Are You a Silver Stacker? This Figure Will Make Your Head Spin!
A Splash of Cold Water
Sometimes, it behooves us to revisit some basics, when valuations are strained beyond all limits of credibility and belief. When you really need that splash of icy-cold water on your face, ya know?
Case in point, this past Friday, in episode 2 of the Clarion Call, I took some time fleshing out an astonishing dollar figure about silver. If you’re a subscriber on the Watchman’s YouTube channel, then you’d already know what it is, and if you’re not, what are you waiting for? *nudge nudge*
Honestly though, the figure was so surreal to this Watchman, that I decided to flesh it out a great deal more in this article, to demonstrate just how precarious our enemy’s position has become in their silver suppression. I can’t stress enough how many times I’ve told our brothers, that this unforgiving downtrend in silver, which is now going on 4 years, has reached the point where valuations are so low, that just a handful of committed people, can really do some serious damage to the riggers.
This figure I’m about to go over, showcases that very thing, like few other factoids I’ve seen.
U.S. Mint Capabilities
With the recent “Sold Out” sign hanging at the U.S. Mint silver eagle program, that’s only being removed today, (but for how long?), I thought it would be interesting to see the dollar value of the maximum number of eagles that can be produced in a single day. Such a figure will help us gauge just how unbelievably vulnerable the enemy’s jugular now is!
According to Ted Butler, the U.S. Mint has bumped productive capacity such that it can produce about 130,000 eagles per day(including weekends), or roughly 1 million per week(that is, IF they secure enough blanks from their vendors). To simplify this, let’s add it up, and round off production to roughly 200,000 eagles per business day.
That’s it, 200,000!
So, let’s scribble off some quick “napkin calculations” to help!
This morning’s silver spot price: $16.10(as of 3:30 a.m., Nov. 17th) + $2 Mint Seigniorage= $18.10
$18.10 * 200,000= $3,620,000.
The U.S. Mint, at today’s prices can churn out a mere $3.6 million worth of silver coins per day. Thursday, when I recorded the episode, silver was at $15.50, and the U.S. Mint could only produce $3.5 million in silver eagles per day!
Wow, Watchman, $3.5 million in silver per day is huge, no wonder silver is languishing in the mid teens!
Uh, friend, you do realize that American workers spend more than $3.6 million every 12 minutes, just on coffee alone, don’t you?
Don’t believe me?
That gives you a figure of $161,700,000,000! Nearly $162 billion a year, just on coffee!
Now, divide that figure by the number of minutes in a year(525,600), and you’ll realize they spend over $307,648 per minute alone, on a cuppa Joe!
Put another way, at these silver prices, it would take the world’s largest mint a whole 4 months to produce a quantity of silver eagles, that is equal, dollar for dollar, to the U.S.’s coffee allowance for 24 hours!
This literally short circuits the brain, when understood!
Silver is money, and 147 million folks in the U.S. alone, spend 120 times more on ‘wake-up juice’ than all of humanity can spend on money at the world’s largest mint!
Let’s take a look at a few other things which are priced faaaaaar above a full day’s silver eagle production at the U.S. Mint!
The Fed and D.C. have now spent the last 6 years furiously trying to re-inflate the popped, housing bubble, that Greenspan and Bennie Boo both blew up with their uber-low interest rates. Their efforts have unfortunately been a moderate success up until this moment, which will only serve to gut what’s left of this sector, when the market-rigging “maestros” finally grow exhausted from playing their dirges of ZIRP(zero percent interest rate) on their monetary flutes.
But, in the meantime, everyone’s gawna party like it’s 2006! The dollar amount of malinvestment that’s been shoveled into brick and mortar dwellings once more, has again reached levels which could be considered absolutely tragic. In fact, one wealthy neighborhood alone, contains real estate assets, which could literally be swapped for more than a month’s silver eagle production!
Find it hard to believe?
Here, let’s just take a look at the posh “little town” where one of the Watchman’s uncles lives, and the larger city around it: Coral Gables, Florida!
Go ahead, click on that link above, and just give it a little scrolly-scroll downward!
Right now, there are roughly 60 houses on the market in that tiny piece of land, which could each be traded for more than a full day’s allotment of silver eagles at the U.S. Mint!
The first 5 on that list alone, with a combined asking price of over $103 million dollars, could swallow an entire month’s worth of minted silver eagles!
Keep going through those pages in both the Coral Gables and greater Miami area, go ahead! You’ll find literally thousands of homes, all worth(in dollars) several days of silver eagle supply apiece! All it would take is just one homeowner, JUST ONE, deciding to take the “drastic” step of selling his 2nd or 3rd home, converting it to U.S. minted-silver, and this little dude would be running around the U.S. Mint screaming, in pure bliss:
It wouldn’t even take someone that wealthy to dominate the eagles market, either! According to the Census data, the price of the average new home sold in the U.S. in September was $313,200.
The U.S. Mint, at this price can only produce enough silver, in dollars per day, to equal 12 home sales last month. 12! Ludicrous!
All it would take, is a literal handful of real-estate-for-silver swaps along one, lazy street, and poof!
