Summary
- The US government's Bureau of Labor allegedly misled the public by reporting a -34% year-over-year decrease in healthcare costs, despite ongoing issues in the economy.
- Despite a perceived lower inflation rally in the stock market, there are concerns about high government deficit spending, escalating debt levels, and a significant amount of debt maturing in the next year with elevated interest rates.
- Inflation has been integrated into the economy over the past three years, impacting the US consumer-driven economy.
- Fractional gold and silver bullion piles supporting the COMEX have decreased over the last three years, with data suggesting that bullion is being withdrawn from unsecured ETF piles to maintain the physical delivery system.
- The US retail bullion buying sector has been actively purchasing bullion, despite being a small portion of the overall US investing public.
- Global silver industrial demand is expected to reach a new high in 2023 due to increased demand in solar panels, power grids, 5G networks, auto electronics, and other infrastructure inputs.
- Ongoing issues in the mining sectors of Mexico and Peru, the largest silver-producing nations, are anticipated to lower overall silver supply in 2023 compared to the previous year.
- India imported over 1,750 metric tonnes of silver in October 2023, with more than half coming from London. India has also imported a significant amount of gold bullion, indicating strong demand despite rising prices.
- The blog emphasizes the importance of owning precious metals like gold and silver as a hedge against economic uncertainties and potential bank failures.
- Concerns are raised about the US banking system, citing that banks took out more loans in spring 2023 than during the 2008 Global Financial Crisis. The FDIC, responsible for bank backstopping, reportedly has limited reserves compared to the total insured deposits, with potential risks associated with uninsured deposits and the ongoing layoffs at Citibank.
Misleading Healthcare Statistics
This week the US gov't Bureau of Labor and rigging of ongoing statistics collectively lied to everyone by claiming healthcare costs were down -34% year over year.
Stock market bulls celebrated on the delusional lower inflation rally yet many damning fundamentals continue unabated.
More historically high gov't deficit spending and seemingly out of control debt levels are building.
With a large amount of this debt maturing in the next year all with elevated interest rates at the moment.
As inflation over the last almost 3 years is already fused into the system crushing the US consumer driven economy.
Bullion Dynamics and COMEX Drawdown
Meanwhile over the last near 3 year time span we have seen the underlying once ballooned piles of both fractional gold and silver bullion piles backstopping the COMEX drawdown one half and one third respectively.
Data illustrates that much of this bullion has been getting sucked out of unsecured ETF piles to keep the leverage just in time the physical delivery system propped up.
Good news is that the conscious US retail bullion buying sector has been getting after it this whole time, buying high levels of bullion relative to how tiny and overall population they are of the US investing public.
Global Silver Industrial Demand Surge
Meanwhile on the silver demand side of this year's updated estimation, it was announced this week that global silver industrial demand is set to shatter the all time record citing increases in demand for:
- Silver in solar panels
- Power grids
- 5G networks
- Auto electronics
- And other infrastructure inputs
US Silver bullion investment demand is still strong with bank failures from last spring 2023 propelling the year's demand (Source)
Global Silver Industrial Demand Forecast to Achieve New High in 2023 (Source)
Global silver production set to fall in 2023 due to lower Mexican, Peruvian output (Source)
Ongoing mining sector issues this year in the largest silver producing nations Mexico and Peru are also set to lower overall supply in 2023 vs last year 2022.
Remember how last week I showed you that both gold and silver bullion had been getting sucked out of London stockpiles?
The 140 tons of gold that left London could all be ongoing central bank buying... but that amount of silver we suggested had to be India bound.
Perhaps the eastern silver buying giant has awoken from its 2023 nap?
India's Significant Silver and Gold Imports
Turns out that and more was bought by India last month October 2023. Over 1,750 metric tonnes of silver or just over 56 million ounces was imported into India last month alone.
Just over half of that pile came out of London admitted this week by Metals Focus reports.
Last month India also imported its largest amount of gold bullion since the early 2021 price dip buying spree.
And even with local gold in fiat rupee prices up over 32% since early 2021, Indians are still buying gold in large volumes suggesting the positive feedback loop of a gold bullion bull is building further.
For a bit more coverage on Indian gold bullion demand here is Palki Sharma this week from Firstpost's youtube channel:
Choose investments and prudent allocations that help you sleep better at night indeed.
For as we look at this long term monthly gold price chart in fiat US dollar terms, it certainly appears that we are not from the next stair stepping events propelling us collectively higher.
On the other side of this coming short break we are going to dig into increasing reasons why owning bullion outright against the threat of more failing banks is a no brainer in a world increasingly being exposed as bankrupt.
You definitely want to own positions in precious monetary metals which historically thrive in such situations.
All metals mined in 2022 (Source).
Both silver and gold showed strength respectively trading higher this week.
The spot silver price closed just under $24 oz bid price while the spot gold price closed just shy of $2000 oz bid price.
The spot gold silver ratio dipped sharply on silver's outsized strength falling nearly five ounces to 83.
Before we get into the recent fifth US bank failure for the year. I would like to alert viewers out there that we kicked off Black Friday week ahead of time today with this low premium deal on silver bullion kilo bars. Visit www.SDBullion.com/deals to get your share while supplies last.
US Banking System Concerns
Now onwards to yet another bankrupt bank but this from 11 days ago tied to leveraged collapsing economic bets coming undone.
Federal Government takes over failing Iowa bank:
The website WallStreetOnParade pointed out a few important points about the still failing US Bank system this week.
It was recently reported that US Banks took out more loans in the spring of 2023 than they did during the 2008 Global Financial Crisis.
Meanwhile the supposed US Bank backstopping FDIC has less fractionally reserved cash than the hyper-leverage COMEX system has in supposed bullion for potential delivery.
The FDIC reportedly only has $117 billion to backstop all 4,622 US Banks and their currently estimated total of over $10.5 trillion in insured deposits.
There is an estimated nearly $7 trillion in uninsured deposits sitting in US Banks beyond the $250,000 per account insured threshold at the moment.
Reportedly over $1.4 trillion of that is sitting with recidivist criminal commercial bank JP Morgan. Good luck.
Lastly, having already lost over -92% of its stock price nominal value since the start of the year 2007, it was announced this week that mass layoffs at Citibank are starting next week with up to one tenth or nearly 24,000 employees getting eliminated.
Meanwhile, relative weakness in the fiat US dollar and coming future bank failures strongly suggest that more US citizens and investors should begin allocating to bullion before it becomes more unaffordable and potentially unobtainable in size at reasonable price points.
For in building the bullion bull mania phase ahead, my strong suggestion is that the near $2000 oz gold consolidation we have been in will be looked back upon as a would have, could have, should have era.
That will be all for this week's SD Bullion Market Update.
As always to you out there.
Take great care of yourselves and those you love.
