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Jason Hommel presented some interesting information in his most recent report on silver.  Here are a few “numbers” you will find interesting –

$9,000,000,000,000 (9 trillion)Total World Historical Gold Production up to 2012 170,000 tonnes (2012) x 32,151oz/tonne = 5,465,670,000 oz.

$1,400,000,000,000 (1.4 trillion)Total World Historical Silver Production up to 201247 billion ounces, at $30/oz. = $1,410 billion. Note the switch from trillions to billions now.

$428,000,000,000 (428 billion)U.S. Official Treasury-Owned gold: 261,498,899 ounces at $1640/oz. = $428 billion(not independently audited since before 1960’s)

$120,000,000,000 (120 billion)World 2010 Gold Production2500 tons x 29,167 troy oz./ton = 72,917,500 oz. x $1640/oz. = 119,584,700,000

$23,000,000,000 (23 billion)World 2011 Silver Mine Production: 761.6 million ounces, at $30/oz. = $23 billion 3,000,000,000 (3 billion)

World 2011 Silver Investment Demand100 million oz. x $30/oz. = $3 billion

$1,200,000,000 (1.2 billion)USA 2011 Silver Eagle Coin Demand40 million oz. x $30/oz. = $1.2 billion.

Now, we move down from billions to millions

$12,000,000 (12 million)Total estimated profit for all US Coin Dealers on selling Silver Eagles at 1% (after costs) of 1.2 billion

$3000 (3 thousand)Total estimated annual profit per coin dealer for selling Silver Eagles: $12 million divided by 4000Total estimated coin dealers in the USA: 4000

Since all of you want to know what is happening to gold and silver, here are the latest comments from Mr. Gold, Jim Sinclair:

Answering The Cries For Help (jsmineset.com)

May 8, 2012, at 12:02 pm
by Jim Sinclair

My Dear Extended Family,

Today has been interesting in a perverse way. I have heard from every gold short who knows my name. I have heard from every weak gold holder that knows my name yelling for help. This time I cannot answer all the incoming communications. Nobody could.

A month ago I got over 3500 incoming emails in less than three hours. The shorts exulting by email really cannot expect an answer. Even the weak gold and frustrated gold shareholders cannot expect me to assuage their pain one at a time. The reason is it is always the same people pushing the panic button.

I fully expect Alf Fields to be proven correct. As of today nothing he has said is wrong. He feels the gold price has bottomed in this reaction. That is yet to be proven incorrect.

The US dollar is not putting on a grand performance today. The US economy is not going to support the sitting Administration’s desire for another 4 years. QE to infinity is certain even today.

There is a global stock market sell off today which is totally unacceptable as it pertains to the US market in an election year. Liquidity floats all boats and all boats are screaming for that liquidity today.

The cash market continues with its brake on the fully out bearish algorithms attacking the paper gold market.

Re-read the recent interview I did in Futures Magazine as it covers all relevant to gold fundamental issues. Like all other reactions in gold since $248, this will end, and gold will again go to new highs.

Gold companies with 43-101 certified resources that are growing are calls on the gold price that have no end in terms of time.

If you cannot stand the heat you must get out of the kitchen. If you can stand the heat, I firmly believe we will prevail and be rewarded in shares and gold itself.

Please accept this as what I would have told you on the phone. Please accept this as the answer to your cries for HELP by fax and emails as no one can answer this many emails and faxes.

If after you review the fundamentals in Futures Magazine you agree there is no change, buck up your courage and stop watching prices. They will get better as soon as the algorithms do not get their way and mindlessly reverse themselves.

Nothing is better for gold than an implosion on the Dow as it is intolerable to the PPT. That is where the Fed’s and Administration’s head is at. Liquidity floats all boats. The Administration controls the Fed under such circumstances. In the entire history of the Fed, they have never failed a sitting administration.

Respectfully, Jim

I know many of you are getting nervous and want to know what’s going on with gold and silver.  Even my wife Susan is asking me.  Here is what John Embry had to say:

Encouragement from Embry and Sinclair (gata.org)

Dear Friend of GATA and Gold:

Sprott Asset Management’s John Embry today tells King World News that the counterintuitive drubbing of the monetary metals is an indication of the desperate circumstances of fiat money and its managers. He suspects that it presages another 100-percent-up year for the mining shares. An excerpt from the interview is posted at the King World News blog here:


CHRIS POWELL, Secretary/Treasurer

Gold Anti-Trust Action Committee Inc.

Final comments on Buffet/Munger and gold:

Nor does the chart tell the whole story, for what would Berkshire be today without the $700 billion monstrosity known as TARP?