BIG QUESTION: Why Are Gold/Silver Prices Falling Despite Demand?

Why Are Prices Falling While Demand Is Rising?

Gold and silver bullion investors might reasonably assume prices have a lot to do with physical supply and demand. On a day-to-day basis, they don't. If they did, prices would be much higher.
Chinese Gold and Silver Demand Chinese gold and silver demand
is through the roof.
Consider the extraordinary demand for physical silver. It is setting another record in China where silver imports, which account for a fifth of world consumption, are up 36% through October. The story is similar in India, another of the largest markets in the world. And government mints are struggling mightily to keep up with record demand for gold and silver bullion coins. Meanwhile, lower and lower prices continue to devastate the mining industry tasked with providing supply. Inventories are dwindling because crippled mining companies aren't keeping up. COMEX gold inventories sit at record lows, with just a few tons
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Metals Market Setting Up for Trend-Changing Short-Covering Rally

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason. Coming up we’ll hear from our good friend David Smith, Senior Analyst at The Morgan Report and regular contributor to  David touches on some key events and potential developing scenarios in the metals markets right now… including the potential for a default on the exchanges, the possibility that the stage is being set for a massive short covering rally in silver futures, and how much longer the market can withstand massive physical demand in the face of an ever-constricting supply.  Don’t miss an incredibly important and informative interview with David Smith coming up after this week’s market update. Well, as terror alerts are raised around the world, investors appear to be more focused on the signals that are being sent by the oil market.  Crude oil prices are plunging this week to their lowest levels
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Extreme Leverage in a Gold Futures Market Nearing the Breaking Point

The metals markets rallied strongly on Friday – action which came as a surprise to many. The gains snapped a 6-week losing streak for gold, silver, and platinum. Prices rose despite a stronger-than-expected November jobs report raising the odds the Fed will hike interest rates later this month. Perhaps silver and gold futures finally caught a safe-haven bid on news of the terrorism-linked shooting in Southern California. Or perhaps it was a relief rally based on metals being heavily oversold and investors realizing that a quarter percent Fed rate hike may already be “priced-in.” Especially given that Janet Yellen stood out front last week and downplayed the significance of raising rates. She wants investors to expect lower average rates than we've seen historically and to know a decision to hike in December does NOT necessarily mean more rate hikes will follow. Or maybe, at last, the gold shorts are
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European Central Bank Slashes Rates to Ridiculous Negative Levels

Welcome to this week's Market Wrap Podcast, I'm Mike Gleason. Coming up we'll hear another great interview with Michael Rivero of Michael gives us his candid commentary on a range of issues including how the Syrian refugee crisis could lead to trouble for the U.S. dollar, the likelihood of a coming economic collapse and whether or not it's time to buy or sell precious metals. Don't miss another explosive interview with Michael Rivero, coming up after this week's market update. Well, it's been quite an eventful week, so let's get right to recent developments. A big market-moving employment number came out today. And market volatility already picked up on Thursday in the aftermath of a mass shooting in California and an interest rate cut in Europe. The European Central Bank announced a package of new stimulus measures, extending its massive bond-buying program until March 2017. The ECB
Michael Rivero Interview
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Treasury Secretary Makes Sad Admission about Coinage Devaluation

Traders are bidding up the U.S. dollar and dumping metals as they become more convinced that the Federal Reserve will raise interest rates at its next meeting. Janet Yellen and company have been talking about raising rates for the better part of a year, though. All talk and no action so far. Will they finally hike or keep crying wolf? We'll find out when the Fed meets on December 15-16. In the meantime, the long-dollar trade is getting crowded. Bullish bets on the U.S. dollar in the futures markets have more than tripled since last month, according to Scotiabank. The U.S. Dollar Index now trades right near the 100 level, matching its high point in March. The buck may encounter some technical resistance in this area. If it pushes through, momentum could accelerate to the upside. On a fundamental basis, dollar strength is little more than the
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Gold & Silver under Attack as Leverage Reaches Extremes

