Monthly Archives: September 2014

This week, Chuck Jeannes told The Wall Street Journal that either this year or next, miners will have reached “peak gold.” Peak gold means that the amount of gold being pulled out of the earth will begin to shrink every year, rather than increase, which has been the case since the 1970s. Jeannes is the chief executive of the world’s largest gold mining company, Goldcorp, so it’s probably safe to assume he knows a thing or two about mining the yellow metal.

Let’s put this into context. Central banks continue to stockpile gold (even Scotland is wondering how much of the United Kingdom’s gold it will get if it becomes an independent country). Nobody knows how much gold China is hoarding, but pretty much everyone assumes it’s a lot more than the official reports. Smart economists like Peter Schiff and Jim Rickards have been pointing out for a year now that gold buyers throughout Asia are accumulating more and more gold from Western investors, and they have almost no intention of selling it.

For physical precious metals investors, all of this news should hit home. What happens when this robust demand for gold runs up against the hard limits of the mining industry? This is simple supply and demand – prices go up.

“As gold production declines, the miner’s job becomes harder, as companies compete for increasingly rare deposits. Discoveries have already tapered off. In 1995, 22 gold deposits with at least two million ounces of gold each were discovered, according to SNL Metals Economics Group. In 2010, there were six such discoveries, and in 2011 there was one. In 2012: nothing.”

Read the Full Article Here

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The Silver Institute’s August edition of Silver News is now available. This issue explains the fundamentals behind the surging growth in demand for industrial silver, which is expected to exceed global GDP growth through 2016. The constantly evolving industry for silver technology is largely to thank for this increasing demand. August’s Silver News highlights some of the fascinating new applications of silver, including:

• Two forms of 3D printing with silver
• Using heated nanosilver to treat cancer
• Screen-printed silver circuits that cure in UV light
• Antibacterial silver on home hardware products

You’ll also find an explanation of how silver is used as an essential chemical catalyst in the production of ethylene oxide (EO), which in turn is needed to create ethylene glycol. Ethylene glycol is one of the most important substances in our modern world.

“Ethylene glycol, in turn, is used to produce many products including polyester fibers for clothes and carpets, plastics, solvents and other chemicals, and even antifreeze formulations. By itself, EO is used to sterilize many health-care products and medical instruments, including delicate electronic or optical tools, which would be harmed by the high heat or radiation sterilization processes. EO is also used to accelerate the aging of tobacco leaves, as a fungicide, and even as a preservative for spices.”

Read Silver News Here

Image: Tanaka’s printed silver circuit board.

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Interested in learning about the best ways to buy gold and silver?
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The financial media regularly plays down reports of consumer price inflation that are much higher than the official numbers. Even worse, analysts generally argue that more inflation is needed for the health of the US economy. Pippa Malmgren, author of a new book, Signals: The Breakdown of the Social Contract and the Rise of Geopolitics, has been studying price inflation that is cleverly hidden – she calls it “shrinkflation.”

Shrinkflation occurs when consumer products cost the same, but contain less. For instance, Malmgren points to Cadbury chocolate bars that were reduced in size in 2011, while the price remained the same. Nestle’s Shredded Wheat and Carlsberg beer are two other major products that are practicing shrinkflation. Haagen-Dazs shrunk its “pint” of ice cream by 20% in 2011. Here’s an entire list of shrinkflation products published by CNN Money three years ago. Peter Schiff has talked about this very phenomenon in his videos and podcasts for years.

The financial media will likely downplay this trend in favor of broader, “official” measures of inflation that show prices are well under control. However, they’d be missing one of Melmgren’s most important insights: “Shrinking the size of goods is exactly what happened in the 1970s just before inflation proper set in.” At a certain point, a company can’t just keep lopping squares off the chocolate bar – they’re going to have to raise the price.

Remember, if there’s one thing you want to be holding when inflation really hits hard, it’s physical gold and silver bullion.

Read the Full Article on Shrinkflation Here

Follow us on Twitter to stay up-to-date on Peter Schiff’s latest thoughts: @SchiffBlog
Interested in learning about the best ways to buy gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!