Category: Silver

2016: Take charge and #BeResponsible

fotolia_98074017It’s always a mind-numbing task to review the year that just passed, trying to piece together the puzzle of events – and 2015 was no different. From the investment side, precious metals had a slow and low year. Technology took some massive steps forward with the release of driverless car prototypes, ubiquitous Uber, a wide variety of drone applications, robots, 3D printers… the list goes on.

While technology has been punching away at the world’s troubles, ‘government’ has provided the endless background hum as we approach the 2016 elections. I won’t bore you with the details but amid heated talk of the war against ISIS, it is regulations and taxation that have continued their insidious influence, growing in reach akin to the way the money supply grows in such a speedy and unethical fashion. No, we aren’t here to remind you of the grim realities of the world; just to send some motivation and energy into your day-to-day life, and to ensure you are seizing each day and making it count!

We bring you the #BeResponsible campaign for 2016!

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5th of November Photo Caption Contest

One of the best films – with a message – is celebrating its day of inspiration this week, and Anthem Vault plans to make it an exciting week for our customers. The 5th of November is celebrated as ‘Guy Fawkes Day’, mostly in Great Britain. Citizens celebrate the failed attempt of taking down King James I. This same story was interpreted into the blockbuster hit “V for Vendetta”, which sent shockwaves through Hollywood. It became an allegory against oppression, and many political groups have since referenced the film. This controversial film, that was first a book, tells the story of the failed Gunpowder Plot of 1605, attempted by Guy Fawkes as well as 10 or more other plotters.

One of the original authors of V for Vendetta describes the film’s significance in society today:

“The Guy Fawkes mask has now become a common brand and a convenient placard to use in protest against tyranny – and I’m happy with people using it, it seems quite unique, an icon of popular culture being used this way.”

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We are celebrating the 5th of November all week and giving away a 2 ozt Warbird, .999 silver round. All you have to do is join our Facebook page’s caption contest.

The person who contributes a caption and receives the most likes will win. We will also have a winner picked by the judges here at Anthem Vault. Visit the page and submit your caption! The winner will be announced on Thursday at 4pm MST.

No Uncertainties with Silver

silver barFor well over 2,500 years, silver has been recognized as a holding of substantial value. The Lydians (present day Turkey) were one of the earliest makers of silver currency, a bas relief coinage which differed markedly from the bronze and copper coins that the Chinese had been using years earlier. Fast-forward two-millennia, and we find ourselves still loving that lustrous precious metal.

In July 2015, the U.S. Mint sold out of silver bullion coins.The high demand for silver is simply a derivation of low spot price and the (potential) upside of buying bullion in bulk. It’s also important to note the value of silver futures. Now trading at $14.65 an ounce, spot value is higher than what futures are predicting. CME data suggests that October futures will be trading about $0.10 lower than current market value. For large investors, this fractional difference screams ‘opportunity’ from the rooftops. There’s a big upside to selling now and buying again in a few months. Taking advantage of the current-spot-versus-futures situation would ultimately lead to an increase in the futures value.

But not all of us are large investors with cash flow ad infinitum. For the small investor, the answer is simple: buy more silver, and soon. I say this as an investor and also a student of the market. With prices of silver reaching affordable lows and demand for the precious metal reaching unfathomable highs, it seems that an increase in price is right around the corner. We have to remember that the large corporate investors play a pivotal role in market prices. When the supply is struggling to match the increasing demand, there has to be a squeeze coming. This means that in order to combat the excessive buying, the price of silver will soar in an attempt to manage the supply needed on a day to day basis.

U.S. Mint Runs Out of Silver Bullion

AmericanSilverEagleLast week, the U.S. Mint sold out of its 2015 American Eagle silver bullion coins, citing a ‘significant’ increase in demand, according to Reuters. This also coincided with the drop in silver spot prices from $15.67 per ounce to a low of $14.62 per ounce last Tuesday. Silver hasn’t seen spot prices this low since 2009!

Given the decline in silver prices, it is not surprising to see the surge in demand for physical bullion. Contrary to the actions of futures traders who normally don’t take delivery of the physical metal, bullion investors tend to buy more when the price declines, viewing it as a buying opportunity. Managed futures traders and other money managers may instead be trading based on momentum or other strategies that are not related to an actual desire to own the physical metal.

The U.S. Mint has temporarily run out of silver bullion coins in the past, as they did last November through the end of the year. In this case however, the Mint said they expect sales to resume within a couple of weeks.

Looking at the American Eagle silver coin sales data on the U.S. Mint’s website, we can see demand has indeed been strong in the past two months. In June, the Mint sold 4.84 million 1 ounce silver coins; 80% more compared to June last year. In addition, July sales of 2.7 million ounces have already outpaced last July’s 1.975 million ounces, despite us being only half-way through the month. However, year-to-date silver sales are still slightly behind last year.

