4 Interesting Developments In The Gold & Silver Markets

Tyler Durden's picture

Authored by Steve St.Angelo via SRSroccoReport.com,

There are four interesting developments taking place in the gold and silver market that precious metals investors should be aware of.  While Americans continue to place all the bets in the casino called Wall Street, via stocks, bonds and real estate, the Easthas been acquiring record amounts of gold and silver.  Furthermore, something interesting seems to have changed recently in the Silver Eagle sales market.

FIRST DEVELOPMENT: Let’s start off with showing the stunning amount of silver India imported in May.  According to Smaulgld.com, India imported nearly 2,000% more silver in May 2017 vs May 2016:

Matter-a-fact, India imported nearly the same amount of silver in May, than they received from January-April.  Also, we can see that May’s 1,473 metric tons of silver imports is 2-4 times more than any of the prior months.  Something has inspired the Indians to import that much silver this past May.

SECOND DEVELOPMENT: India also imported a record amount of gold in May:

According to Smaulgld’s article, INDIAN GOLD IMPORTS ON RECORD PACE IN 2017:

Indian gold imports of 220 tons in May were up from 36 tons in May 2016.

 

May Indian Gold Imports were the largest one month total in twenty years.

 

The impact of 220 tons imported into India on the price of gold was de minimus

So, for some reason, India’s gold and silver imports surged in May.  It will be interesting to see what their figures are for June and July.  Please check out the Smaulgld.com site run by Louis Cammarosano.  He does an excellent job covering updates on the Gold and Silver Market.

UPDATE:  Louis contacted me and let me know that there was a bit of mix up with the data for May in the Indian Gold and Silver imports.  His data provider, Sharelynx.com run by Nick Laird mistakenly added April’s figures into May.  Louis sent me two updates to correct the issue.

UPDATE July 12, 2017: A review of provisional June Indian gold import numbers highlighted a discrepency in the May gold numbers. I contacted the data provider and discovered that May import numbers reflected combined April and May imports. The actual May Indian gold import number was 123.694 tons. Gold imports were up 244% in May from 36 tons in May 2016. The provisional June Indian gold import number is 72 tons. Charts will be revised in June’s update.

UPDATE July 12, 2017: After confirming an error in the Indian May gold import numbers, I contacted the data provider to determine if an error had also been made in calculating the May Indian silver numbers. Indeed, the May Indian silver import numbers reflected combined April and May imports. The actual May Indian silver import number was 819.132 tons. Silver imports were up 1,022% in May from 73 tons in May 2016. Indian Imports of 26,335,705 ounces of silver in May were nearly 2X higher than 13,523,500 million American Silver Eagles sold through July 12, 2017. Charts will be revised in June’s update.

I apologize for the error in the figures, but I knew that Smaulgld was getting them from Sharelynx.com, so I didn’t question them. I had have used Sharelynx’s charts and data before. Even Goldcore published the same data in their article, India Gold Imports Surge – First Half 2017 Higher Than All 2016

Regardless…. the actual figures are still much higher than the same month last year suggesting that the Indians are indeed ramping up gold and silver purchases.

THIRD DEVELOPMENT:  Silver Eagle sales have surged in the first two weeks of July.  According to the most recently released U.S. Mint data, Silver Eagle sales as of July 12th, are 1,290,000 versus 960,000 for the entire month of June:

At this pace, the U.S. Mint might sell over 2.5 million Silver Eagles in July.  This recent increase in precious metals buying in Asian and in the U.S. may be an indicator showing that something may be seriously wrong in the markets.  Furthermore, several analysts are forecasting that the stock market is RIPE for a huge correction starting this fall.

It seems like investors are taking advantage of lower silver prices as well as buying more metal due to fear that we may indeed experience a large Stock market correction this fall.  Those who think the price of gold and silver are going to fall lower along with the Dow Jones and S&P 500, haven’t been awake for the past four years.  Gold and silver have already sold off considerably, and are now close to the COST OF PRODUCTION.  However, the Dow Jones and S&P 500 P/E Ratios are in bubble territory.

