Gold Price

Nation urged to increase holdings of gold

BEIJING - China should further diversify its foreign-exchange portfolio and make more gold purchases when the metal’s price dips but is still at a relatively high level, a senior central bank official said on Monday.

“The Chinese government should not only be cautious of the imported risk caused by rising global inflation, but also further optimize its foreign-exchange portfolio and purchase gold assets when the gold price shows a favorable fluctuation,” said Zhang Jianhua, director of the research bureau affiliated with the People’s Bank of China (PBOC).

He made the remarks in an article in the Beijing-based Financial News, a newspaper run by the PBOC.

The spot gold price declined 16 percent over the past three months to less than $1,600 an ounce last week. It touched a record of more than $1,900 in early September.

Zhang said bleak economic conditions, increasing international liquidity as countries turned to monetary easing and the resulting high inflation had dampened investors’ confidence. He said that gold had become the only “safe haven” for risk-averse investors. “No asset is safe now. The only choice to hedge risks is to hold hard currency - gold.”

Zhang didn’t specify what proportion of China’s $3.2 trillion foreign reserves should be held in gold.

China is the largest foreign holder of US Treasury securities, having invested about one-third of its foreign reserves in those bonds. About 20 percent has been invested in euro-denominated assets.

As of this month, China ranked sixth worldwide in gold holdings, with about 1,054 tons. The value accounted for about 1.8 percent of the country’s total foreign reserves, according to a report released by the World Gold Council (WGC).

The US topped the list by holding more than 8,133 tons of the metal, 76.6 percent of its foreign reserves by value, while Germany ranked second by holding 3,396 tons, 73.7 percent of its reserves.

In 2011, countries including Russia, Thailand, South Korea, Bolivia, Colombia, Kazakhstan and Venezuela purchased the metal to increase gold holdings of their central banks’ reserves.

China didn’t sell or buy gold from 2010 to 2011, according to WGC statistics.

“The PBOC may have realized that its euro-denominated assets are in greater danger than it expected and started to eye gold,” said Li Jie, director of the foreign-reserves research center at the Central University of Finance and Economics.

“But it’s impractical for China to put its foreign reserves into commodities, including gold, because all these markets are too small for such a big hoard.

“For example, China’s purchasing gold would push up the price of the metal and increase its own cost,” said Li.

Li added that there was no easy way for China to get as much gold as it wished because major economies such as the US hold the majority of gold and market supplies are very limited.

China produced 31.75 tons of gold in October, the Ministry of Industry and Information Technology said on Monday. Gold production gained 5 percent in the first 10 months of this year to 290.752 tons.

Driven by increasing demand from risk-averse investors, the international price of gold repeatedly reached new highs in 2011.

Central banks made their biggest gold purchases for a single year in 2011 since the Bretton Woods system dissolved in 1973 and major currencies began to float against each other without being pegged to gold. China has vowed to further diversify the nation’s foreign-reserve portfolio amid growing global financial uncertainty. In October, it cut holdings of US Treasury securities by $14.2 billion to $1.13 trillion, the lowest level this year.

Media reports have said that the PBOC plans to create a fund worth $300 billion to invest the country’s foreign reserves in the US and European markets. The fund will reportedly seek to invest in real assets and company shares, rather than government securities.

By Wang Xiaotian
Source: http://www.chinadaily.com.cn/usa/business/2011-12/27/content_14332943.htm

Battle lines drawn in gold price direction predictions

Precious Metal Gold

While some headlines are predicting the end of the bull market for gold, many commentators remain bullish on the yellow metal and all agree that more volatility should be expected.

GRONINGEN -

As gold prices plunged as much as 3.5% in trade yesterday, permabear and economist, Nouriel Roubini, was engaging in some gold bull baiting on Twitter.

“Gold at a 7 weeks [sic] low down to 1635. Where is 2000 gold dear gold bugs?” He said, and, later in the day, “Gold bugs in hiding as gold prices plunge.”

At roughly the same time gold mining entrepreneur Rob McEwen in a talk to the Geological Society of Nevada, stood firm on his prediction that gold prices would hit $5,000 over the long term

McEwen and Roubini represent polar opposite visions of the metal that are long held and well reported on and so their sticking to their guns came as little surprise. More noteworthy in the context of the second-worst rout in the metal since the 2008 financial crisis were the recent comments by author and economist, Dennis Gartman.

