'They will throw their silver into the streets, and their gold will be treated as a thing unclean. Their silver and gold will not be able to deliver them in the day of the LORD's wrath. It will not satisfy their hunger or fill their stomachs, for it has caused them to stumble into sin.

 

Better become a goat herder..

Hitlery_4_Dictator's picture

Can't argue with that, still it's better than US dollars at the very least. Look up for your redemption draws near. 

nope-1004's picture

I can argue with his posting of Ezekial 9:17, because it's totally out of context.  For starters, the actualy physical metal became the object of idolatry back then during the time that this verse refers to.  Also, the idolatry of gold and silver back then, which was real money, is absolutely no different than todays idolatry of a large home, line of credit, credit card debt, or going shopping when depressed.  They are both signs of a gross misallocation of the proper use of money.

Gold and silver, if misused like credit today, can obviously be sinful.  But context needs to be properly disclosed.

 

Number 9's picture

You are missing one important aspect, you cant eat it. THAT is the underlying message,

nope-1004's picture

Which, taken in todays context, means the same thing as a massive mortgage on a home, credit card debt, and student loans:  They won't fill your stomach!

I totally agree with you.

Number 9's picture

When JIT inventory breaks, and you are down to your last can of bennie weenies and there is no more to be had anywhere, how many gold coins you going to take for it?

FIAT CON's picture

You do have a point, although you have to be put exactly in that prdicament before your statement becomes true.

I am not going to go out and buy 10,000 cans of weennie, in exchange for my gold...

when TSHTF I will have a lot more of everything than most,  silver, gold, food and lead.

and if and when it recovers I will be able to trade gold/silver for the better quality foods.

Number 9's picture

If you have to cut and run, which do you take?

Panafrican Funktron Robot's picture

"When JIT inventory breaks, and you are down to your last can of bennie weenies and there is no more to be had anywhere, how many gold coins you going to take for it?"

Not a reasonable base case, and in this highly unlikely scenario, gold would have at least some value vs. digits in a bank ledger.  

Base case reasoning for gold ownership is as a store of value that is currency/counterparty independent.  Consider MF Global, Cyprus, etc.  That doesn't mean 100% gold, but anywhere from 10% - 33% of total assets is a pretty standard recommendation for the HNW group.  There's a reason the major banking centers just so happen to have a very large concentration of gold (at least allegedly).

Agstacker's picture

You can't eat your car either, doesn't make it worthless.

db51's picture

It does if the only thing you are concerned about is hunger.   Evan an S Class MB wouldn't buy a cheeseburger.

kiwimail's picture

But an S Class MB is better to live in than a Ford Pinto!

Number 9's picture

If there is no gas available anywhere for any amount?  Makes for one good bonfire.

lakecity55's picture

Brew up some alcohol for fuel.

northern vigor's picture

You cannot eat gold but in a situation it will grease the palms of the people who will allow you to live another day. 

If  you have a field of cattle on pasture, or several bins of grain in the yard, you better have some  lead and gold too. Those cows and grain bins are like a flashing Big Boy sign to the hungry mobs.

Hitlery_4_Dictator's picture

Of course, money is NOT the root of evil but the LOVE of money is. Do not worship money in any form, including Credit or big homes or G&S. The message is TRUE, money will not save you in the end. We are rapidly closing in on it. Repent before you can not.

38BWD22's picture

 

 

^^^

Good discussion above of what's really important.  Yes, the soul is most important of all.  Repenting is proper and should be No. One.

*   *   *

The advantage of holding gold is that your wealth is preserved, at least in the context that any wealth can be.  It won't save your soul, but it will save your wealth.

Number 9's picture

Again I tell you, it is easier for a camel to go through the eye of a needle than for someone who is rich to enter the kingdom of God.”

 

Now why do you think that is?

db51's picture

The interpretation that seems to make sense is this. The "Eye of the Needle" was indeed a narrow gateway into Jerusalem. Since camels were heavily loaded with goods and riders, they would need to be un-loaded in order to pass through. Therefore, the analogy is that a rich man would have to similarly unload his material possessions and bow down to get through the gate.   

38BWD22's picture

 

 

Yep.  Emmet Fox is one who wrote of that way of looking at it.  

A narrow and low gate is more defensible for a city.

Number 9's picture

Seriously, the goat herders of Afghanistan can live through any kind of economic crash imaginable.

 

Unfortunately for us, we cant graze our goats just anywhere because we are not as free as the Afghani.

 

Let that sink in a bit.

bookofenoch's picture

I noticed the same thing when I lived there: they are way more resilient than we are

Number 9's picture

That's what I am trying to convey here. Better figure out a way to keep food on the table when the wal mart parking lot becomes the killing fields.

db51's picture

erse 19. - They shall cast their silver, etc. The words remind us of Isaiah 2:20 and Isaiah 30:22, with the difference that here it is the silver and gold as such, and not the idols made of them, that are to be flung away. They had made the actual metal their idol, and their confidence in it should be powerless to deliver them (Zephaniah 1:18). Their gold shall be removed; better, with the Revised Version, as an unclean thing. The word implies the kind of impurity of Ezekiel 18:6;Ezekiel 22:10Ezekiel 36:17Isaiah 30:22. Instead of gloating, as they had done, over their money, men should shrink from it, as though its very touch brought pollution. The Vulgate gives in sterquilinium, "to the dunghill." They shall not satisfy their souls. In the horrors of the siege, with everything at famine prices (2 Kings 6:25), and little or nothing to be had for them, their money would not stop the cravings of hunger. It is characteristic that he applies to riches as such the very same epithet, stumbling block of their iniquity, as he had applied before (Ezekiel 3:20) to actual idolatry (comp. Colossians 3:5). 

 

db51's picture

I've got 15K bushels of wheat, 100K Corn and 15K soybeans in storage....might not be gold, but not sure what it would be like having to eat that stuff every day..without running it through a four legged creature.

FIAT CON's picture

You had better keep moisture  and rodents out of it, or it will be worthless, even more worthless than gold in an event.

Hitlery_4_Dictator's picture

Not sure how anyone can red arrow biblical verses - read Revelation and tell me it's not coming true. You won't be able to.

db51's picture

King James 2000 Bible
And there was a great famine in Samaria: and, behold, they besieged it, until a donkey's head was sold for fourscore pieces of silver, and the fourth part of a kab of dove's dung for five pieces of silver.

 

Think about that   a donkey's head for 80 pieces of silver.    That's what you call desperation.   Doves's dung?   Holy crap....what was that, an appetizer?

Bagbalm's picture

Ever hear of bird's nest soup?

 

StychoKiller's picture

The bird's nests in question are made from the bird's saliva, not dung.

bookofenoch's picture

Reading book of Amos right now. Big mind bender. Chapter2&3 spoke of freaky sex weirdos and those who hoard great wealth, with multiple homes, while people starve.

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