FOURTH DEVELOPMENT:  It looks like a SHAREHOLDER CLASS ACTION LAWSUIT is now being filed against Tahoe Resources:

RADNOR, Pa., July 12, 2017 /PRNewswire/ — The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against Tahoe Resources, Inc. (NYSE: TAHO; TSX: THO) (“Tahoe” or the “Company”) on behalf of purchasers of the Company’s securities between April 3, 2013 and July 5, 2017, inclusive (the “Class Period”).

 

Investors who purchased Tahoe securities during the Class Period may, no later than September 5, 2017, seek to be appointed as a lead plaintiff representative of the class.  For additional information or to learn how to participate in this action please visit www.ktmc.com/new-cases/tahoe-resources-inc#join.

 

The complaint alleges that, on July 5, 2017, after the market closed, Tahoe issued a press release announcing the suspension of the Escobal mining license.  The press release stated, in part, “the Supreme Court of Guatemala has issued a provisional decision in respect of an action brought by the anti-mining organization, CALAS, against Guatemala’s Ministry of Energy and Mines (“MEM”). The action alleges that MEM violated the Xinca Indigenous people’s right of consultation in advance of granting the Escobal mining license to Tahoe’s Guatemalan subsidiary, Minera San Rafael.”

 

Following this news, the stock price declined from a close of $8.27 per share of Tahoe stock on July 5, 2017, to a close of $5.56 per share on July 6, 2017, a drop of approximately 33%.

 

The complaint alleges that, throughout the Class Period, the defendants failed to disclose that: (1) Tahoe’s exploitation license of the Escobal mine assets was in violation of the indigenous people’s rights to be consulted; (2) Tahoe was not in compliance with governmental law and regulations; and (3) as a result of the foregoing, the defendants’ statements about Tahoe’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

As I mentioned in my article, WORLD’S 2ND LARGEST SILVER MINE SHUT DOWN: Implications For Company & Market:

As we can see, the disinvestment of Tahoe Resources by two large European Funds should be a WARNING to investors that things may not be ROSEY for the company going forward. 

Please understand, I am not only painting a negative picture for Tahoe, but rather providing additional information that seems to be missing from the Mainstream press.  Thus, investors are making decisions without the COMPLETE information or story.

Some readers were quite upset with me for providing the OTHERSIDE of the STORY on Tahoe Resources.  However, my intent wasn’t to put out a negative opinion of the company, rather it was to provide information that most investor likely do not know about as it pertains to Tahoe’s Escobal Mine.

With this new class-action lawsuit against Tahoe Resources based on possibly misleading and misrepresenting investors of the problems and issues with the Escobal Mine.  Individuals and shareholders need to learn more about what is going on at the Escobal Mine so they can make better decisions about future investments in the company

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RawPawg's picture

Keep Stac

oh,wait...Y'all already know what y'all should be doing

Stay Prepared,My Friends

troubadourcapital's picture

There's a solid long term bullish case for gold. Inflation is coming as the labor market tightens, and the USD is falling right now

http://bearmarket.net/our-sister-fund-is-extremely-bullish-on-gold-silver/

Give Me Some Truth's picture

The USD HAS been falling recently. This "should" mean prices of precious metals in dollar terms are going up. Of course, gold and especially silver have been hammered as the dollar has been going down. Silver declined 7 percent last week on no news that should have caused silver to fall by even .07 percent.

The more brazen the manipulation/rigging in the monetary metals becomes the more convinced I become that s/thing big is happening behind the curtain. Yes, be prepared.

realmoney2015's picture

Gold and silver always hold their value. I don't buy for short term gains, although those can be had just as in any market. I buy gold and silver because I know that'll I always have something to show for my 'investment'. It's not really an investment, preserving wealth. They are realmoney. 

Right now, you can win a 1oz American Gold Eagle just by buying a candle with a real silver coin. www.scentsaverscandles.com. 

What's better than having gold and silver in the long haul? 

tmosley's picture

UPDATE: My data made me bullish on gold and silver, and when my data changed I remained bullish on gold and silver because I am a sophist disguised as an analyist.

stacking12321's picture

why the sarcastic attitude towards srs rocco?

he fessed up to the error, put forward an update, and set the record straight. as well as saying the conclusion is still supported, but not to the same extent.

how is that sophistry?

tmosley's picture

When you start with a conclusion, and hold to it no matter the data, you're not going to have a good time.

This is what I did for three years too long, during which time I missed several chances to turn my losses into million dollar fortunes. This is what gold and silverbugs continue to do.

