Two Charts That Indicate GFC2 May Be Close & Why I've Just Loaded Up On More Silver Having Seen Them...

Mike Maloney is really an excellent analyst. I was watching one of his insider videos on goldsilver.com earlier today and this particular presentation resonated with me fundamentally.

It was a simple presentation that illustrated two metrics. The first shows the decline in US gold coin sales, now at 12,000 Oz per month down from about 120,000 Oz at the start of the year and looking very similar to the lead up to the GFC where people were selling everything due to FOMO. Mike concludes that this chart sourced form the US mint shows that the same dynamics are now at play; people are finally capitulating from the brutal cyclical bear market in metals in order to chase the now bonkers stock market.

The second chart is possibly even more telling. It's simply a longer term plot of the VIX. Note that the current level is in the single digits, the first time this has happened since the GFC. The VIX is a measure of fear versus greed. It can also be viewed as a measure of under reaction versus over reaction. We are firmly in greed territory where people are under reacting to the world around them. Thanks to stockcharts for the plot below.

Sensing that a financial calamity is again very close, this morning I chose to load up on some more silver. Why all silver? Well Mike Maloney is currently targeting personally a silver to gold ratio of 500:1 which is much more silver biased than I am. Hence this haul is silver only. So let's take a look at what I ordered. For now, I'll have to rely on pictures and details from here until I take delivery and can photograph the pieces myself...

These first two are small one ounce pieces that are just something a little different. I don't yet have either of these and recently I've been enjoying diversifying what I collect.

1OZ XAG SILVER BAR

They are a cast bar stamped with the XAG Intrinsic Tender hallmark and 1oz of 999 fine silver. Their simple yet classically industrial appearance means you aren’t paying for the expense of minting or high finish in just 1oz of silver.

Many people wanting to get started in silver are forced into either higher premium 1oz coins or minted bars, or larger format bars that whilst cheaper per ounce, may be out of budget range or thought to be not as ‘tradeable’ in the future to a smaller format bar. These bars allow you to do exactly that.

XAG Intrinsic Tender is a growing brand that serves the dual purpose of being a widely recognised hallmark, but also potentially being a widely traded ‘currency’ unit as well. This is the first bullion product in the world to contain the official XAG currency code. “1.00 XAG” simply means that this item contains 1 troy ounce of 999 fine silver metal.

The International Standards Organization (ISO) maintains a list of official currency designators. Most people will already be familiar with the codes for Australia (AUD), United States (USD) etc, but there is a currency code for silver as well, XAG which equals one troy ounce of silver.

These bars are made in the UK by an LBMA accredited refinery.

1OZ SOUTHERN CROSS SILVER BUTTON

For those wanting beautiful small format silver but not wanting to pay the extra premium for legal tender coins – these are your bar. These stunning polished 999 silver cast 1oz button bars come sealed in plastic sheets of 20 (we will cut to size for smaller orders) providing both protection and stacking convenience.

Many people wanting to get started in silver are forced into either higher premium 1oz coins or minted bars, or larger format bars that whilst cheaper per ounce, may be out of budget range or thought to be not as ‘tradeable’ in the future to a smaller format bar. These bars allow you to do exactly that.

Southern Cross bars are produced in Germany by renowned precious metals trading house Geiger Edelmetalle.

Next we have the recently release 2018 year of the dog 1 ounce coin from the perth mint. I like collecting these so as to produce a collection of all the years as they're released. It's just neat to collect such things over time.

1OZ SILVER COIN 2018 YEAR OF THE DOG - PERTH MINT

Issued as Australian legal tender, each coin’s reverse depicts a German Shepherd dog and pup lying in grass with Chinese peony flowers in the background. The design also incorporates the Chinese character for ‘dog’, the inscription ‘Year of the Dog’ and The Perth Mint’s traditional ‘P’ mintmark.

The Ian Rank-Broadley effigy of Her Majesty Queen Elizabeth II, the 2018 year-date and the monetary denomination are shown on the obverse of each coin.

These magnificent silver coins celebrate the Year of the Dog, one of 12 animals associated with the ancient Chinese lunar calendar.

The birth dates for people ruled by the Chinese Lunar dog include 1922, 1934, 1946, 1958, 1970, 1982, 1994, 2006 and 2018. Those born under the influence of this sign are said to be loyal, amiable, kind and friendly.

For earlier year Lunar coins check out our Specials page for hidden treasures.
Lunar Year coins are produced in a limited mintage each year with a different design each year making them rarer than the Koalas or Kangaroos which have no limit.

Perth Mint coins come encased in a hard clear plastic case to help keep coins in pristine condition.

Now something a little bigger and a little different. This offering is a 10 ounce piece from the Royal Canadian Mint. I hope it looks as pretty in the flesh as it does in the picture!

10OZ SILVER BAR RCM

This 10oz RCM silver minted bar is a brand new offering from the Royal Canadian Mint making it the only 10oz silver bullion bar currently being produced and backed by any major government mint. This beautiful bar is also distinguished by a superior silver purity of 99.99% where most in the market are 99.9% and the inclusion of elaborate security features to help prevent counterfeiting.

Special security features include a unique serial number, reeded/serrated edges similar to that of a coin, RCM’s special bullion finish to the front and unique patterning to the rear, and individual packaging.

The bar’s front design incorporates the Royal Canadian Mint logo, weight, silver purity and the unique serial number. The rear of the bar is adorned with the maple leaf icon of the Royal Canadian Mint logo.

Up next we have 15 Perth Mint kangaroo minted bars. This provided a little better economy over the unit price.

15X 1OZ KANGAROO MINTED SILVER BAR - PERTH MINT

This little minted beauty is a neat way to buy 1oz silver without going to a coin, making it perfect for your Self Managed Super Fund. Meticulously crafted from 99.99% pure silver, each bar displays iconic Australian motifs and features a struck version of The Perth Mint’s LBMA registered mark on a table of radiating circles – an effective authentication feature. Included on the front is the inscription 9999 FINE SILVER, which incorporates a tiny ‘P’ mintmark within the last nine. The obverse of each bar portrays stylised motifs of a kangaroo.

This silver minted bar is presented without a capsule in protective acrylic tubes of 15 bars. Each tube is sealed with The Perth Mint’s tamper evident security seal. Orders of 150 coins are presented without capsules in 10 protective acrylic tubes housed in a white card storage box suitable (space efficient) for secure storage in third-party safe deposit boxes.

The Perth Mint is Australia’s leading precious metal refiner. Backed by the Western Australian Government, The Perth Mint has produced the official bullion coin program since 1987. The Perth Mint also produces a large range of high quality gold and silver bars. All Perth Mint gold products are refined to 99.99% purity and all silver products are refined to 99.9% or 99.99% purity.

OK, now to start stepping things up a bit. To keep the 1 ounce dog coin company I ordered a 1kg coin version. Now I have a few of these 1kg coins they they are very beautiful. Holding them makes you feel like you have a small hand!

1KG SILVER COIN 2018 YEAR OF DOG - PERTH MINT

OK, now let's step it up some more. Here we get into the cost effective end of the spectrum with larger cast bars.

5KG AINSLIE SILVER BULLION

Our largest silver bar, the 5 kg Ainslie silver bar provides value for money. These are cast bars and each piece has a slightly unique surface pattern. Each silver bar is struck with the Ainslie Bullion logo, along with its weight and purity.

These pieces will make a nice addition to the stack and I'm happy to be continuing to pursue metal in an era of increasing instability in the global financial system. I'll be sure to post pictures when the stack arrives. Have a great week everyone and stack on!