The Phaserl


Smart Money Is Turning To METALS As Bankers Print — James Gowans


James Gowans the President and CEO of Arizona Mining joins us to discuss central bank money printing, the real risk of hyperinflation of the US Dollar as we’ve seen in Venezuela and the trend of big money moving into metals mining stocks, including Zinc mining companies like Arizona Mining. Jim explains that Zinc has actually outperformed gold and silver in 2016 rising more than 40% year-to-date, “A big move has begun,” Jim notes, “there’s something fundamentally wrong with the economy.”

The commodities are rising fast as the decades long bond market bubble begins to deflate. This is going to translate into much higher prices for the stuff people need.  Inflation… and ultimately hyperinflation as John Williams has predicted,  is looking increasingly likely.

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55 comments to Smart Money Is Turning To METALS As Bankers Print — James Gowans

  • Loquito

    Hi Sean, great interviews lately! Especial with Bill Holter=) Keep stacking for everyone and have your preps ready. Our from of exchange is changing and silver/gold has been recognize as money for 6000 years – Ron Paul. For SHTF moment poeple will use silver and gold at the local level. I don’t about Bitcoin or cryptocurrency, maybe international?

  • KRELL427

    Hey Sean your new background music reminded me of TeX and Edna Boil 😀

  • Craig Escaped Detroit

    One of my retired working buddies, some years ago, I was able to get him to spend a couple thousand bucks on a batch of silver. Glad that he did that, and he got it just a bit under today’s price, so he’s not angry about it, but all his money is tied up in MUTUAL FUNDS (Vanguard), in the funds that pays dividends every quarter, and he is totally confident that nothing is wrong even though the markets are at all time highs.

    He believes there will be “minor corrections” but nothing to worry about, as the big drop in 2008-09, came back up and went even higher. He won’t do any preps. He owns a shotgun and a 22 rifle. Thankfully, he actually has a 500 round brick of 22’s, but he has less than 50 total rounds for the 12 gauge (and he lives in a “black Michigan city”).

    He always was “accusing me” of giving him BAD information telling him to SELL his Wall street investments and to buy SILVER, all the way back about 1996, or 2000. He BRAGS how he made the RIGHT choice by ignoring me and his investments went UP 300% since then.

    He always said that MY advice would have cost him a lot of profit, etc.
    SO I looked up the DOW Jones index for the years he said I told him to switch into silver.

    It turns out, the price of silver since that time, has gone UP 400%. I showed him that if he had LISTENED to MY advice, that he would have made an EXTRA 33% MORE money doing it MY way at the time I told him to do it.

    I showed him how he lost that extra 33% by ignoring my advice.

    He never brings it up anymore. He’s Mr. “Always Right, All the time”. A very irritating trait.

    But at least he has seen that my advice, was not as bad as he had made himself to believe. I think he hates that I was right, and his sense of business was not as good as SILVER.

    He still won’t sell any of his “shares” to buy silver, because he truly believes his mutual funds (and the never ending dividends) will support him in his old age. He cannot believe that those funds will crash and the dividends will stop coming.

    I tell him, to be cautious about the big “January” payout, because he’ll be lucky if it still comes. I am confident, that his dividends (and the “value” of his shares), someday in the next few years, won’t even fill the tank of his car. (He laughs at that idea.)

    Sorry to say, that someday, he will CRY at that same idea.

    When he jokes and says he’ll come to live with me, I clearly told him that when those days are here, nobody will make it alive to come all the way down my dead-end street.
    Me and my good neighbor have made this clear to anybody who thinks they can come to live by sucking me dry. The street is called “Dead End” for a good reason.

    My buddy was kinda shocked to hear me say that I love him, but I will SHOOT him (or anybody else) who invades my homestead during the time of crisis. I expect that anybody who shows up at my gate, will be hostile & desperate, and a danger to myself. I told him several times that this is not a joke. He’d better survive without getting near me in those days, because I will not welcome him, I will drive him off without warning.

    I will invite ONLY who I CHOOSE to invite, and nobody else will be allowed. I do have a bit of extra preps just in case my own (clueless) brother & his wife need help (they also live in FLorida), and if HE never shows up for that help, then I will either use it myself, or gift it to some other person.

    I will NOT give away my location/position. I will not put myself in danger to disperse these extra preps. I fear those future days may be quite dangerous to anybody who has even a few extra cans waiting to be eaten.

    • CalSailX

      I’m lucky where I live I can throw them a shovel, and take them to food. Don’t ask me for food if you had to walk pass a quarter mile of it to get to me!

      • Craig Escaped Detroit

        @Cal, Agreed, it’s good to live in an area`that is dotted with farms and a bit of wild foods.

        I’m about 10 miles from the nearest (small) town, and plenty of farms. No subdivisions outside of town. I don’t even live on the 2 lane highway. I’m about a mile down a side road, and I can be at Lowes or Walmart in less than 20 minutes by car.

        I’m near enough and far enough. Too far to walk from town on a hot, thirsty day. Local codes require a minimum of 5 acres per residence. It really spreads every out quite well.

        No overcrowding here.

