Summary
- The update highlighted that US debt has increased 42 times since Q1 1980, while gold prices have only increased 3.4 times during the same period.
- Luke Gromen appeared on Tucker Carlson's show discussing the macroeconomic case for bullion investment and questioning Fort Knox gold reserves.
- The platinum market is showing signs of partial backwardation, with spot prices lower than forward futures prices, indicating supply tightness and strong demand.
- Approximately 400,000 oz of platinum have flowed into NYMEX warehouses since December, similar to patterns seen during the 2020 Covid era.
- Historical precious metals ratios were discussed, noting that in 1968, platinum was priced at over 10 times the value of gold, compared to today where gold is priced higher than platinum.
- Since 1968, gold has outperformed platinum by a factor of nearly 30 in their respective historical price ratios.
- The spot silver price closed at $31.12 per oz while gold closed at $2,857 per oz, with the gold-silver ratio climbing to nearly 92.
- Gold has been trading above its 200-day moving average (currently around $2,600 oz) for approximately a year, with the presenter questioning whether gold will break $3,000 oz or retest its moving average.
- The update mentioned a Citibank error where a client's account was accidentally credited with $81 trillion instead of $280, highlighting issues in our "fiat-financialized world."
We're going to start this week's Bullion Market Update tour with Elon Musk who visited The Joe Rogan Podcast today, one of the world's most popular and widely consumed young male demographic podcasts in the Western world.
Joe Rogan Experience #2281 - Elon Musk
https://youtu.be/sSOxPJD-VNo?si=IYILtZgthbEN0M6_&t=159
We'll begin with some grade school locker room humor and then sober up with what much of what the developed world is now facing forward.
At the end of last week's Bullion Market Update I flashed this US gold reserve historical price value data going back to Q1 1980, when the gold price peaked at over $850 oz covering about 25% of the then outstanding US debt at the time which was roughly only $863 billion at the time.
Our hard US debt levels have since ballooned 42Xs in size to now in Q1 2025. The gold price at the moment has only 3.4 folded since the last time US debt markets got dragged to the golden revaluation wood shed.
We're not just talking about our ballooning US debt here though.
The larger unaccounted for mess to come is the extremely large unfunded liability piles which depending on the net present data you choose to source is multiples larger that the record US debt pile to now and to come.
It's buzzkill time kids.
Thanks for the update Elon and Joe. I'll take the bullion and leave the hopium for others.
Moving on to another of this week's major media gold related podcast tours, Luke Growmen went on The Tucker Carlson show and did an eloquent job explaining the macro case for prudent bullion investment holdings moving forward for investors.
I'll leave a link to the full one and half hour show in the show notes below in case you missed it this week.
Luke Gromen: Why the CIA Doesn’t Want You Owning Gold, & Is Fort Knox Lying About Our Gold Reserve? https://youtu.be/fxWZO0FEQ1g?si=ZeTxAyE3_MASLXmo
Here is a clip using current data and factual documents backing a few of Luke's statements from that podcast early this week.
Lease rates in the London gold market have finally fallen. Shortly we'll look at Platinum which appears to be in partial backwardation, but before we do London gold establishment spokesman Adrian Ash crystalized how flimsy the idea of filling the US Treasury general account with funds to spend from potential revalued US gold on the books given our current out of control deficit spending situation.
Turning to partial backwardation beginning in the global Platinum market.
The current platinum spot price is lower than many of the forward platinum futures price points which is considered a bullish sign of supply tightness and strong demand for underlying platinum bullion inventories.
CME Group COMEX gold silver warehouses are not alone with increased inflows of bullion inventories state side. About 400,000 oz of platinum have flowed into NYMEX warehouses since late last year December to now.
The last time something similar to that occurred was during the 2020 Covid COMEX NYMEX bullion inflow era. A rapid drain of those platinum inventories followed in 2021 and 2022 with the vast majority of those platinum bullion ounces pulled shipped off to China.
You might think Gold being priced recently 3Xs the current price of platinum is a historic record, but if you go back to the late 1800s when we still did not fully understand platinum industrial applications there were moments in time when gold far out-priced platinum.
But I want to show you how crazy the gold platinum ratio has swung within the lifetimes of our most senior viewers here.
If we swing back to the start of 1970, with gold still at a suppressed price to start the decade of just over $35 oz, the price of platinum was to begin that decade 5 times the price of gold.
Just go back to 1968, the year the then London Gold Price Rigging Pool failed. There was a time in 1968 where the then price of platinum peaked at over 10X the suppressed price of gold.
Of course, the 1970s and early 1980 was a commodity bull market with a debt and monetary crisis lacking accounting for US profligate spending at the time. Gold and silver multiplied by more than 24 and 38 fold respectively in spot prices throughout that bullion bull market.
Platinum historically outperforms after gold mania phase peaks as it did in March 1980.
But the key point here is just how silly relative precious metals ratios can get in these full fiat currency era 'price discovery' markets.
From 1968 until now gold has outperformed platinum via their respective historical ratios by a factor of nearly 30.
Platinum might be in backwardation, but it needs to break out above 1,100 oz and higher before platinum bulls can begin hoping that ratio might be finding its peak anytime soon.
Hello there, this is James Anderson on behalf of SD Bullion for your weekly bullion market update.
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Before we continue with this week's bullion price action, a quick reminder about SD Bullion's new IRA streamlining service offering.
The spot silver and gold prices finally both sold off this week.
The spot silver price closed at $31.12 oz bid while the spot gold price finished at $2,857 oz bid.
The spot gold silver ratio climbed to nearly 92 to end this week.
For the last year or so the gold price has been rising, levitating well above its ongoing 200 day moving average which is currently closing in on $2,600 oz at the moment.
The short and medium term question I am pondering is whether gold pierces $3,000 oz nominally in this run or will it require a retest back toward its 200 day moving average before bull marketing higher later on.
The current 200 day moving average for silver is at $30.70 oz and climbing. We will see if that support can hold in this current sell off.
A headline from today illustrating just how silly a fiat-financialized world we live in, FT reports that Citi bank recently accidentally credited a client's account not with the $280 fiat dollars they were owed but with a brief accreditation of $81 trillion. Of course this human and organizational operations error was rectified within the same day, and even that amount of fiat currency wouldn't extinguish our growing US debt and unfunded liability piles either.
This past week, I was interviewed by SGTReport which is no longer on youtube, so here are a few highlights from our more than one hour discussion.
That will be all for our weekly SD Bullion Market Update.
And, as always, to you out there.
Take great care of yourselves and those you love.