An agonizing reappraisal of the virtue of gold and silver versus crypto in regards to their usefullness as money is warrented. But no-one wants to do it. They would rather attack those calling on them to do a hard thing for their own benefit, and tell lies in the vain hope that their investments will come back even after one of the largest and most vital underpinnings of the bull case has disappeared--gone to crypto.

daveO's picture

Crypto's look a lot like IPO's 20 years age, a lot of fast trading. In a few years, there will probably be several thousand of them, just like the NASDAQ. Trade 'em while they're hot!

tmosley's picture

You should go back further in history. They look a lot more like property prices in the midwest.

Of course, people don't talk so much about those, as they had a slow, steady rise, punctuated by huge gains and crashes as waves of immigrants showed up, and sometimes failed and went back.

I_rikey_lice's picture

Property can't be created out of thin air. Cryptos can be created to infinity. Ridiculous comparison.

You suffer from cognitive dissonance. 

stacking12321's picture

@tmosley

"When you start with a conclusion, and hold to it no matter the data, you're not going to have a good time.

This is what I did for three years too long, during which time I missed several chances to turn my losses into million dollar fortunes. This is what gold and silverbugs continue to do."

 

i would suggest to you, that the reason you're "not having a good time" is that you're stuck in the dollar paradigm, you're allowing the CRIMEX to tell you what silver is worth, you're believing their propaganda that you LOST money, when in fact if you bought an ounce of silver, it is still an ounce of silver. their psy-op is working on you, as it was intended to.

you want validation, you want "the market" to agree with you, and are frustrated that it's not.

well, the reasons i was buying silver for years is as true now as ever, even more so.

sovereign debt is higher than ever, ore grades are falling, and once the shale oil fiasco is done playing out, the cost to mine silver will be much higher.

i'm qute pleased to be holding silver right now, it is a tremendous bargain.

and also happy that i put a few % of my wealth into bitcoin a few years ago, as well.

it's not either-or.

 

Stuck on Zero's picture

Rickards claims that it is now very difficult to obtain physical gold in quantity. Any truth to that? Grasham's Law and all that...

tmosley's picture

100% BS or there wouldn't be any kilo bars available. If the premiums were as high as moonbats like Jim Willie claim (30+%), then there would be NO gold available ANYWHERE as it would all be bought up and all be in queue at the refiners. And there would be no shortage of refiner capacity, because they have claimed this shit has been going on for a half a decade--they would have expanded their fucking capacity to meet demand by now. But they haven't.

It's all a bunch of fucking lies.

ExplodingEntropy's picture

You are correct if the purchase was publically known, but as per senior Willie's unverifiable claim, it was a private deal. Perhaps the big fish find it logistically impossible to acquire tonnage in secret, thus a 30% blackmarket premium ?

 

But there is no need to be all in on any one thing. Ag and diverse cryptos is a fine strategy because picking the wrong cryptos cripples

tmosley's picture

The thing is, kilos add up to tonnes. If tonnes made such a huge amount of money for the seller, there would be no kilos available. There would be no ounces. Maybe some grams that exist at a premium that is too high to be profitable after smelting.

But that is not the case. You can buy a tonne of gold off of APMEX TODAY. If the buyer demands kilo bars, you just have to smelt them. You would make MILLIONS off of the transaction. But no-body does, because the premium at volume is a fucking lie.

Doug Eberhardt's picture

Rickards is FOS. I just got clearance for $10 million of gold bars (kilo's) and find out tomorrow if the deal (trade) is implemented. Approximate 48 hour from payment to delivery (Brinks truck loaded). 

tmosley's picture

YUUUUUPPP.

Keep us updated. Maybe take some pictures (be sure to strip exif data). Make a blogpost about it.

Put these idiots in their place. And fool SHOULD be able to see that such discrepancies can't continue to exist for YEARS, like these shysters claim they have.

Doug Eberhardt's picture

tmosley, I wrote about Rickards and the fear mongering crowd here; 

https://seekingalpha.com/article/4007197-fear-mongering-crowd-dollar-dea...

Gold has its place in a diversfied portfolio, though, and actually improves beta.

I have a company that sells it, and one that sells triple leveraged ETFs.

