Prayers for POTUS as Record Bullion Demand Continues 2020

Shocking news last night, we learned that US President Trump and his wife Melania have tested positive for Covid-19.

Today, “Out of an abundance of caution, and at the recommendation of his physician and medical experts, the president will be working from the presidential offices at Walter Reed Military Medical Center for the next few days,” Press Secretary Kayleigh McEnany said in a statement today. 

At the start of this video, you can see footage of the Marine One helicopter, which transferred President Trump from the White House to the hospital shortly after 6:15 p.m. ET today, Friday, October 2nd, 2020.

Senior White House reporter for Bloomberg News added the following points on twitter.

We hope and pray for a speedy recovery for both the First Lady and our President of these United States.

This week we will run through some updated fundamental supply demand driven charts for physical gold and silver.

We'll also hear from another billionaire making his first foray into gold at a late stage in life. 

Both gold and silver rebounded somewhat from healthy selloffs to close late last week.

Up next, how about a look at the newly chosen backside or reverse coin designs for the 1 oz American Gold Eagle bullion coin and 1 oz American Silver Eagle bullion coin, respectively, announced this week by the US Mint?

We have written on the SD Bullion blog about this upcoming American Eagle bullion coin redesign. The redesign’s primary motivation revolves around infusing anti-counterfeit technology within the bullion coins to thwart the threats of further fake Chinese counterfeit coins hurting would be bullion buyers.

Expect the redesign release will be slightly delayed due to the ongoing viral crisis. For the year 2021, the bullion industry will begin the year with the old classic American Eagle Silver and Gold bullion coin designs. 

Only to switch out with the new anti-counterfeit designs by late spring into early summer 2021. The rumor is May 2021 is when the US Mint is targeting to make the new coin redesign launch. Regardless of what exact month the switch happens in 2021, it will likely be the only year in which this bullion coin has two distinct designs issued.

Keep in mind too; these are merely artist drawings; how they will ultimately look in 22k gold and .999 fine silver in one's hand will be different than these two-dimensional reverse bullion coin redesign renderings. 

I will wait to see them in my hand before judging whether the new design is subjectively more superior. I will certainly enjoy the peace of mind new anti-counterfeit technology not unveiled yet.

Here is fiat Federal Reserve note purchase volumes annually from the start of the bullion coin program in 1986 until thus far now into this year 2020. 

Gold bullion coin buying exploded this year, while dramatic price premium increases and production bottlenecks hampered silver bullion coin sales. Learn about why Silver Eagle coins are so expensive and about Silver Eagle coin price history.

The theme of billionaires running to gold and silver as both a safe haven and beta monetary mayhem bets continue.

This past week, we learned billionaire Leon Cooperman admitted in a recent Real Vision interview recorded last Friday, September 25th, 2020. That he has made his first financial career foray into gold. He stated the following.

His anecdotal admission jives with the relatively new but now continued massive physical US gold import data.

Gold Silver Short Squeeze May Become Almighty 7/31/20

We still see one hundred plus tonnes of gold bullion flow into the USA nearly now every month. The great majority of it comes from Switzerland (where the world’s largest gold refiners are).

As we look at modern-day physical gold bullion buying nations of China and India, they have yet to fully return to their typical gold buying volumes pre viral crisis.

It remains evident that the west is still leading the charge for more physical gold demand.

You can see that in terms of both physical gold troy ounce demand and investor fiat cash flows, only now three-fourths of the way through this wild year 2020, all other years prior in this 21st Century have been dwarfed by gold investor interest. 

Turning to silver, the industrial demand for physical silver in China has hardly slowed as they manufacture a significant percentage of the world's solar panels and electronic gizmos.

India has fallen off big time in its viral crisis 2020 silver demand and wedding season shutdowns.

Looking at transparent silver investment demand in this 21st Century, we see a similar dwarfing supposed only three-quarters of the way. This year, over 356 million oz of silver bullion has supposedly gone into ETFs, Funds, and Exchanges. Already more than two times the size of any year's flow this century. 

In terms of the fiat value of this massive flow, it is around $6.7 billion at the moment. Gold fiat fund flows have been over 14X the amount of silver thus far in the year 2020. And on a troy ounce basis, the 2020 gold vs. silver transparent troy ounce ratio runs over 6 oz of silver versus one ounce of gold.

The spot price markets are currently telling us the gold-silver ratio is right around 80. 

Like many of you out there, I will keep holding my silver bullion knowing the gold-silver ratio history calls for a coming collapse, which should take us nearer to six than eighty. 

That is it for this week, prayers for the First Lady and President Trump. 

Until next time, take great care of yourselves and those you love.

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James Anderson
James Anderson
Senior Market Analyst & Content

A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.

Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades...