Sprott, the Chinese and big money are in – Ray’s Gold and Silver August Update


This is a August update from Ray Crowley at Physical Precious Metals.

I had sent out a mass email update a couple months ago when silver was below $27 stating bargain basement pricing as I felt it was the bottom and it has yet to test that level since then.  We are still trading sideways at the $28 marker which has maintained this gift of cheap cheap cheap opportunity.

Silver has been trading tight in the 27 to 28 dollar range for months now and has been long consolidating with gold building this strong wall of support. Silver and gold are not likely to stay at this waterline for much longer. Precious metals could run as soon as this month, my favorite analysts feel that these prices won’t last as we look towards the seasonal fall traction, Indian gold buying season, and especially with the next round of worldwide stimulus peaking it’s head. More economic trials ahead is now commonly reported and whichever scenario comes into effect next, you can be confident in the performance of historical money.


Some facts to consider:


– Silver’s upside potential is massive compared to gold. Silver supply has been largely consumed, gold is stored.


– The cost of production for silver is above silver price for many producers.


– Ore grade of precious metals worldwide is decreasing.


– Availability of physical silver supply has tightened as investors of physical increase demand. Generally speaking, silver investor confidence is reaching all-time-highs.


– Silver coin demand is exploding exponentially more than gold coin demand.


– The market is manipulated with paper shorts which allows us to buy physical at subsidized pricing.


– Eric Sprott Canadian billionaire has recently added over 200 million dollars worth of silver to the Sprott silver fund.


–       Sprott states he is convinced gold will be at new all time nominal highs by the end of 2012


  If there is war in the Middle East, Sprott says, “Oil would go crazy, gold would go crazy, anything physically real would be in demand.


– Chinese billionaires have been adding massive amounts of gold in the past months.


– Jim Rogers says if he could only invest in one precious metal this summer it would be silver.


– Many other big money investors such as George Sorrows and John Paulson and Paulson & Co  have substantially increased their gold positions by 25 to 50 percent recently.


– Central banks worldwide steadily increase gold holdings every month.


– Once the money managers, JP Morgan and ETFs duck out of their short positions and go long there will be nothing in the way of new highs, this is entirely possible in the near future.


– More inflation of the things that we need and deflation of the things that we don’t need, precious metals triumphs through.


– When Pan Asian Gold Exchange comes into effect it will contribute to a more free market in the metals giving further upside momentum.


– When silver was a less industrial metal the silver to gold ratio was 12 to 16:1, it has been 50 to 60:1 and we see more and more demand by investors of the physical increasing and progressively the gap tightening.


– Increasing number of investors are demanding gold in allocated accounts.


– Physical gold is now declared a tier 1 asset by banks. Physical gold counts as capital the same as a treasury bond. Demand for physical metal will increase substantially from this ruling.


– The NY Fed has released an essay titled “The Key to The Gold Vault Describing gold as a ‘phenomenal asset’ ”


–  Arguably the best level headed silver analyst David Morgan has called this as the bottom in silver.


–       The next round of quantitative easing is likely just around the corner and proves very good for precious metals.

Are you brave enough to be a contrarian and to buy low and sell high?

Better a month too early than a minute too late!

Will you stand on your sideline and watch the smart money buy now and wait for higher prices to buy half way through the next run?… Or will you buy now and be patient knowing that you hold the most reliable form of wealth at a bargain price?


Those who have yet to add more physical precious metals to holdings may want to seriously consider adding at this cheap price, especially if you have yet to take a position. It is not only a safety net against a volatile world, it not only preserves but it increases purchasing power in this climate of devaluing currencies, debt and economic crisis. Gold and silver being the number one inflation hedge, deflation or stagflation, wars breaking out, whatever the scenarios ahead precious metals will reward those who are able to identify and execute. Gold and silver will be the only monetary asset left if the sovereign debt issue cascades into a global crisis. Don’t ignore gold and other real assets in your investment portfolio. The age of austerity continues to make owning these resources more and more attractive with precious metals at the top.


Feel free to call or email for quotes and questions.





Ray Crowley

Account Representative



4-758 Alexander St.| Vancouver BC,  V6A-1E3

O: 604.568.6098   | Fax: 604.215.9910   | Toll free:1.888.631.4838



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