There Is No Gold Shortage: New Source Discovered (Joke)

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Somali Gold LetterWe are finding it necessary to clearly disclose that this post is a joke. The email we reference appears to be nothing more than a different version of the Nigerian Scam. Many other websites certainly received this email, and it should not be taken seriously. Really, did we have to post this disclaimer? Yes, sadly, we did.

PMBull received an email this morning (below) that puts to rest the idea that a gold shortage has been developing. Nevermind repeated instances of Negative GOFO, or significant withdrawals from the SPDR Gold Trust (GLD) by authorized participants, or the record imports of gold into China through Hong Kong. The email we received proves that there is plenty of gold available and that gold producing countries are in fact having difficulty finding buyers. So much difficulty that they are offering to provide samples of kilogram bars at what we presume to be “deeply discounted” prices.

Many die-hard gold buyers have also recently come to the conclusion that there is no shortage. After all, there must be a lot of gold to sell, given the quantity that has been dumped on the market to suppress prices, right? The debate in recent days has turned to where the gold being sold is actually coming from, and there are theories about that floating around out there. Continue Reading …

Gold Shortage Developing Again?

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Where is all the gold in the gold ETF SPDR Gold Trust (Symbol GLD) going, and why? Could we be looking at a developing gold shortage again?

Year to date, actual physical gold inventory in the GLD is down over 30%. Gold inventory in Sprott’s Physical Gold Trust (PHYS) is down only 1.3%. Further, silver inventory in the Silver ETF (SLV) is actually up 3%.

Hmmm… There is certainly a correlation between gold and silver prices. There is certainly a correlation between Spot Gold Prices and GLD’s price per share. And of course there is a correlation between the price per share of GLD and Sprott’s physical fund. This is expected.

Yet, there is no correlation between the actual inventory levels in these funds. Which leads us back to our opening question. Where is all the Gold in the gold ETF SPDR Gold Trust (Symbol GLD) going, and why?

Many don’t understand the relationship between the GLD, the bullion banks and COMEX, where gold futures are traded and spot gold prices are at least partially derived. Mr. Furguson over at TF Metals Report does.

In his latest public missive, Mr. Furguson puts together a variety of data to draw (prove?) a pointed conclusion about the status of physical gold supply:

“The GLD is being consistently and regularly pillaged by the bullion banks as they desperately search for gold to settle their obligations.”

  -Turd Furguson, TF Metals Report

You see, the GLD has something called “authorized participants” which are essentially the bullion banks (JPM, HSBC, etc.). These banks have frequently sold paper gold futures on COMEX. If the buyers of these Gold Futures demand delivery of actual physical metal in future settlement months, the banks have to come up with real, physical gold to meet those delivery demands. Continue Reading …

More Bullion Content Added: Buffalo Silver Rounds Page

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Buffalo Silver RoundAs part of our ongoing expansion of content in PMBull’s Physical Bullion guides, a new page dedicated to Buffalo Silver Rounds has been released. On this page, you will be able to view pictures, descriptions, reviews, mint notes, buying tips and recommended dealers.

As one of the most popular rounds, the Buffalo is the first in a series that will be addressed in more detail on PMBull, through our Physical Silver Bullion pages. PMBull visitors will be able to provide their own reviews, including video, as well as tips for buying, mint notes and images.

Visit PMBull’s Silver Bullion guide for tips on finding the best price dealers, or see our recently released Silver Rounds section, where we list some of the most popular dealer offers today. We will continue to provide more review pages for each individual silver product and note them here.

As always, you will still be able to view live, 24-hour Spot Silver and Spot Gold prices on each of their respective pages, where the most popular physical bullion products are listed, along with news and commentary on the precious metals markets.

We hope you like the information we provide and if you do, please drop us a note at our contact page, linked in the footer of this page. Stay tuned, as PMBull will continue to add more content and information on Gold and Silver markets and products.

Silver Rounds Guide Added to PMBull Silver Bullion

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Morgan Silver RoundMany PMBull visitors have made use of our silver bullion guide, where we discuss finding the best silver bullion at the best price, from top online dealers. The guide addresses basic coins, rounds and bars. PMBull also lists top daily silver dealer offers on its spot silver page. There, we try to present the best priced dealer offers on the more popular coins, rounds and bars.

Many PM stackers enjoy collecting silver rounds in addition to accumulating pure silver as an inflation hedge, or as insurance for an economic collapse, so we have decided to provide links to some of the better designs and mints in a standalone silver rounds guide. This section is linked from our primary physical silver bullion guide.

In addition to listing some of the better designs and popular mints, we discuss the differences between collecting rounds and investing in silver coins or bars. We also present good dealers for finding new silver rounds for your collection.

The number of silver rounds presented in this guide is currently limited, and may vary from day-to-day, as we find new selections that we think are worthy of consideration. We will be adding more mints and designs soon.

If you haven’t yet looked at PMBull’s guide to Silver Bullion, please do so, and check out the new Silver Rounds Guide while you are at it.

The Bernanke Bullard Bluff: The Return of Taper Talk

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Image of Rising PriceIs Bullard bluffing? Gold and silver markets reversed Wednesday’s No-Taper rally today after St. Louis Federal Reserve Bank President James Bullard threw cold water on the dollar dumping party.

In an interview with Bloomberg News this morning, Bullard reignited talk of taper when he said that October might still see a reduction in QE and that the vote this week to continue the $85 Billion in monthly bond purchases was a close one.

A week before the Surprise FOMC Decision on Wednesday, PMBull observed that all the talk of taper was missing an important fact. The economy was in no condition to justify an end to QE. We hinted that the Fed may be boxed into a corner, unable to stop the flood of easy money (didn’t Bernake also tell Congress that very thing?). Louis Cammarosano at the Smaulgld Economics and Real Estate blog provided a nice, concise background on current economic conditions, going into the Federal Reserve Open Market Committee meeting.

The Bernanke Bullard Bluff?

In a follow-up piece today, Louis says that Bullard is Bluffing with regards to October QE talk, in general agreement with our assessment that the Fed is trapped. In that Bloomberg interview that rocked the markets backwards again today, Bullard suggested that the vote was close with respect to the September FOMC statement, and we are now to be on the lookout for Taper in October. Louis observes that the vote was 11-1 in favor of leaving things as they are. Real close Mr. Bullard.