Decline in Peru’s Silver Production, Future Supply at Risk?

The Peru Ministry of Energy and Mining just released their silver production data for February, and it was a whopper to the downside. Actually, I was quite surprised to see how much Peru’s silver production declined versus the same month last year. Also, Peru’s gold February production took a similar big hit. According to the Peru Ministry of Energy and Mining data, the country’s silver production fell 12% to 323.1 metric tons (mt) this February versus 367.4 mt the same month last year: This is a 44 mt decline in one month, nearly 1.5 million oz lost. Here is the […]

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Paper Markets Crack; U.S. Silver Supply In Jeopardy

The U.S. silver supply will likely be in jeopardy in the future when the highly inflated paper markets finally crack. This is not a matter of if, but WHEN. If we consider the top two precious metals and copper, silver has the highest net import reliance as a percentage of domestic consumption. According to the data put out by the USGS – U.S. Geological Survey, and the GFMS team at Thomson Reuters, the United States silver net import reliance as a percentage of total consumption, was 72%, versus 36% for copper and a negative 48% for gold: The USGS reported […]

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Keith Neumeyer: Precious Metals Manipulation; Supply Squeeze in Silver

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason. Coming up we’ll hear from Keith Neumeyer, founder and CEO of First Majestic Silver and outspoken voice on the manipulation that’s occurring in the futures market for silver. Keith weighs on the Deutsche Bank market rigging case, gives us his outlook for the metals under a Trump presidency and explains how silver’s gains in the future may end making the recent advance in zinc look like child’s play. I can promise that you will NOT want to miss an incredible interview with Keith Neumeyer, coming up after this week’s market […]

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The Great Physical Gold Supply & Demand Illusion

BullionStar Gold supply and demand data published by all primary consultancy firms is incomplete and misleading. The data falsely presents gold to be more of a commodity than a currency, having caused deep misconceptions with respect to the metal’s trading characteristics and price formation. Numerous consultancy firms around the world, for example Thomson Reuters GFMS, Metals Focus, the World Gold Council and CPM Group, provide physical gold supply and demand statistics, accompanied by an analysis of these statistics in relation to the price of gold. As part of their analysis the firms present supply and demand balances that show how […]

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Why “supply and demand” doesn’t work for oil

The traditional understanding of supply and demand works in some limited cases–will a manufacturer make red dresses or blue dresses? The manufacturer’s choice doesn’t make much difference to the economic system as a whole, except perhaps in the amount of red and blue dye sold, so it is easy to accommodate. A gradual switch in consumer preferences from beef to chicken is also fairly easy to accommodate within the system, as more chicken producers are added and the number of beef producers is reduced. The transition is generally helped by the fact that it takes fewer resources to produce a […]

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Deflating the Oil Glut: First Supply, Then Demand

They call it an oil glut for a reason. There is too much oil in the system today. The U.S. fracking revolution has added four million barrels of oil to the global supply per day. But that’s just the U.S., and that’s just since 2009. Since 1996, it’s gone up about 15 million worldwide. As the world economy has slowed, oil production has ramped up. How could that not end badly? The crisis has emerged in the past year as oil fell from $ 115 to $ 43. Even today’s $ 60 levels threaten to dismantle many oil producers. Most can’t […]

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