I don't have a relationship with any Bitcoin or other crypto, because of AML and other conservative reasoning, but something I am watching.

giovanni_f's picture

over the years, there is large, constant, increasing Gold demand. The BIS orchestrated Gold Pool 3.0 operation with its diverse ETFs and Paper Gold shenanigans has been very successful so far to channel investment Gold demand into paper supply. Gold Pool 3.0 will break, the question is when.

The_Juggernaut's picture

Bottom line, gold will always get you pussy. Beaniecoins, not so much.

I_rikey_lice's picture

$10 million is kind of chump change. Not saying Rickards isn't full of shit. 

Buy $10 billion worth of gold then see if it is availlable.

$10 billion isn't a whole helluva lot either considering cryptos have a market cap of over $80 billion (and falling).

Doug Eberhardt's picture

Retail market doesn't buy $10 million, nor $1 million that often, nor do the richest in the world. Hedge funds and some large pensions might get into some large  physical purchases, but again, rarely. Only the central banks, IMF, and Comex  or possibly Shanghai might deal in billions. But for every seller, there is a buyer. They aren't buying Crypto in large quantities that I am aware of, but there are plenty of speculators putting dollars into this crypto industry.

 

giovanni_f's picture

even if you have it, at times it it difficult to keep it if you are considererd a threat to the BIS gold pool 3.0. Ask Gaddhafi.

tmosley's picture

>Gold and silver always hold their value

Tell it to the Europeans who experienced a massive inflation in gold and silver due to the Spanish plundering of the new world. Then realize that there are thousands or millions of times as much exploitable precious metals available on asteroids in this solar system than there ever was on Earth.

But I'm sure your conclusion will remain the same, because facts don't matter to your decisionmaking process.

Only human.

realmoney2015's picture

Yeah, real cost effective to mine asteroids! I'm sure you can mine an oz of silver for less than $20 I'm space. 

Tulips, paper, and digits can all be dramatically produced at higher rates. Due to price manipulation miners have been ditching silver mining. It's not cost effective for them to mine it at these prices. Also bargain buying time.

tmosley's picture

Hahaha, back that truck off a cliff.

If you survive, do it again!

It's the silverbug mambo!

TuPhat's picture

Your one eye is blind.  If you invested in precious metals you were foolish.  Their are other scams that are much more lucrative.  Gold and silver are a hedge against disaster.  Crypto currency on the other hand will be part of the disaster.

tmosley's picture

Nice factless assertion.

I came here to laugh at you.

Ignorance is bliss's picture

What's the likelihood of discovering a new world to plunder? What a fuckin dumb shit thing to write.

tmosley's picture

Tonight, go outside and look up.

You won't be able to see it, both there are millions of tons of precious metals in easily accessable near Earth objects. They will be mined as byproducts of water, which is extremely valuable in orbit. Said metals will begin dropping out of orbit in 10-10000 tonne slugs starting within ten years.

But you will refuse to update your belief set given this new information because you are a typical human, rather than an atypical one.

0valueleft's picture

Hey Maxine, when you masturbate about pleasing Elon's Musk do you actually wear the space suit your mom made for you?

After the sun, the next nearest star is 4.3 light years away. A light year is the distance light travels in one year. One light year is 10 trillion kilometers. That's a HUGE number! Here's a way to imagine how far it is: to travel 10 trillion kilometers, you would have to circle the whole Earth 233 million times.

Funny you should mention Jim Willie, thank you, for the life of me I couldn't figure out who's insane rambling bullshit your comments reminded me of.

Just buy your crypto, feel good about it and shut the fuck up ya nut.

tmosley's picture

>Near Earth Objects are in orbit around Alpha Centauri

Goldbugs, ladies and gentlemen.

0valueleft's picture

Yeah right jack wagon 4.37 light years away. But silver is bad investment because we won't live long enough to see a return? The Jetsons was a cartoon, you do know that right.

Twinkle twinkle little star, that's you, a 2 twink star made out of solid cryptonite.

tmosley's picture

My first reaction was to laugh. My second reaction was to question whether you were seriously this stupid and ignorant or if you were trolling.

My third reaction was to laugh again when I realized you were being completely honest.