In his most recent letter, Gartman was quoted by Bloomberg as writing, ” “Since the early autumn here in the Northern Hemisphere gold has failed to make a new high. Each high has been progressively lower than the previous high, and now we’ve confirmation that the new interim low is lower than the previous low. We have the beginnings of a real bear market, and the death of a bull.”

He went on to add that while buying in China rose significantly in October, the news of the surge failed to move markets, “Buying of that sort should have sent gold prices soaring,” Gartman wrote. “One of the oldest rules of trading is simply this: a market that cannot or does not respond to bullish news is a bearish market not a bullish one.”

The question now becomes, are the recent falls a sign of a longer term pull back in the metal, or rather a shorter term move brought about by year-end squaring and liquidations by the more speculative longs, in order to cover other loss-making positions.

While Gartman has turned bearish, many other commentators remain positive about the longer term outlook for the metal.

UBS’s Edel Tully wrote this morning, “Our core view on gold remains bullish. We forecast an average 2012 price of $2,050. Most of the factors that pushed gold higher in 2011 are not going away. Indeed, a compelling case for higher gold returns next year can be built on: persistent sovereign stress, an expected recession in Europe, benign growth across developed markets, a relatively sedate outlook for competing asset classes, still-low interest rates in the US, and further rate declines in Europe, as we expect. Adding to the mix another of our expectations - that central banks will maintain their 2011 gold buying spree - makes gold a compelling investment thesis.”

However, while the bank remains positive on gold it has lowered its average gold price estimates for both 2011 and 2012 by 2% and 1% respectively to $1,570/oz and $2,050/oz.

And, overall, the group is more bearish on commodities in general, ” Two of our most important signals for the miners and commodities have turned negative. Capital is flowing out of emerging markets and back to the US, undermining commodity demand - because macro data and credit conditions there are improving, making an imminent commodity-supporting ‘QE3′ unlikely. Meanwhile, European bank deleveraging promises more credit stress, directing commodity consumers and traders to destock. Right now, commodities need support from either a resurgent China or a substantial, US/European-led QE programme.”

Standard Bank, writing in its daily commodities note yesterday said of the weakness in the yellow metal, We believe that this downward pressure is likely to remain in place. Physical market demand from India and South East Asia continues to pick up, with gold below $1,650 providing support at this key technical level. However, as pointed out yesterday, the pick-up in demand is from relatively low levels, and overall demand remains well below levels seen in October.”

But, as it points out, “While gold in dollar-terms is under huge pressure, gold in euro-terms only shed €20. Market sentiment and momentum has also turned bearish on gold, reflected in the short-dated gold skew where puts are in high demand relative to calls.”

Silver specialist and precious metals commentator, David Morgan, speaking on Mineweb.com’s metals weekly podcast, described the situation currently being seen in markets as one of “wait-you-out or scare-you-out.”

He explained that either markets will “scare you out” with huge drops that are very rapid - or “wear you out where you get these long consolidations where silver and/or gold do not make new highs but the fundamentals keep getting better and better.”

Currently he says, there is a lot of fear in markets and, while a minority of people view gold and silver as the “ultimate cash” most of the world’s population view currency as such and, as a result, when there is a liquidity squeeze markets move into cash.

“There’s a rush from any asset - real estate, stocks, bonds, even metals, and especially paper metals, into the monetary base or the ultimate monetary base which is the currency. And that puts a lot of pressure upward in certain currencies like the US dollar because right now it’s perceived to be the safest… I believe this is an intermediate term situation which puts pressure [downward] on the gold and silver price and also puts pressure upward on the currencies, especially the ones perceived to be the strongest and safest.”

All in all, while a lot of commentators remain bullish long-term there is a significant amount of fear present in markets, especially as we head toward the year-end. As usual coming up to and during the holidays emotions are high and when you mix in a continued crisis in the euro zone, looming debt problems in the U.S. and the frantic scramble to square the accounts before December 31st, it is safe to guess that markets are both scared and worn out. How long that will last though, is anyone’s guess.

By: Geoff Candy
Source: http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=141729&sn=Detail

Gold Tops $1,800 in N.Y. as Europe Crisis Spurs Investor Demand

Nov. 8 (Bloomberg) — Gold futures topped $1,800 an ounce for the first time in almost seven weeks on concern that European leaders will be unable to contain the region’s debt crisis, fueling demand for the precious metal as a haven.

