Loading ...While demand for U.S. oil products slightly declined (or remained steady) from 2009 to 2013, this was the opposite for gold and silver. Let’s first look at gold. Here is a five-year gold price chart:
We can see gold’s trend line is similar to the price of Brent crude until the end of 2012 when the price of oil remained steady, gold declined precipitously.
The next chart is total global gold demand. From 2009, total global gold demand increased from 3,493 mt (metric tons) in 2009, to a peak of 4,582 mt in 2011, and then a small decline to 4,416 mt in 2012. 2013 is a strange year because of the huge withdrawal of gold from ETF stocks. According to the World Gold Council, a net 881 mt of gold was withdrawn from ETFs in 2013.
Many in the precious metal community speculated that the massive draw-down of Gold ETFs, was due to a shortage caused by huge demand coming from the EAST (China) after the price take-down in the beginning of 2013. Supposedly, the Banking Cartel did not have the physical gold to deliver into the market, so it raided the only available stocks found in the Gold ETFs.
If we assume this was true, then it only makes sense to add this 881 mt figure to the net total of 3,756 mt published by the World Gold Council in 2013 for a grand total of 4,637 mt in global gold demand.
According to the Silver Institute’s figures, total global silver supply was 978 million oz, while total demand was 1,091 million oz (including 10 mt of ETF and Exchange build). Where did the market find 113 million oz of silver to supplement the shortfall?
This is the TRILLION DOLLAR question.
Matter-a-fact, the total annual deficits from 2009 to 2013 equaled a staggering 372 million oz. Who supplied 372 million oz to meet this silver demand? I believe this came from what is known as “Implied Unreported Stocks” that were over 2 billion oz in 1990 (data from CPM Group’s 2014 Silver Yearbook). This 2+ billion oz went to supplement the annual silver deficits over the past 3 decades.
According to data provided by CPM Group’s 2014 Silver Yearbook, that 2+ billion oz of Implied Unreported Silver Stocks are now nearly totally wiped out. I believe most of that silver went to feed the annual deficits and some made its way into the Silver ETFs.
Investors must realize that the Fiat Monetary Authorities will allow the price of oil to remain high because it is the foundation to economic activity and growth. The Banking Cartel’s main focus in the oil market isn’t to manipulate oil prices higher to make profits, rather to allow HIGH COST oil to flow into the market. And… high cost oil are Shale Oil and Tar Sands.
Without these two sources of expensive unconventional oil, Global GDP growth would have peaked and declined years ago. Thus, putting a real KIBOSH in their control of the fragile fiat monetary system.. which needs a growing oil supply to survive.
The Banking Cartel needs to keep investors away from buying gold and silver because they are the BLINKING RED LIGHT that indicates something is very wrong with the financial system. To keep the public and investor demand limited in gold and silver, the Banking Cartel is using price suppression tactics, including negative press via the financial networks.