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

0valueleft's picture

Perhaps i'm wrong, maybe the planet you live on is close enough to a star to mine it cost effectively. Planet Redundent where everyone says stupid and ignorant. Don't laugh to loud, you don't want to wake your parents.

cpnscarlet's picture

Good comments today Except that one. It still costs much more to get extraterrestiral gold than what it's worth on earth.

tmosley's picture

What do you think it costs to get extraterrestrial gold? Assume a fully robotic workforce in orbit, with fuel and all other supplies mined from the even more abundant non-PM asteroids.

pathosattrition's picture

If there is no cost in obtaining extraterrestrial material, economically speaking, it would already be happening. Unfortunately, there are significant costs, since there are physical limitations to how much material (read: machinery, tools, human capital) can be propelled to escape velocity. Moreover, your assertion that there is no costs simply because the costs can be recouped is essentially like claiming that current gold miners have no costs of extraction simply because they sell the extracted gold for at least the costs thereof. While your claim may be based on some plausible reality (even if not the one in which we actually live), it misstates what "costs" are and how they are realized and allocated. Perhaps you should provide some evidence that gold extraction on these extraterrestrial objects would differ substantially to the methods and machinery employed terrestrially? Otherwise, you cannot merely assume that even recoupable costs are immaterial. Finally, I suggest you learn a bit more about the physics of leaving our planet, since there are substantial engineering and technological barriers between current reality and eventual exploitation of off-planet resources. Specifically, the fuel/payload limits whereby linear (one-dimensional) escape velocity is depended upon not one, but two multi-dimensional limits: the mass of the payload to be moved (three-dimensional) and the force necessary to accelerate said mass (two-dimensional, or geometric). To be clear, to move a mass, "m" to escape velocity, "s", the force, "N" required is proportional to the SQUARE of the mass to be moved, which presumably includes the mass of fuel necessary. Thus, because N=m*s^2, acheving the same speed with twice the mass requires 4 times the force. Unfortunately, that force is generated by a part of that mass, and there are physical limits to how much mass can be accelerated to the requisite velocity.

tmosley's picture

You remind me of the idiots who made the claim that man could never survive moving at speeds of greater than 30 miles per hour due to the air pressure preventing their breathing.

Send up one seed probe that mines, refines, and builds a robotic workforce from local materials, then tell me how much asteroid mining costs.

Just a few short years, thanks to exponential advances in technology, including AGI which Deepmind cracked a month ago, but no-one seems to want to acknowledge.

pathosattrition's picture

Links or gtfo. And your analogy is inapposite.

rejected's picture

I read that in a Heinlein novel a back in the 60's.  Also on a Star Trek where the Borg mined planets.

Humans?  Humans can't even correctly set up traffic signals, The US wasting it's energy on bombing everyone can't get off the planet without hitching a ride. Corporations won't build in the USA cause it costs too much. Cancer was supposed to be conquered 17 years ago but doctors found there's more money to be made keeping em sick then curing them.

Humans will no doubt destroy this planet long before they get interstellar travel or mine asteroids.

Bay of Pigs's picture

Tell it to people in Venezuela right now.

Fucking retard.

tmosley's picture

You should flesh out your comment. I can almost see a glimmer of an actual argument in there.

But I doubt you will, because you are too weak willed to even examine your own core values.

Consuelo's picture

 

 

You as well, might consider fleshing out details of these near-Earth object exploration/extraction projects set to commence within the next 10 years...  I'm happy to check 'em out, just post the links ---

ogretown's picture

Good point. And yes...there are gold fields in the southeastern part of Venezuela. Lots of gold to dig up and pan. Those who have gold to barter are eating very, very, very well as well as being able to buy just about anything they want from their neighboring countries. And it appears these folks are smart as well - they do not broadcast their well stocked pantries to others in their community. 

tmosley's picture

>Oh if ONLY the United States would collapse into a communist pit of dispair, then MAYBE my gold and silver investments would finally pay off!

I came here to smug at you.

rejected's picture

Yes,,, also happened in the California gold rush, but both steadied out.

It's a bit difficult getting to those asteroids and mining,,, on the other hand,  the paper you seem to love only requires a printing machine.

tmosley's picture

>paper you seem to love

You might want to get tested for mental retardation. Don't take the chance of passing it on to your children. Get castrated today!

Free ounce of silver with the first 10000 castrations!

I_rikey_lice's picture

Why don't we just go to the moon first. Then we can talk about mining asteroids.

Fucking unbelieveable.