        Back in Detroit, when it’s quiet, when your neighbor flushes their toilet, you can hear it from inside your own home. That’s TOO close for comfort.

        Thankfully, the loud rap music, shouting and gunfire blocks most plumbing noises.

        During the Dec 31- New Year’s “celebrations”, I would watch TV & sleep in the basement rec-room. One year, just for fun, I tried to keep an accurate count of all the live-fire gunshots (while ignoring the well-known sounds of fireworks), and I lost count, but it was clearly MORE than 1,000 shot being fired.

        Police helicopter flights are always GROUNDED on Jan 1st & 4th oh July for obvious reasons.
        (Afro-Qaeda & BLM-ISIS)

    • glitter 1

      Here are some interesting stats on Gold and Silver price appreciation. During August of 1971 when Nixon severed Gold from the Dollar:

      Dow was at 856 That was 45 years ago,the DOW has returned 2,148%
      Gold was $41oz Gold has returned over the same time period 3,212%(even with the suppression)

      Silver was $1.55oz Silver has returned 1,191%
      However,Silver at $49oz it would be 3,161% This is why Silver is the Banker’s Achilles Heel. Silver is real money.

      Imagine what the percentages would be if there was true inflation adjusted price discovery.Ths why the calls for >$10,000 gold and >$500 silver are not far fetched.

      Gold and silver will always preserve purchasing power over time. When the break/reset
      comes the greatest wealth transfer will take place,from paper to hard assets.
      You will be right,your friend will be wrong.There will be great wailing and gnashing of teeth.I don’t wish for it,but it appears inescapable.

      • Ed_B

        A friend of my Mom’s was a jeweler back in 1970. I was talking to him about various jewelry-related things one day and we got to gold. I asked him how much an oz. of gold cost and he laughed. He said that the official price was around $45 an oz. but that no one could actually buy it for that. Americans could not buy gold back then (president Ford changed that as of January 1975) but jewelers and goldsmiths could. Their price was $125 an oz. or almost triple the “official” price. Crazy times… and they aren’t getting any more sane with time. :-/

        As to people showing up after the SHTF, they better come with their hands full and ready to work for the common good. No empty hands / bellies or layabouts allowed. There will be *1* warning shot fired. After that, it’s on like Donkey Kong.

      • Craig Escaped Detroit

        @GLITTER, YES, EVEN THE NATIONAL DEBT CLOCK webpage puts silver’s value today well over $800 per ounce. No telling what will happen later.

        I found it interesting & alarming that one ounce of silver in Venezuela can buy up to 6 months of food from some farmers as of a couple weeks ago.

        If the USSA falls down a similar hole, then it may become possible to support a family of four with just 40 ounces silver for an entire year, the food will take 16 ounces and the remaining 24 ounces may be enough to pay all the other expenses, taxes, utilities & automotive expenses.

        (I’m just taking a ballpark guestimate of monthly food outlays compared to all the other outlays. food being “xxx” value and all the other stuff is “xxx” plus 33% more.)

        Those guestimates are based on today’s Venezuela “silver-to-food ratio”. It’s pretty amazing to think that it may be possible for a family of 4, to be able to survive or even to prosper on 40 ounces of silver for a full year.

        That’s just 3.33 ounces per month. I would not be shocked if these numbers are valid in some African , Asian & Middle Eastern lands today.

  • Paul

    What a shocking talker, errrrrrr, um, ahhh, how do people without
    communication skills get high ranking positions in life ?

  • Tuna

    Zinc. Who woulda thunk it?

  • rich

    German Savers Lose Faith in Banks, Stash Cash at Home
    Low interest rates and the prospect of fees on bank deposits are helping drive a boom in home-safe sales
    Ulrike Dauer
    Aug. 29, 2016

    HAMBURG—German savers are leaving the security of savings banks for what many now consider an even safer place to park their cash: home safes.

    For years, Germans kept socking money away in savings accounts despite plunging interest rates. Savers deemed the accounts secure, and they still offered easy cash access. But recently, many have lost faith.

    “It doesn’t pay to keep money in the bank, and on top of that you’re being taxed on it,” said Uwe Wiese, an 82-year-old pensioner who recently bought a home safe to stash roughly €53,000 ($59,344), including part of his company pension that he took as a payout.

    Interest rates’ plunge into negative territory is now accelerating demand for impregnable metal boxes.

    Banks and other financial institutions themselves are also keeping more cash. Reinsurance giant Munich Re AG said earlier this year it would cache over €20 million in cash in a safe, alongside gold bars the company stockpiled two years ago.

    “We are testing that and are happy that this works without any glitches and at reasonable costs,” said Chief Financial Officer Jörg Schneider. The reinsurer said it would consider augmenting its cash stash.

    Part of the motivation is a dearth of alternatives. Dwindling returns on life-insurance policies and rising real-estate prices—traditional German retirement investments—mean people are letting their money languish.

    Germans are particularly focused on safes because they prefer cash to plastic. “Only cash is real,” goes an old saying.

    Roughly 80% of German retail transactions are in cash, almost double the 46% rate of cash use in the U.S., according to a 2014 Bundesbank survey. Germans also keep more cash in their wallets and visit ATMs more often, withdrawing on average $256 at a time, the study found. Americans withdraw $103 on average.

