On Jan 17th 2013 The U.S. Mint halted the sale of one ounce Silver American Eagles due to the lack of supply of silver. Six million coins were sold in the first 17 days of the New Year to precious metals dealers across the country. Silver commodities analyst Ted Butler says that the industrial silver shortage is also why there has been a 10 week delay in Apple iMac production in China. The overall supply shortage of metals may lead to a panic in the market and massive rise in price.
Ted Butler has predicted and been waiting for the eventual shortage of physical silver. He comments that the panic buying of silver will finally terminate the bank cartels manipulation of the bullion silver market. Currently we use 40% more silver than what we can mine. This news is no surprise to the trade floor at Numis Financial. Silver is at still a great buy and should be an essential part of your portfolio. Please click to see the media coverage on this story.
On January 19, 2013 Russia announced that they added another 600,000 ounces of gold to their reserves in December. This brings the official gold total to 3.2 Million Ounces in 2012. With the Fiscal Cliff and the Debt Ceiling raise just days away, it’s obvious why Russia is hedging against the paper market with precious metals. Gold is currently at a great buy price; please call your account representative at Numis Financial to discuss strengthening your metals portfolio.
Your Adviser is not allowed to sell you Precious Metals
Financial advisers can only recommend publicly traded securities; anything other than securities is not covered in their licensing. Precious metals are a tangible asset and your adviser does not have access to it. It is typical for an adviser to try to sell you Precious Metal ETF’s or Mining Stock when you insist on getting into the Precious Metals market. ETF’s and Mining stocks are not the same as owning physical Precious Metals and are susceptible to Inflation, company earnings, corporate fraud, and stock market volatility. All of these risk factors are eliminated when owning physical Precious Metals.
Your Advisor cannot make fees or commissions on physical Precious Metals
On average most Financial Advisers make anywhere from 2%-5% annually on managing your portfolio. Once you purchase physical Precious Metals there are no management fees that can be charged. Even thou Gold have done an average 20% + in gains over the last ten years, it is not in the best interest of your financial advisers “pocket book” to recommend physical metals.
Financial Advisers don’t really understand Precious Metals
The reason why most financial advisers do not recommend physical gold and silver is because they are not educated in their Certified Financial Planner textbooks. Throughout the whole textbook there are only 6 pages devoted to Precious Metals, in which they reference precious metals as being “jewelry” and not a viable investment or diversification option.
Weakening of the U.S. Dollar
Although the U.S. Dollar is one of the world’s most important reserve currencies, The US Fed continues to recklessly print more money as The US economy catapults into unprecedented debt. The more money that is printed the weaker the dollar becomes.The weakening dollar negatively affects the stock market, bond market, mutual funds, and money market accounts. Inversely commodities like Gold, Silver and Oil rise in price because it takes more dollars to purchase these same assets. As you can see in chart below the dollar has been on a steady decline since President Nixon took the US dollar off the Gold standard in August 15, 1971 (Nixon Shock)
The International Monetary Fund (IMF) recently issued a statement about replacing the dollar as the world’s reserve currency with a system of Special Drawing Rights called SDR’s, an international type of currency created in 1969 which is, in effect, a “basket of national currencies” backed by the full faith and credit of the member countries governments. Due to the uncertainly with the US Dollar counties like China, Russia, and Japan have already started moving away from the dollar with more counties soon to follow.