In Andrew Hoffman’s latest video blog, Andrew explains how the dollar had exploded from .85 to .92 on Thursday January 8 while the 10 year bond had completely recovered from it’s bombed out bunker of 1.84 after dropping from 2.18. The 10-year bond was sitting comfortably at 1.931 Monday January 12 approximately 9:30am Central time.
We begin our visit taking a look at the commodity and equities markets. On Monday, January 12, 2015 they had both fallen off a cliff. The DJIA had dropped $146 in the opening hour of trading. Crude oil had dropped over $2.00 a barrel while gold was up approximately $9 an ounce and silver was up approximately 15$. This is where Andrew first mentioned the “world falling apart” and with good reason. If you follow the markets and you follow the unemployment numbers–they go hand-in-hand in my opinion–then you know the unemployment numbers from Friday January 9 were a complete joke. Once you drill down, just slightly below the surface, you begin to see the actual numbers and not the numbers designed to get Steve Liesman over at CNBC giggling like a little girl and tell everyone about the rainbow-spewing unicorns that greeted him this morning.
The first in-depth portion was regarding food cost and if food cost would go down, as we were told, at every turn I might add, that food cost were going up because the price of oil was so high. This lie, I’m sorry, propaganda, sorry again, this information was supposed to ease our worried minds about inflation. Inflation is raging in food cost and Andrew gives several reasons for this and also explains that some food products are actually decreasing in cost and explains the reasons for this as well.
We quickly move to Europe where Greece is back in the news and it appears will remain in the news for the next several weeks, if not months. The Syriza Party is probably going to win the election and throw out the current regime of “technocrats” that are all graduates of Goldman Sachs and were never elected in the first place. The boneheads that have been in office handed over several hundred billion Euro’s of bonds to the Germans and the ECB. The Syriza Party has said they will not pay and have told the people of Greece they will simply default on the loans and leave the Euro. This is going to create a mess for the short term, but will allow Greece to regain its sovereignty and begin rebuilding its nations wealth.
Spain, on the other hand, should be watching this very closely as one of the largest economies, with the worst unemployment of the PIIGS nations, it is a good possibility they will follow suit and default on their loans as well. Catalonia, which comprises 25% of Spain’s GDP has already set in motion a full-fledged annex from Spain, taking all their currency, sovereignty and sanity with them. Meanwhile in Italy, they, too, are watching very closely as they were just straddled with a huge amount of Greece’s debt–not a smart move, but more than likely, according to Andrew, they will be leaving the Euro as well.
This brings us to silver. The Silver Institute is claiming there will be a 27% increase in the use of industrial silver by 2018–mining operations are either slowing down or shutting down, where in the world are we going to find 27% more silver over the next 3 years? “we’re not” cries Andrew. He goes on to explain the number of ounces required for industrial use are going to be further squeezed by the investment demand which, as Steve St. Angelo has pointed out on numerous occasions, is on the rise and will continue to rise at a much greater clip than industrial demand. 2013 and 2014 were back-to-back record years for both the American Silver Eagle and the Canadian Silver Maple Leaf. Not an easy task when you are talking about 44 MILLION and 25 MILLION, respectively, for the top two silver coins in the world. That is a massive amount of silver in just those two products alone. How will the new demand be satisfied?
According to the US Mint, in 2014 the gold-silver ratio was 83.9. Currently, real world ratio is 74.5 ounces of silver to ounces of gold. According to mother nature, there is approximately 9.5 ounces of silver coming out of the ground for every 1 ounce of gold–other can manipulation how can this disparity, according to the COMEX price, be explained? I understand the US Mint ratio, because they are not concerned with dollar amounts, just the movement of product, but the pricing is set on the COMEX and the LBMA and it seems the pricing should be more in line with nature or am I completely wrong?
We hope you enjoy this conversation and we hope you learn a little something. Let us know what you think in the comments section below and please feel free to share with someone that either needs to hear this or that wants to hear it.
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Contributed by Rory Hall of The Daily Coin.
As a daily contributor at SGTReport.com. for the past two years I have written a several original articles and interviewed some of the top precious metals professionals in the industry, as well as top preparedness specialists in the world. YouTube Channel, The Daily Coin, was launched in February 2014 and website TheDailyCoin.org was launched April 25, 2014. As a student of monetary, financial and economic history for the past five years it has taught me to watch the markets with an open mind and a hand on my wallet.
Also, built and maintained Rory’s Glass (Eyes of the Heart Glassworks) – now closed to the public.