No more eagles for the other 7.1 billion people on the planet on any given day!
What about farmland? How does that stack up against U.S. silver eagles right now? I ask this, because I really love and appreciate farmers. They’re salt of the earth people, who actually add value to every one of our lives. They are also usually very practical and intelligent people, who distrust others who always “wanna provide for them” with other peoples’ money!
What if just a handful of farmers in the agrarian heartland, really became concerned about the fragility of the debt instruments which we call U.S. Treasuries, and the U.S. dollar(a unit of debt in those instruments), and decided that their position in life wasn’t hedged enough against the likelihood of a U.S. Dollar fall-out?
Let’s look at one, decent-sized farmer, who owned, say, 5,000 acres, at 2013’s average price of just $2,900 per acre. That one farmer’s land would be worth(not counting the buildings, livestock/produce, and equipment on said land), roughly $15 million dollars.
What if he decided that he could easily remain a small, healthy agri-estate on 4,000 acres, and decided to sell just a measly 1,000 acres to exchange for silver eagles?
At roughly $3,000 per acre, that farmer would(without even knowing it), deprive the globe of a day’s silver eagle production, all by himself!
What if that farmer lived in Iowa though, where the farmland values have soared even more(perhaps well above what is justified) and sold that acreage at last year’s average prices of $8,700 per acre?
That farmer could clean out a day’s silver eagles with just 400 acres!
This is mind-numbing, Alice-in-Wonderland stuff, shield brothers!
The Unseen Army Which could Corner Silver at Any Moment
Let’s also not forget the unseen army, which could unwittingly corner silver in a literal hour!
Ohhh, I get it, Watchman, you mean the 1,600 billionaires, right?!
Forget the 1,600 billionaires in our world, brother! You’re thinking way too big about a market that could literally dance on the head of a pin. Besides, most of those billionaires are compromised anyway(with a few notable exceptions), and would never give silver a second glance!
Dismiss them from your mind.
I’m talking about the mere millionaires in our world, guppies, just like us! According to the latest figures, there are over 7.1 million, millionaire households, just in the United States alone!
That’s more people than live in all of Washington State!
Wikipedia says the average net worth in the millionaire’s class, is over $3 million dollars.
Millions of those households, could “get religion” about the U.S. Dollar’s chances, and write a check large enough to deprive anyone else of silver eagles in a moment’s notice.
It could happen, without warning, at any time….
In fact, it could be happening right now.
I’ve recently read speculation from some very well-respected silver gurus saying there’s likely a “Mr. Big” in the silver market, scooping up all the silver eagles.
Maybe. Maybe. But at this point, that’s mere speculation, because while we can read a monthly Bank Participation Report or a weekly Commitment of Traders’ Report, to prove the numbers of outstanding silver shorts on the bankers’ books, there is no such thing as a “Commitment of Eagles Report”! Try googling it, and see what you come up with!
While it’s possible that a large bank is stepping in and shutting down the U.S. Mint with overwhelming buy orders for eagles….you must hear me now:
This entire article demonstrates, that at these prices, the silver eagle market is so microscopic, that we do not need a “Big Fish” to backlog the silver eagle production whatsoever!
At $3.6 million per day, this isn’t even a “Big Tadpole’s” market, let alone a “Big Fish’s”!
Although it does take some big banking players to rig the strained and tenuous silver futures market, a handful of moderately wealth men, could easily, EASILY, move in concert(or all by themselves) to corner all the eagles in 2014.
And, hear me now, because this is crucial!
If such a small group of men was doing so…..you’d never know it!
It would never show up in the coin shop sales, it’d never show up in public sentiment, it’d never show up anywhere.
It would all be discreet.
It would all be in shadow.
As we’ve seen, there over 7.1 millionaire households in the U.S. alone, and the average net worth in that category is over $3 million dollars per person. 300 men or women, out of that 3.5 million, could each buy 200,000 eagles, handily!, on each business day of the year! Or, just 50 of them, could buy 1 million eagles per week, and perennially shut everyone, everywhere, out of silver eagles forever.
OK? It has now become that absurd.
This should be a violent wake up call to shake those who say dumb things, like “but there’s plenty of silver out there!”, into realizing that you’re literally in a race against other human beings, to acquire whatever meager silver offerings you can glean, before just .001% of millionaires figure out what’s really going on in this world, and rationally act with their wealth, in the way you’ve acted with yours…..
Because the precise moment that .001% of the world’s millionaires find out, it will be too late!
At that point, the silver you have, will likely be most of the silver you’ll ever own, especially in the American Silver Eagle category!
You may not know it, but we’re smack dab in “the good ole days” in silver, and you’re running out of time to do this. You’re running out of time to be able to run through coin shops, like a kid in a candy store, and walk out with everything they had in their glass cases(now in your arms), for a song!
This is exactly why the Watchman truly embraces these attacks!
It makes us all “Big Fish”.
It has become quite hilarious!
If our foes continue this downtrend much longer, we’ll all be “Mr. Big”s, each able to clean out the U.S. Mint with the change in our couch!
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