International Gold Wars

Over the past few months we have witnessed a precious metals market that has acted like a out-of-control child. Wild mood swings to the positive, followed by swings to the negative. This is to say nothing of the fact that the U.S. Mint sold out of American Silver Eagles on July 7 and halted sales. The first of August saw the U.S. Mint offering Silver Eagles once again; however, the authorized dealers couldn’t simply call them and order as many as they would like due to the fact the sales were now being rationed. The Mint uses the word “allocated,” but that is simply cover so the masses don’t catch on and begin to understand that silver, a monetary metal for thousands of years, is now running short.

We learned that during this time other government and private mints around the world were selling out of silver coin stock as well. Once all the current stock had been mostly purchased everyone began purchasing gold coins and bars. These mints began recording unprecedented sells of gold during the month of July 2015.

Just as all of the buying, primarily at the retail level, is beginning to blossom, China announced an increase in their gold holdings. It was the first announcement from China regarding their official gold holdings in six years. This was quickly followed by a second announcement by China of additional gold holdings. The second announcement was much smaller and most everyone began questioning why this second announcement happened.

Enter the Dragon into the Gold War Arena.

The Russian Bear and India’s Farmers have been in the arena for many years. These two countries have reported their international gold purchases on the open market month-after-month for many years. China has not been participating in the open market as they have not been announcing their monthly purchases of gold from the open market … until the week of August August 10, 2015.

The international gold market should now be at the forefront of every goldbug’s mind. With China officially purchasing gold on the open market we now see a major shift in her game plan.

Jeff Nielson breaks all of this down for us in the following interview. If you have even a passing interest in what is happening with the money in your wallet, you should give this a listen. It was not by chance the recent events of currency devaluation by the Chinese happened, which was quickly followed by the second announcement of gold purchases.

The audio only version is available unedited, without ads, for download or stream at silverfarm.podbean.com or search iTunes for Silverfarm.