Katchum's  Instablog

It is very rare to see Eric Sprott in a conference, so cherish this opportunity.

You can view the video on my blog:

http://katchum.blogspot.be/2012/10/eric-sprott-investor-conference.html

There is one thing I learned from this presentation and that is another thing I can monitor, namely, the silver and gold sales at the U.S. Mint here:

http://www.usmint.gov/mint_programs/american_eagles/?action=sales&year=2012

According to the numbers, we had 48500 ounces of gold sold in October 2012. At the same time we had 2584000 ounces of silver sold in October 2012. If we look at the dollar value of these numbers, we get $82.5 million gold and $85.3 million silver bought in October 2012.

So basically investors are buying the same amount of silver as gold, which is impossible according to Eric Sprott. It cannot last.

Let's compare this to 1987. In October 1987, they sold 198000 ounces of gold ($93000000) and 800000 ounces of silver ($6400000). So you can see that they bought like 10 times more gold than silver. That has changed dramatically if we compare these numbers to today.

I will make some more charts later on to see if there is a trend in the monthly and yearly numbers.

Disclosure: I am long PSLV.