Bullion Demand Still Unprecedented !

• Bullion Demand Still Unprecedented ! 
  by Bill Holter, http://blog.milesfranklin.com/ 
  “Bullion demand still at unprecedented levels.”  Yes, demand from the U.S. Mint (and every other mint and refiner) was very strong going into April.  We all know what happened then and have watched as global demand has soared because the “price was too low.”  Of course, if you listen to Bloomberg or CNBC they will tell you that gold has been sold off because it’s “just not safe anymore.” It’s in a bear market, only barbarians would invest in it and the smart money has already panicked out…as should you too.
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  But here is a quote from acting director of the U.S. Mint, Richard Peterson:
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  Demand right now is unprecedented. We are buying all the coin (blanks) they can make. –Reuters.com, June 5, 2013
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  Hold on now…let’s take a look at this quote a little closer.  “We are buying all the coin blanks they can make?”  Really?  So if they are buying every blank that can get their hands on…then why have there been shortages this year?  Why has the mint had to suspend sales several times?  “Buying every blank that they could get their hands on”…Was apparently not enough?
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  Actually, a better question would be, “If demand is so great and the U.S. Mint is buying every single blank that they can, then how is it possible that the price went down?  Not just down mind you, down as in a ‘panic “down?”  I’d like to remind you (and preface what I am about to say) that the “law” here in the U.S. is that the mint MUST buy as much silver and as much gold as necessary to meet demand and this supply must come from U.S. mines.  Now, I seem to remember that for the first quarter alone, the mint sold as many (I think actually 1,000 ounces more) Silver Eagles as all tallied silver production that came out of the ground from U.S. mines.  So in plain English, the mint sold more Eagles than the mines produced metal in the 1st quarter.
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  Now, not to disparage Americans but the Chinese and Indian population make us look like absolute “pikers” when it comes to buying gold and silver.  In fact, it looks like China and India are so far this year (and we don’t even have numbers yet for April or May when the demand really exploded) likely to consume MORE THAN 80% of the entire world’s production, where is the metal coming from?  COMEX?  LBMA?  Ah yes, GLD!  I would say as an off the cuff comment, once the “bleeding” stops and GLD doesn’t report much more in the way of “deliveries” the barrel will be dry.  I say this because once the deliveries stop, my guess is that what they have left in “inventory” will be of the “flammable” type.  “Gold” as in receipts and paper promises.
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