Silver Eagle Sales Set A February Record

Betting against gold is the same as betting on governments.  He who bets on governments and government money [fiat currency like the U.S. dollar] bets against 6,000 years of recorded human history.  – Charles De Gaulle

Silver, for 6,000 years of human recorded history, has been “poor man’s gold.”  In fact, based on everything I can find on the topic, silver was used as currency before gold. Buying silver with the gold/silver ratio at 80 is like buying gold on steroids.

Charles De Gaulle is the person who is credited with forcing Nixon to “close the gold window” in 1971.  De Gaulle had figured out the U.S. had issued far more debt to foreigners than it had in gold to back that debt, per the requirement of the Bretton Woods Agreement.  De Gaulle had been quietly exchanging Treasury debt purchased by the French Government for gold, per the terms of Bretton Woods.  Before De Gaulle had a chance to clean out the Treasury’s gold, Nixon unilaterally and illegally terminated that portion of Bretton Woods.  To this day I have not read a reasonable analysis which explains why the rest of the world enabled the U.S. to get away with this.

The massive issuance of paper claims on the  stock of physical gold and silver supposedly available to deliver into those claims should they be exercised has risen to proportions which would make the Johnson and Nixon Governments blush.  Meanwhile the visible inventories of gold and silver continue to diminish (see this, for instance:  Deliverable Silver Stocks At The Comex Reach Historic Low).

it seems a small portion of the U.S. public understands the reasoning behind  De Gaulle’s assertion above and has been converting fiat dollars in poor man’s gold, as U.S. minted silver eagle sales hit an all-time high for the month of February:  Sales Of Silver Eagles Smash February Record.

If the percentage of the public – currently estimated at maybe 1% – that is buying gold and silver were to increase by just a few percentage points, the monstrous paper gold/silver short position underwritten by the bullion banks and the entities standing behind the bullion banks will go from potentially unmanageable to catastrophic.

Many of us think silver will be the ultimate “Achilles Heel” of these entities who have been aggressively manipulating the price of gold and silver since 2011.  While the impending move by Governments to a “cashless” banking system will likely cause a run on cash at the banks by the public, I believe that the run on cash will be followed by a run on gold and silver.

Paper money eventually returns to its intrinsic value – zero.  – Voltaire 

Something feels “different” about the way the precious metals are trading. This is reinforced by trading action in the mining stocks. The silver junior stock I recommended inNewSSJ Graphic the Jan 10th issue of the Short Seller’s Journal is now up 50%.  It could easily be a 5-10 bagger from here.  I recommended another silver stock, an emerging producer, in the current issue. I also featured a short idea this week that could quickly shed 50% once this latest short-squeeze bear market rally subsides. Today might have been the start of that. You can subscribe to the Short Seller’s Journal by clicking HERE or on the image to the right.

16 thoughts on “Silver Eagle Sales Set A February Record

  1. “To this day I have not read a reasonable analysis which explains why the rest of the world enabled the U.S. to get away with this.”

    This might be the answer, though it is anything but reasonable-

    From The Wall Street Journal, Feb 26, 1968
    Fed reserve Chairman Martin
    “Because we have the gun in the closet right behind us.”

    Might makes right in the eyes of the megalomaniac

  2. DeGaulle, who took great pleasure in flipping the “Bird” to the “Maudit Anglais” at every opportunity, had the benefit of having one of the truly remarkable, and practical, economists of that time as an advisor, – Jacques Rueff – who understood money better than most.

    1. Yes.
      It was Giscard who convinced de Gaulle to repatriate gold through diplomatic channels and not send the navy ship “Colbert” as he had planned to do.
      De Gaulle don’t fall in the American trap “The dollar as good as gold”.

  3. Dave,
    I think Foreign Aid was the reason the rest of the world enabled the U.S. to get away with issuing all those paper Dollars & not redeeming them for Gold.

    The deal probably was that we would give them lots of Dollars to buy whatever they wanted (including weaponry) as long as it was not converted into U.S. Gold.