Texas Repositories of Gold

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Fort Knox and the New York Federal Reserve are the most highly recognized gold depositories in the U.S. Legislation approved in Texas will soon allow the “Lone Star State” to store precious metals like gold and silver through a bullion depository for public agencies, business and nonprofit corporations, banks as well as individuals. At the time of this writing, this legislation is expected to be signed by the governor.

All of this is the brainchild of Rep. Giovanni Capriglione, R-Southlake, who has championed this measure for two years. It authorizes the state comptrollers office to establish the depository, making Texas the first state in the nation to take this unprecedented step. Undoubtably one of the catalysts prompting this measure are investment funds connected to the state’s public universities and other entities, including over $1 billion dollars in gold that Texas has currently stored in other states

Somewhat surprisingly, news of this has led to a global groundswell of interest among individuals desiring to secure gold in this mecca of the American Southwest. Some surmise that maintaining gold within the state will allow avoidance of federal oversight, while capitalizing on storage efficiencies that accommodate large amounts with minimal space.

This new legislation could foster a new normal for gold and silver deposits thereby fostering an environment of sound money. Here, by tying this to regular, daily consumer transactions, this new initiative could have a broad reaching effect on the economy. Experts believe that gold and silver transactions across multiple states will have a chilling effect on the federal government’s monopoly on money

What Does This All Mean?

For starters let’s give the State of Texas props for this ingenious promotional branding move. It’s no wonder that the economic fortunes of the “Lone Star State” are the envy of the nation. The secret Texas barbeque sauce here: As the state receives it’s anticipated mother lode of gold and silver deposits, it will be able to earn revenue off of the fees. Moreover it allows the state to leverage their own precious metal assets to hedge against an economic downturn or inflation. As the slogan goes, “Don’t Mess With Texas,” particularly as it relates to the state’s repute as a robust economic engine of prosperity.

It’s no secret that the Texas’ fiercely self reliant, independent style is at odds with Washington. Some in fact have suggested that this latest initiative could be characterized as a “middle finger” shot at the feds. Could all of this be signaling rumblings of discontent leading to howls of succession from the union?

It’s an intriguing question that is certainly worth its weight in gold.

Michael Scott, Bookmark Global Connect, Inc
http://allthatbookjazz.tumblr.com

JPMorgan’s Physical Silver Stash Continues To Grow

S9sGEWmY_400x400Ted Butler, a highly regarded analyst in the precious metals sphere, recently suggested that JPMorgan Chase might own as much as 350 million ounces of physical silver. That’s a shocking number, and even though speculation is rife in Butler’s arguments, the official figure (around 55 million ounces) tells an interesting story. The bank’s bullish stance could bode well for the future of the silver price.

JPMorgan started collecting silver in April 2011, when the metal’s price was just beginning to fall from its high of nearly $50/oz. Before the spike, the bank had virtually zero ounces of physical silver bullion.

5y Silver

A year later, their stockpiles were up to around 15 million ounces and since then, they have more than tripled their stash to 55 million ounces. In a span of just 10 days during April 2015, they had more than 7 million ounces delivered; a huge amount for such a short period of time.

Some have argued that JPMorgan’s behavior in the paper/digital silver market has been malicious and unfair. In a lawsuit, rival investors claimed that the bank was manipulating the price downward to aid their physical purchases. But that lawsuit failed in 2013 and an appeal was struck down in 2014.

When it comes to the facts, however, JPMorgan’s intent is not especially important. The bottom line is that the bank has been amassing a great deal of silver bullion, and that could mean that they expect higher prices before long.

Two essential factors here are JPMorgan’s sheer size and influence. It’s the largest bank in the U.S., and it’s leaders clearly knows their way around Wall Street and the entire financial system. That certainly doesn’t make them immune to mistakes, but their outlook should still mean something to the average investor; if they expect a spike, maybe we should too.

And of course, this begs the question: Why? If JPMorgan is so large, so experienced, and has access to crucial and far-reaching market analysis, then what do they see that’s telling them to buy silver? It could be nothing more than the idea of profiting through manipulation, but there could be more legitimate reasons as well.

Some suspect that JPMorgan anticipates another financial crisis. The bank’s chairman and CEO, Jamie Dimon, even wrote to shareholders recently and noted that “there will be another crisis, and its impact will be felt by the financial market.” He further explained that the crisis could be triggered by any number of events. The cause could be geopolitical issues, rapidly rising interest rates, a commodities collapse, a real estate crisis, a bubble, or something else.

In my own opinion, that anticipation makes a lot of sense. The history of the world’s financial crises alone should indicate that problems will come. Every few decades (or less) we see interest rates go crazy, prices collapse (or spike), currencies evaporate, or entire industries go under. Throughout all of this, silver has certainly fluctuated, but for wise investors, it has never failed. Its reputation as a sound store of value has held strong. It appears that JPMorgan sees silver as security at the very least and as profit if things go well. We might be well-advised to follow suit.