Saturday, November 22, 2008

Perth Mint suspends trades due to unprecedented demand!

This is big news for precious metals.

Perth Mint has frozen all orders through December. They will not sell you gold anymore due to unprecedented demand from Russia, Ukraine, Europe and US.

The gold correction is over. That means that the silver correction is also over.

We will now see the trend for the so-called "strong hands" that are cash heavy begin shifting into gold increasingly as they have already done and as both gold and silver move up, the silver story will eventually become understood by the market and silver will shoot up to 50 - 100 and beyond.

The time is now to get in at the 9 - 10 dollar level for silver. I was saying this since silver was at the 4-5 dollar level back in 2000 - 2004. Nothing changed except that now silver is booming up again and won't ever go back to this artificial level again because cost of production is already 16-17 dollars an ounce!

Precioius metals are perfect for times of economic collapse because people rush to them. Besides booming in value, they are not taxed or traced normally. By staying under the radar, you can shift medium sized estate into a multiple of 10 quite easily by simply throwing that which will be worth nothing (US dollars) into something that will be worth a great deal (Precious metals). To make matters more interesting, precious metals have been artificially depressed with naked shorts for decades. There is so much more paper out there than actual metal that people are going to get hurt when paper holders of the yellow and silvery metal get nothing in return. That favors those who buy physical. And the story will get bigger for both silver and gold when that happens. Silver being an industrial metal has as much or even perhaps less above ground available supply than gold... striking up another match for the silver boom side of the argument. Regardless, both are bottomed now and the boom-side awaits. This will be a wild ride. It starts approximately now.

Story below...

Cheers, Tate


Perth Mint suspends orders amid rush to buy bullion

Sarah-Jane TaskerThe AustralianFriday, November 21, 2008
FEARS of the unknown long-term effects from the global financial crisis have sparked a new gold rush.

With retail and wholesale clients around the world stocking up on the precious metal, the Perth Mint has been forced to suspend orders.

As the World Gold Council reported that the dollar demand for gold reached a quarterly record of $US32 billion ($50.73 billion) in the third quarter, industry insiders said the race to secure physical gold had reached an intensity that had never been witnessed before.

Perth Mint sales and marketing director Ron Currie said the unprecedented demand had forced the Mint to cease orders until January, with staff working seven days a week, 24-hour days, over three shifts to meet orders.

He said Europe was leading the demand, with Russia, Ukraine, Middle East and US all buying — making up 80 per cent of its sales. One European client purchased 30,000 ounces for $33 million.
“We have never seen this before and are working right at capacity. And we are seeing it from clients in the shop buying one ounce, right up to 30,000 ounces from overseas clients,” Mr Currie said.

Robert Jaggard, manager of bullion and rare coins dealer Jaggards, said business had picked up strongly and he expected it to increase further.

“All around the world there has been a heavy run on physical gold and there is a shortage of supply,” he said.

Full story here.

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