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WHAT’S HAPPENING WITH THE GOLD & SILVER MARKET: My Conversation With Precious Metals Dealer Tom Cloud

Tom told me that business has been so busy, the office was still returning calls and processing orders until late in the evening.  He says, there is now a long line of people, in the queue, waiting to purchase precious metals when they become available…. especially silver bullion. According to Tom, 75% of the volume buying is in silver bullion while 25% is for gold:

Tom also told me that during the past week, there’s been an enormous surge in BRAND NEW FIRST-TIME BUYERS of precious metals.  These are likely individuals who have friends and family that have spoken to them about precious metals in the past. But now, with the rapid disintegration of the economic and financial system, many are finally PULLING THE TRIGGER to purchase physical gold and silver.

I looked at some of the larger online precious metals dealers and saw that some of their prices were higher than what Dan posted this morning. However, we can see just how high the JUNK SILVER price is now above spot… $6.85!!  Tom told me that Junk Silver was only 20 cents over spot about three weeks ago.  How quickly things change.

As for Silver Eagles and Maples, Cloud Hard Assets are selling them for $17.75 based upon a $12.15 spot price.  Of course, any Silver Eagles and Maples are going to take weeks or a month-plus to receive the product. And, if the global contagion continues to impact the financial markets negatively, increased silver bullion demand will make the BACKLOG period even longer… possibly 2-3+ months. Although, some dealers may not provide any quotes for bullion products if availability extends more than two months.

Tom also shared that he can still acquire gold bullion from his brokers, but there aren’t any silver bullion stocks available… only at much longer wait times.  If you have any questions about precious metals or bullion prices, you can contact Tom or Dan here at the following page: Precious Metals Investing:  Cloud Hard Assets

Will The Precious Metals Market Get Even More Crazier In the Future?

According to the Reuters article, JP Morgan economist says U.S. GDP could drop 14% in second-quarter:

A drop of that size would be steeper than in the fourth quarter of 2008 – the worst of the Great Recession – when the economy shrank 8.4%.

Thus, JP Morgan is forecasting that U.S. GDP Growth would fall 14% in Q2 2020, nearly double the 8.4% for Q4 2008.  Now, think about this for a minute.  During the 2008-2009 financial crisis, U.S. GDP growth fell 8.4% in Q4 2008, but the Dow Jones Index was already down 43% from its 2007 highs. Currently, the Dow Jones Index is only down 32% from its high.  So, if JP Morgan is forecasting that U.S. GDP Growth will fall 14% in Q2 2020, that would suggest the Dow Jones Index has at least another 15-20% more to fall.

On the subject matter that there is no SHORTAGE of 1,000 oz Silver Bars, that might be true.  I imagine the demand for silver via industrial fabrication and jewelry has dropped considerably.  So… yes, likely surpluses are coming from the large wholesale-refining silver market that supplies the entire silver market. BUT… if the situation continues to deteriorate in the global markets, demand for 1,000 oz bars will likely be the NEXT STEP for Larger Investors, Hedge Funds and Institutions.

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