Italian Prime Minister Silvio Berlusconi failed to muster an absolute majority on a routine parliamentary ballot today, fueling more calls for his resignation. Federal Reserve Chairman Ben S. Bernanke signaled more monetary stimulus may be needed to cut unemployment, while the European Central Bank last week unexpectedly lowered interest rates. Gold has rallied more than 11 percent since the end of September.

“The turmoil in Europe has brought the fear trade back to gold,” Lance Roberts, the chief executive officer of Houston- based Streettalk Advisors, said in a telephone interview. “Also, a renewed wave of policy easing by central banks is helping gold.”

Gold futures for December delivery rose 0.5 percent to close at $1,799.20 an ounce at 1:47 p.m. on the Comex in New York, after touching $1,804.40, the highest since Sept. 21. Prices fell to $1,785.70 in after-hours trading.

Earnings growth in Europe will stagnate in 2012 as governments rein in spending and banks shrink their balance sheets, according to Gary Baker, the London-based head of European equity strategy at Bank of America Corp.

“Fundamentals are stronger than before, with the EU crisis more complicated than before,” Pradeep Unni, an analyst at Richcomm Global Services in Dubai, said in a report. “Retracements and corrections are possible as we climb above $1,800, but stay invested.”

Extended Rally

Berlusconi offered to resign as soon as Parliament approves austerity measures in a vote next week, Italian President Giorgio Napolitano said tonight in an e-mailed statement after meeting Berlusconi in Rome.

Bullion is in the 11th year of a bull market, and futures reached a record $1,923.70 in New York on Sept. 6 as investors sought to diversify away from equities and some currencies. The precious metal has gained 27 percent this year.

Silver futures for December delivery advanced 0.9 percent to close at $35.153 an ounce on the Comex, rising for the second straight day.

On the New York Mercantile Exchange, platinum futures for January delivery rose 0.9 percent to $1,673.10 an ounce. Palladium futures for December delivery climbed 2.3 percent to $677.25 an ounce.

-With assistance from Phoebe Sedgman in Melbourne, Adam Haigh and Nicholas Larkin in London. Editors: Steve Stroth, Daniel Enoch

To contact the reporter for this story: Debarati Roy in New York at droy5@bloomberg.net.

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

By Debarati Roy
Source: http://www.businessweek.com/

Recent sell-off sets up next gold rally

The following is a guest post by Lawrence Carrel, author of “ETFs for the Long Run” and “Dividend Stocks for Dummies.” The opinions expressed are his own.  Full disclosure: The author has had 7 percent of his personal retirement account in a gold ETF for the past four years.

When the price of gold plunged 20 percent last month, many market watchers declared the gold boom over. Stalled, yes; ended, no, according to many gold analysts, who believe the precious metal may instead be near a new sustained rally.

“I can tell investors don’t sell off your gold,” says Martin Murenbeeld, the chief economist at DundeeWealth. “We’re at a crossroads here.”

During the summer, gold surged 29 percent to a record high of $1,920 a troy ounce. This jump caused the price to drastically detach from its 200-day moving average, an important trend line in technical analysis that the gold price had closely hugged for much of the last decade. Technical analysts considered this jump unsustainable and in September gold gave back most of these gains.

Gold fell to a low of $1,534.49, much to the technicians delight, and it bounced off the 200-day moving average’s support level of $1,527. While most gold watchers expect the metal to experience turbulence during the next few months, the world hasn’t changed much, and gold prices may climb higher because of its status as a safe-haven during turbulent times.

“Have the countries around the world solved the debt crisis?” asks Nick Barisheff, president of Bullion Management Group, a precious metals investment company based in Toronto. “Have the bailouts ended? Have their currencies stopped tanking?“ With the world already worried about Greece’s fiscal problems, gold summer’s rally was sparked by fears that the U.S. might default on its debt.

After Standard & Poor’s downgraded the U.S. debt, investors flocked to gold as one of the few safe havens left. This raised the specter of recession, which is never good for gold. The combination of increased collateral requirements for trading with falling commodity and stock markets, gold tumbled as investors sold it for liquidity amidst a flurry of margin calls.

Still many analysts think the gold market isn’t in a bubble and that the run-up is far from over. Analysts say a bubble is when an asset goes up exponentially 15 to 20 times.

