Bullion Review: May 6th – May 10th

See what’s new in the bullion market this week!

1. Greyerz Shares 8 Reasons Gold Will Break $1350

May 05, 2019

It always puzzles us when we look at how many investors do not have gold as part of their investment portfolio.  But at the same time, you can’t really blame them – gold is often wrongly believed to be useless by investment advisors and the media. In this article Greyerz shares his 8 reasons to invest in Gold, exposing some delightful truths:

There are a number of critical factors that will soon lead to the crossing of the Gold Maginot Line at $1,350

Among them are:

• The LBMA physical gold shortage as discussed above
• The global credit explosion since 2006 from $125 trillion to $250 trillion today.
• Gold vs US money supply being at the same level as 1970 (Gold $35) and 2000 (Gold $300)
• The fragility of the financial system.
• US budget deficits for 60 years and trade deficits for 50 years.
• The continuous debasement of currencies.
• Trade wars
• Geopolitical tension.

2. Gold & Silver to Kick Off Bull Markets

May 05, 2019

Greyerz has been busy this week and has also shared his thoughts on economic events from the past and what these mean for today and the upcoming future.  He concludes that:

The metals are now ready to start the most spectacular bull markets that the world has ever seen. This market is like a coiled spring and we will see rapid moves to the upside in both gold and silver. The first target for gold, which could be reached quickly, is $1,600. At the same time, silver will probably go to at least $25. 

As I discussed at the beginning, sadly, a higher gold and silver price is associated with difficult conditions in the world, both economically and socially. But initially the move will happen before the difficult times start. 

Wealth preservation investors must remember that the forecasts above are about short term timing and not about protecting your wealth. The risks in the world are now of a magnitude that any serious investors who wants to avoid a total annihilation of their wealth must reduce their exposure to all the bubble assets, stocks, bonds, and property, as well as to the banking system.

3. Silver Demand Reaches 3 Year High

May 06, 2019

For the last three years, silver’s performance to gold has always been lower, with the silver-to-gold ratio widening from 67:1, a historic average held for 30 years, to 85:1 today.  However, Smirnova suggests that there is a silver lining to this news:

The Silver Institute’s World Silver Survey 2019, released in mid-April, revealed that demand for silver in 2018 reached a three-year high last year, rising 3.5% compared to 2017 levels. That demand growth was coupled with a 2.7% decline in supply. The primary demand driver was a notable recovery in retail investment, led by silver bar demand.

While the silver market has weakened due to the silver “paper” market and weakness in investment demand, the physical demand for silver is increasing.

4. Not Seen in GDP Reporting: Real US Unemployment rate is 22.1%

May 6, 2019

In last week’s bullion review, we spoke about the increasingly concerning unemployment rate in the US.

This week, ShadowStats’ founder John Williams shares his thoughts on the collapse of the US dollar and tanking economy, sharing some interest facts you may not be aware of:

https://youtu.be/GOos-Ae0qGI