    So, why turn off the gravy train of Foreign Aid by buying Gold & making the US angry?

    1. Wasnt’ foreign aid – it was U.S. military supremacy. It’s why the U.S. has military bases in something like 188 countries. It’s a way to force the dollar on the world. But that is changing quickly because the U.S. no longer has a military advantage over China or Russia.

        1. De Gaulle didn’t trust the US so much (from its previous experience during World War 2). He also was a military man himself, and not willing to accept even implied threats. He was also probably a bit obsessed about his legacy, and therefore decided to get out of NATO and get back the gold.

          His successor, Nicolas Sarkozy sold France gold (at a very bad timing) and put us (French) back into NATO !

        2. To my knowledge, we never maintained permanent military bases there. Germany, Italy, GB, and Greece yes. I believe we even hold an air base in SPain, but nothing in France.

        3. At that time France had already nuclear weapons and get out of nato in 1966. General de Gaulle was in charge of the
          sovereignty of France and not a slave of the United States, NATO and EU.

  4. I don’t know for you guys, but I really wonder how can they manage to keep the price of silver so low for so long…
    It’s been going on like this (record sale of silver coins) for quite some time.
    Makes me wonder sometimes if they (US Gov) have some secret mines of silver hidden. That’s the only thing that can keep this stuff going for a few more years…
    Meanwhile, I keep my stuff, no matter the price in US Dollars…

      1. There is a simpler explanation: the ‘authorities’ have little to no silver. They hide this fact by causing its price to drop so calamitously that the majority to inverstors shun it. M.M. did allude to this phenomenon but his reasoning is not correct. Silver should, in an ideal world be priced/valued more than gold if price is based purely on supply (that’s actual supply and not what we are giving to believe is true). There is no more than twice the amount (supply) of silver in the world as gold. That means the ratio should be 2:1 – 2 oz. of silver to one of gold. In the ground, what is left is less than 10:1 but that is diminishing as it is extracted and silver is consumed while gold is not. Starting to get the picture? It will only take to truth to be reveal for silver to rocket in price to unbelievable levels no one thought possible – except they will happen. (Ask Jim Sinclair – he knows the truth!)

        1. But then again, I don’t understand the point of all this (from the government’s perspective) : sure, the price is dropping, but they are only buying time, right ?
          What’s the point of gaining a little bit time by slashing the price ?
          Said otherwise, what’s the benefit for COMEX to act as complete crooks like this ?
          The only alternative is that the US government is buying huge quantities of silver…

          … Or you are right & they are both dumb & evil, at the same time.

  5. And no, there is no secret supply of silver. This mindless, reckless exercise in futility is kept going merely by that fact that until COMEX rules the silver price and closes its doors, voluntarily or forceably, this ‘circus of the absurd and the obscene’ will continue. The gold to silver at 83 silver oz. to one gold oz. is the latest obscenity as it flies in the face of Nature who holds no more than 10 oz. of silver to one oz. of gold to her breast (the earth)! This insane recklessness will chase every last oz. from markets (Gresham’s Law applies here) with the result that it will create a scarcity, disrupting industry and denying many people the benefits of silver. There is no greater evil being perpetrated upon HUmanity at present than this. This is no longer amusing, it is despicable and vile calumny.

    That, Americans, is what you harbour in your midst!

  6. Same old. Same old.
    A massive attack this morning, on both silver and gold.
    To be expected. Almost every morning and at the closing.
    The HUI is taking it on the chin also. The miners are being slammed.
    To be expected each time the metals get attacked. Same old. Same old.
    Watch Endeavor Silver EXK Running sideways pennant. Up or down?
    Paper games. Wash. Rinse. Repeat.

  7. And yet… here’s a funny thing. According to silver chart, COMEX volume has collapsed to under 1000 contracts over the last 2 days (29.2 & 1.3.16). Yesterday’s volume was 919 according to 29. 2 had slightly higher volume but I didn’t look at the chart on 29.2. Can someone verify that these volume nos. are right? If they are then perhaps it is the end of the road…

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