You’ve been reading about gold and guns ever since the election results were in…
The two are certainly not mutually exclusive; charts for both are hyperbolic as interest in physical bullion soars harmoniously with record-breaking gun sales.
Life, Liberty, and the Pursuit of Happiness
Individuals are hungry for wealth in these poverty-stricken times — and nations are hungry for certainty, a way to protect their economy from currency debasement.
People are stocking up on gold and guns to protect their families and their wealth.
What people haven’t been talking about nearly as much is how this mentality has created a burgeoning black market for the precious metals sector.
Capitalists and survivalists alike are making a living the best they can.
For some, this means engaging in illegal mining activities and gold smuggling.
The Philippines and Mongolia are two prime landmasses, rich with minerals and metals…
Miners know this and are taking advantage of the opportunity. Mongolian gold ninjas have risked their lives to engage in one of the most lucrative gold rushes of the century to support the black market demand for gold in China.
The Business Savvy Game
Meanwhile, the Philippine government (much like our own) continues to pass new laws and enforces outrageous taxes to get their “fair share of other people’s sweat, especially related to mining projects.”
After a 7% tax rate was required for precious metal sales last year, smaller producers began selling to black market smugglers instead…
According to Assistant Central Bank Governor Manuel Torres, head of the refinery operations, roughly 95% of all gold mined in the Philippines is being sold to smugglers — and transported out of the country 100% illegally.
Expert Simon Black explains the discrepancy between how much gold smuggling is reported and how much is actually taking place:
In 2011, central bank gold purchases dropped at an annualized rate of 4%, then 76%, then 88% during the second, third, and fourth quarters. In the first quarter of 2012, gold purchases were down 92%. It’s staggering.
Most of this smuggled gold finds its way here to Hong Kong, and then onward to China, where there is a voracious demand for gold despite rising prices.
Of course, it’s perfectly legal to bring gold, tax-free, into Hong Kong.
This is why when Hong Kong reports its official trade statistics, “gold imports” from the Philippines are 30 times higher than what the Philippines government reports as “gold exports” to Hong Kong.
Nations like China, India, and Iran have been stockpiling silver and gold at unprecedented levels to protect their economies from the looming crisis.
This hasn’t been easy with Western sanctions, but billions’ worth of silver and gold has been shipped to Dubai on behalf of Iranian buyers — $2 billion worth of gold was shipped to Dubai in August alone.
Experts believe an undisclosed, but quite large, number of carriers are behind the smuggling arrangement.
Obviously, the U.S. isn’t happy about this…
The government is in the midst of setting up new sanctions against Iran that could force Turkey to end their “gold deal” with Iran.
Due to global economic uncertainty, Iran demanded back in February that Turkey pay for international goods solely in gold. So far Turkey has complied, exporting “massive quantities of gold” per their deal with Iran.
Between January and September 2012, Turkey exported at least $6.4 billion in gold to Iran (and that’s only what was officially reported). Iran has Turkey pigeonholed into this agreement, as it supplies 18% of Turkey’s gas and 51% of the country’s oil.
Evidently, raging gold demand is creating a supply crunch that has nations desperate for deposits and mines.
A number of international deals are under way, and a public rush for the yellow metal will clear retailers’ shelves in no time.
This is only the beginning…
Best wishes for a prosperous future,
Brittany Stepniak
for Wealth Daily
Why Silver Has Legs: The Silver Lady’s 2,477% Gain
Silver demand is at a nadir, silver is below its mean, and supply looks worrisome. The Hammer confronts his past and comes up a winner.
World Coal Investment Opportunities: Buy Coal!
Cheap natural gas, stricter emissions regulations, the rapid reduction in renewable energy production costs are slowly chipping away at coal’s market share here in the U.S.
More Gold: Electorate Zombies and Panic on the Other Side
The zombie apocalypse is here. But instead of the consumer, the zombies have taken the form of the American electorate.
The Oil Field that Keeps on Giving: Obama’s $180 Billion Payday
Keith Kohl shares his take on Obama’s $180 billion payday — and why it won’t keep investors from striking oil in the Bakken.
China Back to Growth: Best Performing Market This Year Is…
The Shanghai 180 Index has fallen from a high near 13,000 five years ago to 4,600 today, and now it’s 300 Points Away from a Flashing Green Buy.
U.S. to Rival Saudi Oil Production: Saudi America
Tell me… as an investor, do you make more money if you know how big something is going to be… or if you’re told how big something is?
China Manipulates Investors: Fudged Numbers
Signs of recovery are coming from China and money is flooding back into Chinese companies… There are some gems here, but China is trying to trick investors.
Brent vs. WTI Crude: Losing a Benchmark, Gaining a Future
Editor Keith Kohl explains how Brent overtook WTI as the global benchmark for oil prices, and why U.S. investors couldn’t be happier.
Global Economic Collapse: Start Taking Steps to Protect What You Love
They continue to stoke your fears of isolated events — Iran, North Korea, Israel, West Nile, Zombie Apocalypse — while the most damaging events continue to take place right under your nose.