Gold is up seven times during the last decade. Since its low on Sept.26, 2011, gold has jumped 9 percent. Most analysts expect the price to retest September’s low during the next few months. If it bounces again that would be the buy signal.

Ed Carlson, Chief Market Technician at Seattle Technical Advisors.com says gold could fall as far at $1,460. But even Carlson predicts a new sustained advance will begin after Thanksgiving.

The fundamental factors for being bullish are also compelling. Low interest rates are very good for gold. In August, the Federal Reserve promised to keep rates low for the next two years. Additionally, most analysts expect the European Central Bank (ECB) to stem the European debt crisis with a flood of new money.

“The relationship between gold and world liquidity is very direct,” says Murenbeeld. “If countries print money gold goes up.” Murenbeeld says there is a high probability that the ECB and the European System of Financial Supervisors (ESFS) will insert a significant amount of money into the system, anywhere from 1 trillion euros to 2 trillion euros.

“This liquidity will stabilize the banking sector so that it can withstand a default from Greece and speculation of default from other countries. All that plays into the hands of gold.” Murenbeeld recommends investors use a dollar cost averaging strategy here. “When they do the bailout that will dilute the currency, “ says Barisheff.

“The governments will be forced to print more money because politically that’s the least painful thing to do. And as they do the price of gold goes up.”

However, Barisheff warns that it’s easy for governments to lose control of their currency, which can send a country into hyperinflation. He says gold will stop rising when governments institute sustainable economic policies, but if inflation isn’t controlled, gold could rise as high as $10,000 in five years. “And there is no appetite to do anything sustainable.”

Why isn’t the Gold price going through $2,000 now?

Precious Metal Gold

The gold price went over $1,900 and looked as though it was going to mount $2,000, but since then has fallen back to $1,600 and is in the process of consolidating around the lower $1,600 area. It was expected that it would have moved a lot higher faster, but that hasn’t happened, yet.

In the face of Italy’s downgrade to A2 by the ratings Agency, Moody’s summary that, “There has been a profound loss of confidence in certain European sovereign debt markets, and Moody’s considers that this extremely weak market sentiment will likely persist. It is no longer a temporary problem that might be addressed through liquidity support, and several euro-area governments are increasingly affected by the loss of confidence.” The downgrading was expected, as are further downgrades for the different Eurozone members, shouldn’t the gold price be on its way through $2,000 to much higher levels?

The ‘downturn’

The news over the last few weeks has sent global financial markets down very heavily as a slow recovery morphed into a downturn and at best a flat economic future in the developed world. These falls have been accompanied by tremendous worries that there could be a major banking crisis that will cripple the Eurozone economy as a whole, not just the debt-distressed nations. In France growth is now at zero, in Greece it is somewhere south of a 5% dip in growth well into recession. Greater austerity simply adds to the fall in government revenues defeating their purpose of reducing their deficit. All of this implies an ongoing shrinkage of the Eurozone economy. This hurts investor capacities in all financial markets and wealth throughout the Eurozone. Cash becomes ‘king’ as investors flees markets to a holding position waiting for much cheaper prices before re-entering markets at lower levels.

The path to deflation is then made. Deflation in its early stages causes tremendous de-leveraging. That is the selling of positions to pay off loans taken to increase positions. It may come about because of investor prudence, banks calling in loans, stop-loss triggers and margin calls [where the level of debt against positions becomes too high and forces sales]. This often and particularly in the case of precious metals has nothing to do with the fundamentals of the market. It is simply the position of investors. This happened in the precious metal markets as well. This is why gold and silver prices fell.

De-leveraging

As was the case in 2008 and often through history, the process of de-leveraging is a short-lived one, even when it is savage. Once and investor has sold the positions he feels he needs to that downward pressure on prices disappears. Leveraged positions are the most vulnerable of investor held positions and can make up the froth or ‘surf’ in the markets, which cause the volatility levels to increase when dramas strike. In 2008 these positions were huge because there had been two and a half decades of burgeoning markets that encouraged greater risk taking. Since then, while leveraging has taken place it has been less and rapidly removed when dramas hit.

In 2008 we saw a similar drop in prices from $1,200 to $1,000 [20%], which equates to the fall from $1,910 to $1,590 [16.9%]. In 2008 the precious metal prices then slowly rose as buyers started to come in from all over the world. It took over a year for prices to recover back to $1,200.

