December 2012 American Eagle Silver Coin Sales 3rd Highest in History [mineweb]

he U.S. Mint reported annual American Eagle gold bullion sales dropped in 2012 from 1 million ounces in 2011 to 753,000 ounces last year.

However, December 2012 gold sales increased to 76,000 ounces, up from 65,500 ounces in December 2011.

Annual sales of American Eagle silver bullion coins totaled 33,742,500 ounces in 2012, down substantially from the sales of 39,868,500 ounces in silver bullion coins reported by the Mint in 2011. Nevertheless, December 2012 American Eagle silver bullion sales were the third highest in the Silver Eagle’s history.

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Gold and Silver Updated [silverseek]

Yesterday I made a post with the provocative title Silver is in a Bear Flag in response to some bullish headlines and well… silver’s Bear Flag, which remains intact and viable by daily chart.

A favorable bigger picture risk vs. reward situation was also highlighted for gold and silver in that post. Among the reasons for this:

  • Technical upside potential appears greater than downside.
  • The inflation-dampening Operation Twist is now put in the rear view mirror in favor of good old fashioned T bond and MBS Monetization.
  • The Commitments of Traders structures are improving.
  • Sentiment – especially among gold newsletter writers tracked by Mark Hulbert – is in the dumps and contrarian bullish.

 

Importantly, there is also the value proposition of gold, which has not changed throughout the long and bullish consolidation these last 1.5 years. By the graph below, courtesy of the St. Louis Fed, it has not changed since the beginning of the secular bull market either.

Here we have the gold price adjusted by the Monetary Base, which is the key money supply measure to be watching (as opposed to M2, MZM or their velocity measures) for signs of inflation.

gold and base

 

 

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Report that Russia Has Issued Gold and Silver Coins Which Can Be Used As Legal Tender [jessescrossroadscafe]

Unfortunately I do not read Russian so I have not yet completely verified this, but I thought it was interesting enough to pass along on the face of it, since it is ‘making the rounds’ of the internet, and some have asked me about it.

Here is the reported document in Russian.

As they are not coins for general circulation but rather coins to commemorate the Russian Olympics I do not see this as signficant perhaps as the blogger quoted below. Also it appears that they will be issued in rather limited numbers so will probably price as a collectible and not as currency. That is how it is with commemoratives in limited edition.

Here is the sentence from the document that provoked such a strong reaction in some circles.

“The coins are legal tender cash payment in the Russian Federation and must be accepted at face value in all kinds of payments without any restrictions.”

I have not yet done all the math to determine the equivalent ‘face value’ of the coins in other currencies, but I have taken an initial swipe at it.

In the case of the 50 Rouble gold coin, it is 7.78 grams, or 0.25013 troy oz.

At $1700 per ounce, that would make the gold coin worth about .999 x .25013 = .25 ounce of gold, or roughly $425 for a face value coin of 50 roubles.

That is about 8.5 dollars to the rouble. And I don’t think many would take that exchange, since the US dollar is now trading at about 30.77 roubles.

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Sale of gold coins and silver suspended in Argentina [bancadeoro]

The Central Bank of Argentina (BCRA) has suspended the sale of commemorative coins of gold and silver to the public “because of the high prices of these metals in the world market.”

The siege of the gold sales in Argentina and not only affects investment gold but now also affects sale of commemorative coins.
Spokesmen for the Central Bank of Argentina said that one factor of the suspension of sales was a “seasonal issue by metal prices,” and said they have halted the sale of collector’s items “because the amount remaining is very little and a portion of the edits must be kept to have stock “.
Argentina prohibits its citizens to buy dollars and gold
Some traders feel that this is a restriction similar to the dollar. The snare the dollar seems also extends to the commemorative coins in gold and silver. From a list of 33 commemorative coins existing gold and silver, are sold only three silver, being the twentieth anniversary of the death of Jorge Luis Borges, the Gesta of Malvinas and the World Cup in South Africa.
In some banks in Buenos Aires in the window with gold coins as investment gold Argentino, the Krugerrand or Dollar, said they are only on display, but can not sell.
Asked about the new restrictions on the sale of gold, one of the bankers merely stated that the stocks after the dollar, with the official measures that restricted the purchase and sale of U.S. currency, has now banned the sale of gold. Neither banks nor require employees BCRA know how long the suspension will last.

The Central Bank of Argentina (BCRA) has suspended the sale of commemorative coins of gold and silver to the public “because of the high prices of these metals in the world market.”

The siege of the gold sales in Argentina and not only affects investment gold but now also affects sale of commemorative coins.

Spokesmen for the Central Bank of Argentina said that one factor of the suspension of sales was a “seasonal issue by metal prices,” and said they have halted the sale of collector’s items “because the amount remaining is very little and a portion of the edits must be kept to have stock “.

Argentina prohibits its citizens to buy dollars and gold

Some traders feel that this is a restriction similar to the dollar. The snare the dollar seems also extends to the commemorative coins in gold and silver. From a list of 33 commemorative coins existing gold and silver, are sold only three silver, being the twentieth anniversary of the death of Jorge Luis Borges, the Gesta of Malvinas and the World Cup in South Africa.

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China’s Major Role in Silver Explained [silverinvestingnews]

The structure of the silver industry in China is almost unrecognizable from the situation 20 years ago, a new reportfrom Thomson Reuters GFMS states. In 1990, China was a relatively small player in silver. Now, the nation is responsible for 17 percent of global demand and produces 14 percent of the world’s silver. GFMS’ latest research reveals that China’s expanding role in the silver market has been driven by the liberalization of its silver industry and over a decade of economic growth.

After the revolution in 1949, gold and silver mining did not feature in the People’s Republic’s economic planning, GFMS explains. Investment in the industry was limited and private trading and personal ownership of the metals was forbidden.

China’s low level of silver production in the early 1980s raised concerns among State Council members, who decided that local production needed to expand in order to support industrialization and move the country toward self-sufficiency.

In 1983, regulations that covered the various aspects of the silver and gold industries, from production to export, were rolled out. The People’s Bank of China (PBOC) was granted monopolistic authority to set prices and buy and sell silver.

That initiated the rise of China’s silver production, which resulted in China becoming a surplus producer by the end of the 1980s. Production surpluses continued in the 1990s, and by 1997, the PBOC realized state stocks were more than sufficient for China’s fabrication needs.

Authorities eventually came to see silver as a metal with which to test deregulation. Exploratory sales from state stocks began in 1998. In 2000, an official trading platform was designated and China’s monopoly on silver ended.

China’s silver supply

China is now the third-largest producer of silver after Peru and Mexico.

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GATA’s Bill Murphy & Chris Powell call out Gold and Silver Market Manipulation Conspiracy Critics

Striking similarity between the chart of $Silver and Bitcoin

silverBitcoin

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