Lear Capital: Debunking the Gold Bunk from the “Ex-Spirts”

  on April 18 2013 9:06 AM
Gold Ingots
Gold Ingots. Reuters

To listen to the experts, pronounced (Ex-Spirts), regarding the recent drop in gold prices, you have to first consider the source.  So let’s define expert.  “Ex” means has-been.  And “Spirt” is really just a drip under pressure.

That said, we hear expert after expert talk of Gold as though no one wants it anymore.  It’s finished as a safe-haven, it’s finished as an alternative currency and according to George Soros, only central banks will keep buying.  Now that’s a mouth full.  The only people who want gold anymore are central banks.  I guess that proves it.  When the people who print money would prefer gold in lieu of the money they just printed, that’s a sure sign of the end of the gold era.  @AHHBullTweet.

In my opinion, if you really want to know who’s buying gold, and silver for that matter, go to the people who sell it and learn the truth.  Who better to use as a gauge than the U.S. Mint itself.  Breaking reports tell us the U.S. mint is on pace for record gold sales in April as more than 50,500 ounces of the Gold American Eagles, have already been sold month-to-date.  (This number already outdated.  I can’t write fast enough)  Put in perspective, sales for the entire month of April 2012, were 20,000 troy ounces.

Now, these are average investors, with a couple exceptions.  They understand Central Bank motives for stockpiling gold.  They also understand that the recent price drop was not in the physical market but in the paper market.  Whether you believe in manipulation or not, you know it’s easier to trade larger volumes in the futures markets than it is in the physical market.  I mean for crying out loud.  Germany has asked for their gold back and reports tell us they can’t get it.  Do you think they will take printed money in lieu of their gold.  (More on that later in the week)

U.S. Mint silver demand is also soaring, causing the mint again to suspend sales of certain silver coins.  That’s three times this year and we’re only half way through the fourth month.  And just to add a little wonder to the circulating bunk, Apple shares are down, supposedly due to supplier issues.  Is it the silver shortage, as reported 2 months ago, that’s at the root of supplier issues?

Just imagine if it was.  Imagine, that gold demand really is skyrocketing, contrary to all the bunk.  Imagine that the silver shortage is real.  Imagine Central Banks, in the end owning all the gold leaving your paper money more worthless than a used sheet of Bounty.

Next time you hear the gold bull market is over, please consider the source and don’t take my word for it.  I’m no expert.  I’m just one of those guys who always has the opinion that raises the question.  @DaveTheGoldDr

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