Change in market structure

Today the shape of the precious metal markets is quite different, particularly that of gold. In 2008 central banks were sellers, today they are buyers. In 2008 the Chinese gold markets were small. Since then they have grown to such an extent that they are soon to overtake India. These are two dynamic features that give demand a totally different shape to 2008. More than that, the impact of the developed world long-term has diminished quite considerably. It now represents less than 21% of jewelry, bar and coin demand. The emerging world as a whole represents over 70% of such demand now.

The bulk of the world’s physical gold that comes to the market is dealt at the London twice daily Fixings. The balance that is traded outside the Fixings is the most short-term price influential amounts, producing the swings that resemble the waves on the seashore. It is these traders and speculators that often persuade long-term buyers to stand back and wait for the prices to swing to the point that persuades them to enter the market. The drop from $1,900 had this effect on investors. Now that the fall has happened we see a surge in demand from the emerging world to pick up the slack in the market. We have no doubt that central banks are buying the dips as well.

So once the selling from the developed world has stopped [emerging market demand waits for this before buying, allowing the fall to extend further] in come the buyers happy that they are entering the market at a good time. Because of this change in market shape we fully expect the market to take far less time to find its balance and allow demand to dominate.

2012 recession and the battle against it

The I.M.F. has just warned that the developed world will enter a recession in 2012. Will that be a negative for the gold market? We do not believe that it will. The world has seen the recovery peter out, has seen the sovereign debt crisis arrive and now sees the I.M.F. recommend that the Eurozone banks be recapitalized. What does this mean for precious metals?

Cast you minds back to the recapitalization of U.S. banks under the TARP measures whereby the Fed bought the ‘toxic’ debt investments of the banks against fresh money. When we say fresh we mean just that, newly created money in the trillions. This did lower the perceived value of the dollar inside and outside the U.S. The effect on gold was palpable as it rose back through $1,200 and onto new highs.

Already we are hearing rumors of an E.U. government minister’s plan to walk the same or similar road. With the recent past in mind, we are certain that that will lower the perceived value of the euro and see euro investors seek places to cling onto the value the euro still has. This time round we fully expect markets to discount these actions in the same way. The downturn will therefore be fought with new money creation in the same way the U.S. did it from 2008 on.

Second time round

There is a significant difference between 2008 and now. In 2008 the credit crunch was new to investors and shocked the markets into overreactions. In 2011 we are not shock but expectant of what lies ahead. In 2008 the developed world economy had considerably more resilience than it does now, so the situation is more serious and less likely to be believed as the panacea for the developed world’s economic crisis. Because the gold and silver prices rose so strongly after that time and in the face of those ‘solutions’ the same will be expected now. In 2008 confidence in the financial system as well as in the monetary system appeared unassailable, not this time. While the developed world, outside of the gold ETF’s in the U.S., has not been the main driver of rising gold prices, this time we would not be surprised to see their resilient confidence in their world snap and a frantic search for safe-havens follow.

Yes, if we see a repeat of the 2008 breakdowns in the near future they will slaughter remaining confidence in the monetary system and the ability of its governments to set matters straight. What then for gold and silver?

By Julian Phillips
Source: www.ibtimes.com

Silver Q4 Outlook

The silver has made impressive gains since the downgrade of US debt renewed fears about the global economy. Now sitting at a price of $42.34 per ounce, nearly its highest level since April when silver nearly reached its historic $50 per ounce high. The main factor holding silver back from matching the run up in price seen in gold is the industrial component to silver’€™s demand. Investors fear that a slowing economy will dampen the industrial demand component to silver.

Both silver and gold have upside potential as the global economy is unlikely to make a dramatic turnaround by the end of Q4. This is a key factor behind some of the world’s largest banks to revise their price projections for silver in the coming months.

Ongoing economic concerns
On top of the downgrade of US debt, an unexpected rise in jobless claims, as well as mounting speculation surrounding another round of easing measures from the Federal Reserve have added to the recent rally in precious metals prices.

Gold and silver are €œbeing lifted by expectations that the failure of the US economic recovery to gain traction will force the Federal Reserve to embark on a third round of quantitative easing, which essentially translates into printing money,€ reported Jan Harvey for Reuters.

Loose monetary policy has been the single most powerful argument of gold and silver bugs since the economic collapse of 2008. If a third round of quantitative easing measures comes from the Fed, most analysts expect aggressive buying of silver and gold.

