Published On: Thu, May 4th, 2017

Americans Pawn Gold To Go Further Into Debt: US Gold Scrap Market Drying Up

Americans Pawn Gold To Go Further Into Debt: US Gold Scrap Market Drying Up

Americans Pawn Gold To Go Further Into Debt: US Gold Scrap Market Drying Up

After a U.S. economy disintegrated in 2008, due to a Banking and Housing crisis, Americans pawned off a record volume of gold.  How many gold?  Nearly, 32 million oz (1,000 metric tons).  That’s one heck of a lot of gold.   Matter-a-fact, U.S. bullion throw supply during a rise of 160 metric tons (mt) in 2011, was some-more than any other nation in a world, even India and China.

It is utterly hapless that Americans have pawned off their best item usually to go serve into debt.  Thus, enabling them to buy some-more rubbish and trinkets they unequivocally don’t need.  This is utterly a conflicting of Americans who turn being intensely spare and financially obliged after a 1930’s Great Depression.  Today, banks have done it easy for Americans to BUY NOW and PAY LATER.

The consequences of this “Buy now, compensate later” mercantile indication is explained in this new zerohedge article, 45% Of Americans Spend Up To Half Their Income Repaying Credit Card Debts:

First, roughly 50% of Americans have debt balances, incompatible mortgages mind you, of over $25,000, with a normal chairman overdue over $37,000, contra a median personal income of usually over $30,000.

Therefore, it’s not formidable to believe, as Northwestern Mutual points out, that 45% of Americans spend adult to half of their monthly take home compensate on debt use alone….which, again, excludes debt debt.

Because 45% of Americans are profitable adult to half of their monthly income to compensate down credit cards and debt, they can’t use this income to squeeze new products and services.  Thus, a towering volume of a U.S. Gross Domestic Product (GDP) has been brought forward… interjection to easy credit and credit cards.

And, This is what Americans spent a many income on in a initial quarter:

But that doesn’t meant that Americans stopped spending completely, utterly a contrary. According to a BEA’s “goalseeked” models, even as sell sales tumbled, as Obamacare continued to empty disposable income divided from other discretionary purchases, Americans – who spent distant reduction on cars, wardrobe and housing in a initial entertain than in Q4 – were scrambling to buy… recreational vehicles!?

When we transport adult and down on a widespread where we live, we see a lot of these Recreational Vehicles (RVs), generally on a weekends.  What is even some-more hilarious, is to see a outrageous 4X4 lorry pulling a vast RV, that is also pulling a smaller trailer behind it with dual ATV’s on it.  All of these vehicles devour one ruin of a lot of fuel.

This remarkable proclivity for Americans to get into a RV and leave a RAT RACE (for a weekend), creates ideal clarity to me.  This is an intensely critical indicator display how Americans would rather go serve into debt adult to their eyeballs…. usually to GET AWAY from it all.   Americans spending a record commission of their supports on RV’s to shun a insanity, suggests that a economy is removing prepared to hurl over and tumble off a cliff.

Of course, Americans always wish to do all BIG.  So, if we have a income (or credit) and a really vast truck, we can lift one of these babies down a highway:

Most of a RV’s we see, have dual axles.  However, this one has 4 axles and some-more block feet than some tiny homes in comparison areas surrounding large cities.   Unfortunately, RV’s will be one of a initial equipment that will go archaic in a United States when a domestic oil attention disintegrates.

Regardless, let’s get behind to a drying adult of a U.S. delegate bullion supply market.

U.S. Gold Scrap Supply Declines To The Lowest Level In Recent History

According to a information put out in a GFMS 2017 World Gold Survey, U.S. bullion throw supply fell to a low of 58.7 metric tons (1.9 million oz) in 2016 contra a record 160 metric tons (5.1 million oz) in 2011:

What is engaging to see in this draft is that U.S. bullion throw supply in 2016 (58.7 metric tons) is scarcely dual and a half times reduction than it was in 2010 (143 metric tons) while a bullion cost was even higher.  Thus, Americans pawned off a good understanding some-more bullion in 2010 when a cost was reduce during $1,225 compared to $1,267 in 2016.  Which means, a U.S. bullion throw supply marketplace is drying up.

This can be some-more clearly seen in a following draft below:

Not usually has a U.S. bullion throw supply depressed 2.5 times from a rise in 2011, it is also reduction than it was in 2003 when a bullion cost was 3.5 times less.  Americans pawned 67.6 metric tons (mt) of bullion in 2003 when a cost was $363 on ounce.  However, with a bullion cost during a many aloft turn of $1,267 final year, U.S. bullion throw supply fell to a low of 58.7 mt.

Again, a information implies that a U.S. delegate bullion throw supply marketplace is expected drying up.

As was settled in a commencement of a article, sum U.S. bullion throw supply equaled scarcely 1,000 mt from 2008 to 2016 (actual figure was 982 mt).   What is even some-more interesting, is if we review U.S. valuables direct contra bullion throw contra China India.

When a bullion cost reached a rise of $1,900 in 2011, U.S. valuables direct was 60.3 mt.  Again, this is a year U.S. bullion throw supply reached a record 160 mt.  We contingency remember, many of bullion throw comes from recycled bullion jewelry.  Which means, Americans pawned 266% some-more bullion than their bullion valuables direct in 2011.

Here are a 2011 Gold total for a U.S., China India:

2011 U.S. Gold Scrap 160 mt / 60.3 mt Gold Jewelry Demand = 266%

2011 Chinese Gold Scrap 144 mt / 547 mt Gold Jewelry Demand = 26%

2011 Indian Gold Scrap 58 mt / 667 mt Gold Jewelry Demand = 9%

As we can see, Americans pawned off 266% some-more bullion than their annual bullion valuables direct in 2011, contra 26% for a Chinese and usually 9% for Indians.  While some Chinese and Indians were offered their bullion valuables as throw in 2011, a infancy were holding on to it, generally in India.  Of course, this is no tip as India tradition is to build their resources by appropriation bullion jewelry.

Americans are in serous difficulty as they have sole off a family’s bullion wealth to go serve into debt, while a Asians and Indians continue to acquire a yellow changed metal.  When a markets finally crack, really few Americans will be holding gold.  Unfortunately, a infancy of Americans will see their rarely arrogant investments of STOCKS, BONDS and REAL ESTATE fall while a value-price of bullion skyrockets. – SRSroccoreport

 

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