It appears we are seeing another sign of the frequency shift. Over the
past few weeks we have been speaking more about this shift in terms of
spirituality and and community, but today we see it manifesting in a whole
other area.
The decline in mining output, by the “world’s largest gold miner”, Barrick Gold, seems to point towards undeniable reasons,
as we have been saying for the past year, for gold to climb much, much
higher. Gold, and silver, will break the chains of the bullion banks grip as
the gold and silver traders begin to see more charts that look like the one
below. This chart should get the attention of any gold bug – especially the
trend that really began almost 7 years ago.
chart – Gold Core
It doesn’t take a genius to see a very serious decline in output beginning
third quarter 2013 – five years ago. There is the one outlier in mid 2015 but
it was completely washed out during the next two quarters. The downward trend
seems to be intensifying – lower highs and much, much lower lows.
American Gold Eagle sales in March 2018 fell by 83% compared to March
2017, if that doesn’t constitute a frequency change not sure what does. As we reported last month
If we compare March 2017 to March 2018 we see a dramatic change
A mere 2,500 AGE one ounce coins were sold to the AP’s in March 2018 with
an additional 10,000 one-tenth ounce coins (1,000 ounces) being sold as well
for a total of 3,500 ounces and 12,500 total coins. Not a single half or
quarter ounce AGE coin sold in March 2018. This is an 83% nosedive in
sales in the all important year-over-year category in the total
amount of gold ounces sold in March. If this were a normal business the doors
would be closed, the inventory sold off and business shuttered.
We have been gathering up low mintage American Gold Eagles (AGE’s) and
Buffalos and if anyone sees charts like the one below and can not see there
may be an opportunity for higher premiums in the future, then it may require
a second look.
chart – Gold Core
American Gold Eagles sales collapsed in 2017 and with the exception of
three of the past sixteen months, going back to December 2016, sales have
been absolutely abysmal. Any of the AGE coins – 1 ounce, 1/2 ounce, 1/4 ounce
or 1/10 ounce – minted in 2017 or 2018 has the potential to command much
higher premiums over the next few years. Remember, at the end of the day if
the premiums collapse in the face of much higher gold values will it really
matter? If a person has the gold bullion that’s all that will matter. As
Alasdair Macleod said – If you’ve got gold, you’ve got money. If you don’t
have gold, you’ve got a problem. – that’s a fact right there.
U.S. Mint American Eagle gold coin sales collapse to weakest April
since 2007 giving contrarian value buyers another buy signal
Sales of U.S. Mint American Eagle gold coins dropped to their weakest
April since 2007, while silver coin purchases for the month rose 10 percent
higher than last year, U.S. government data showed on Monday.
The U.S. Mint sold 4,500 ounces of American Eagle gold coins in April,
down 25 percent from the year prior. However, April sales were up 29 percent
from March.
During April, spot gold prices rallied to a 2-1/2-month high of $1,365.23
per ounce as concerns over escalating tensions in Syria, U.S. Sanctions on
Russia and the U.S.-China trade stand-off weighed on stock markets and helped
to knock the dollar index to a two-week low against a basket of currencies. Gold Core
Two years ago during a July 2016 conversation with an independent market
analyst, he suggested we had reached an inflection point. It seems he was
spot on as the market has completely deteriorated from that time. Mining
output has completely collapsed, Pan American silver mine recently shuttered
operations and now we learn today the reality of Barrick Gold and their
collapsing gold mining output. It is impossible to dig something out of the
ground that either no longer exist, or the expense makes it impossible to
retrieve. The inflection point Eric Dubin referenced is laid bare for
all to see.