The Eurozone is no better off. The ECB lowered its growth forecasts, which sent European shares falling early in the week. Growing fears of a recession and more evidence of political disunity in the Euro zone hampers the regions ability to solve the debt crisis.

Price forecast

Recently, UBS upped its price forecast for silver and gold, but warned that a correction to the precious metals rally is an increasingly possible scenario. The bank noted that volatile trades may come with rising margin requirements in Chicago and Shanghai, as well as ahead of Ben Bernanke’s speech on Friday.

Edel Tully, an analyst with UBS commented, “€œthose who have missed out on the last few hundred dollar rally in the gold price perhaps believe that gold is near its short-term peak. And instead of playing gold from the short side, they prefer buying silver.”

UBS raised its price forecast for silver for one month prices up from $35 per ounce to $46 per ounce, and three-month prices to $50 per ounce up from $33 previously. The key short term resistance level is the $44 per ounce mark. Silver yet to breakthrough $44 since pulling back from over the $48 highs in April.

For the long term, if silver can break through the $44 level, as UBS forecasts for the next month, then the $50 per ounce mark seems to still be the psychological resistance level for silver market observers.

One can only speculate what events will have to take place to break the high water mark for silver. The implementation of QE3 from the Fed? A meltdown of stock markets worldwide which would mark another economic collapse?

Regardless of the doomsday scenarios, the global economic recovery is not gaining traction. Further debt concerns and loose monetary policy will continue to support silver. If the key short term resistance level of $44 per ounce is breached, most analysts expect silver to continue upward to the $50 mark before significant profit taking occurs.

By Michael Montgomery
www.resourceinvestingnews.com
09/09/11

Silver Will Reach An Unbelievable Price and Outperform Gold

By Mark O’Byrne | February 2, 2011 7:13 AM EST

Hopes of economic recovery swept stocks higher in New York yesterday and this confidence spread to Asian equity markets. European stocks are tentatively higher as concerns about Egypt and geopolitical risk may be hampering gains. Oil prices remain near recent record highs (brent rose above $102 a barrel) and there are hopes that geopolitical tensions will subside, markets will remain calm and there will not be panic buying of oil and a new oil crisis.

Silver is marginally lower today in all currencies, but recent action suggests we may have seen capitulation and are in the process of bottoming out. Physical demand remains robust and both jewelers and investors are using the sell off as an opportunity to buy on the dip.

Demand for US Silver Eagles exceeded the record of monthly sales in 1986 by nearly 50% with 6,422,000 one ounce silver bullion coins sold. Yesterday alone saw another 50,000 Silver Eagles sold showing that physical demand for silver remains very robust. Reports of shortages of 100 ounce silver bars are overstated at this stage but there is certainly a degree of tightness developing in the market that we have heretofore not experienced.

Premiums for gold bars in Hong Kong and Singapore remain at the highest level since 2004. While Chinese New Year demand has ebbed, wedding season in India is next month and Indians will accumulate on the dip as they always do. Gold imports in India, the world’s largest consumer of the precious metal, already rose 18 percent in January to 40 tons. Indians buy gold, and increasingly silver, jewelry at religious celebrations and weddings and use it as a store of value.

Legendary investor Jim Rogers speaking to investors in Amsterdam this morning, said that gold is still far from being a bubble and investors should sell bonds and buy precious metals. The chairman of Rogers Holdings, who predicted the start of the global commodities rally in 1999, said that “gold should have a rest but it’s far from being a bubble yet.”

“Gold will have reached an unbelievable price before it starts falling,” Rogers said, who owns gold but prefers silver due to it remaining cheap relative to gold and cheap on a historical basis.

Rogers recently said “silver is going up, but silver is 40% below its all time [nominal] high. Yes, commodities have been going up recently, but they are still extremely depressed on a historic basis.”

(Zero Hedge) — US Mint Sells Absolute Record 6.4 Million Ounces Of Silver In January, 50% More Than Previous Highest Month

As the topic of US Mint silver sales is not new to our readers, after we first brought attention to the record January sales by the Mint, we will not dwell much on it, suffice to say that the final January tally is in. And at 6,472,000 ounces, this is nearly 50% higher than any prior month in the Mint’s 26 years of published sales history. This has occurred, despite supposed profit taking in the paper silver market in January. And just today, another 50k, were sold. It seems that physical buyers continue to enjoy the dip in paper silver that is providing them with an attractive entry point.