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Katchum
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Albert Sung is the author of Correlation Economics, monitoring breaking economic news on a day to day basis. He started investing in 2008 because of the economic crisis and holds a masters degree in chemical engineering. Previously, he worked several years as a process engineer at Ashland, a... More
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Correlation Economics
  • Eric Sprott And The Investment Of The Decade: Silver 0 comments
    Oct 23, 2012 6:06 PM | about stocks: SLV, PSLV

    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.

    (click to enlarge)

    Table 1: American Eagle Gold Sales U.S. Mint

    Table 2: American Eagle Silver Sales U.S. Mint

    Disclosure: I am long PSLV.

    Stocks: SLV, PSLV
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