Welcome to this week's Market Wrap Podcast, I'm Mike Gleason. During this special Thanksgiving week edition of the program we're going to do something a little bit different and share with you an enlightening and spirited interview our friend David Morgan did with Sean Kerrigan of the SGT Report recently. David and Sean answer the question on seemingly every precious metals investors' mind, which is how much longer can the manipulation in the metal markets go on? Don't to miss this special interview with David Morgan of The Morgan Report coming up after this week's market update. Today millions of shoppers are partaking in the great American tradition of heading out to stores en masse in search of holiday deals. But they aren't likely to find any bargains as compelling as physical precious metals. That's because gold and silver spot prices have been marked down to multi-year lows. Prices are
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If You’re Out of the Room, You’re Out of the Deal

There's a saying in the resource sector investment community regarding whether or not a person might be privy to a good private placement or the inside scoop on a company that's working on a lucrative gold or silver project. The saying goes: “If you're out of the room, you're out of the deal.” As the day comes closer when the precious metals turn to the upside in earnest – well before the public mania phase alerts everyone on the planet to the potential – we could confront an event which moves the precious metals upward so quickly and violently, that people don't have at least a core holding beforehand will be left standing at the proverbial station. That train might not just pull away, but instead launch down the rails like a rocket. Responding to First Majestic's decision to stockpile, rather than sell at low prices, some of its
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Trouble Is Brewing in the Paper Markets for Gold and Silver

Precious metals bulls question why metals prices keep falling in the face of what appears to be strong demand and great fundamental reasons for prices to move higher instead. The bears have some answers of course. You can't eat gold, it's basically a pet rock, and modern financial systems are doing just fine without anything as antiquated as bullion gumming up the works. The bears are declaring victory and saying the market has spoken. They ought to look a bit deeper into recent developments. Outside of the price action, there is very little to support claims that gold and silver are relics of the past.
"Just one ounce of registered gold now backs nearly 300 ounces in COMEX contracts."
Lately, the real answer to the bulls' question about why prices are headed lower isn't the stuff of a lengthy philosophical debate. These days, the answer seems to be a
Gold COMEX Chart
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New Concerns Emerge about Availability of Gold in Western Vaults

Welcome to this week's Market Wrap Podcast, I'm Mike Gleason. Coming up we'll hear a fantastic interview with Bill Holter of and the Holter/Sinclair Collaboration. Bill tells us about the implications of dwindling precious metals production in the face of what he believes will be massive worldwide demand. Also, how you'll know when it's “game over” for the dollar. Don't miss an incredibly important interview with Bill Holter, coming up after this week's market update. The gold and silver markets are trading around some critical price levels this week. After dipping to new lows for the year and the lowest levels since early 2010 on Tuesday, gold stabilized Wednesday and closed Thursday back slightly above the $1,080 level. The $1,080 level is significant because that's where gold bottomed in August. As of this Friday morning recording, gold prices come in right at $1,080 an ounce, registering a small
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Download Your Free Copy of <i>Money Metals Insider</i> NOW! (Nov-Dec 2015)

More freebies for you! We're pleased today to grant you access to the November/December issue of Money Metals Insider – a FREE benefit for you, our valued reader. Please check it out right away. It's jam-packed with some product announcements, commentary on the markets, and important updates about threats to your financial security and freedom. Gold and silver are at 5 and 6 year lows, but technicals suggest the metals are quietly gathering strength. We give you the inside skinny. Here's a sample of what you'll find inside your November/December 2015 newsletter:
  • Gold and Silver Markets Quietly Gather Strength
  • Australia's Silver Kangaroo Challenges American Eagle Dominance
  • Precious Metals IRAs: A New Retirement Savings Trend Emerges
  • Probing Questions from Our Readers
  • Seven Biggest Lies Told (and Believed) about Gold
So download the PDF of this fantastic free newsletter right now and even pass it around to your friends! It's just another
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