    Germany’s love of cash is driven largely by its anonymity. One legacy of the Nazis and East Germany’s Stasi secret police is a fear of government snooping, and many Germans are spooked by proposals of banning cash transactions that exceed €5,000. Many Germans think the ECB’s plan to phase out the €500 bill is only the beginning of getting rid of cash altogether.

    Ms. Metzger is a member of an activist group demanding the existence of cash be guaranteed in Germany’s constitution.

    “I don’t want to become completely transparent,” she says.” I don’t want everyone to know whether I buy chocolate, strawberries or mangoes at the store.”

    • Ed_B

      “I don’t want everyone to know whether I buy chocolate, strawberries or mangoes at the store.”

      Riigghhhtttt… lol. No one cares whether someone else is buying these things. But if they are buying ammo, PMs, and other prepping supplies, that’s a whole new ball game.

  • Hi Sean,

    Nice interview but one thing I never get. Mr Gowans says he expects the price of PM to go higher. We all know the paper to physical leverage is 100+:1. Open interest in paper PM near highest ever. One cannot corner a printer (of paper PM), never! We know the history of the london gold pool. If a similar run on gold would happen it would mean all paper PM will be dumped and thus the price would drop or the market where the trades are made will call force majeure or closed. All the while when the physical would be unavailable. Say 2008 on steroids. Hope you will ask your expert guests about that dynamic one day.

    Regards, Hugo

  • mike

    Dont see any real demand for silver other than a little industrial, if there was real demand silver would not be available. It’s simple common sense the numba’s are wrongggg. Instead of attacking me how about trying to figure out what is really happening. There is obliviously a lot more available than reported.

    Only BTC is money..AG lost 60& of it’s value in only a few weeks. That is real lost value.

    • Craig Escaped Detroit

      According to the dealers who deal with “industrial amounts” of gold and silver (such as Rob Kirby), there is definitely a world wide shortage, even though our corner “candy stores” have a couple hundred ounces of silver, and perhaps a dozen or more ounces of gold.

      But just try to put in an order for 50 or 500 of those silver bars that weight 5,000 ounces each, or try to put in an order for $50-500 million dollars worth of GOLD, and Kirby says, you’ll often have to pay a 20%, and in some cases, more than 30-40% PREMIUM to get your order filled, and it can take weeks, or even several MONTHS to get it filled.

      Just look at the Eric Sprott physical Silver fund, and when they put in their most recent HUGE order, it took MONTHS to get it SLOWLY filled, as it came “trickling in”.

      That is not evidence of any abundance. You’d think the sellers would be in a hurry to grab all the money on delivery, so there is no other reason to slow down deliveries unless the stuff is not available, eh? It’s not like their waiting for their “bitcoins” to clear the exchanges before they deliver the physical.

      But again, call up the small PM shops, and they always seem to have enough supply to keep up with $5,000 or even $15,000 worth of sales in a single week, but ask them to fill a $50 Million dollar order and it’s an entirely different situation.

      And don’t forget, that Gold and Silver is at an ALL TIME HISTORICALLY highest price EVER, in countries OUTSIDE of North America, and NEAR all time high levels in many others.

      Just because there are a thousand pretty girls and hookers offering their services on the streets of Hollywood or Vegas, does NOT mean you can find the good ones in such big numbers, in Boise Idaho, Birmingham, Kalamazoo, Flint-Mi, etc.

      A wise person, when analyzing WORLD markets, must be able to look beyond the borders that are in your own back yard. Gold and Silver are a world wide market, and the USA is a tiny part of it, and just happens to be “ground zero” for the manipulations.

      Yes, it is manipulated, but not as well as they would like it to be. Back in 2001, when G.W. Bush was elected (selected) as President, silver was only $4 per ounce, and today, it’s nearly $19. That is a clear sign that the manipulators, are losing their world-wide grip on it.

      And no big banks have yet imploded (at least none that we can see). When something like Doosh Bank’s derivatives ripen, or any number of events poop in the punch bowl of world markets, it’s gonna be ‘on like Donkey kong’.

      • mike

        Craig that is the point…There is no shortage at all. You can purchase as much physical as you want there will be plenty more. If there was a shortage there would be none available period.
        For the sell out scenario to work there must be one thing…DEMAND and that is NOT there. In the last 3 years mines have doubled the amount of above ground inventory to 2 billion ozs according to David Morgan so how could there be a deficit?
        There is simply no demand for the stuff.
        Never has there been an independent audit of mines like what recently happened in the American oil industry..Turns out the US has more oil than Saudi Arabia because all other reserve calculations were done by faulty gubberment numbers.
        Sorry man don’t believe any of these people and it’s not that I think they dishonest but they are simply 100% wrong. They come to their conclusions based on fudged numbers. Not one of them doing real work. Haven’t seen any of them go to mines to see what the daily/weekly/monthly production is independently of mines numbers for example. Have heard Mining CEOs get interviewed with soft ball and leading questions but these CEOs have something to protect and that is the perceived rarity of PMs. If they tell the truth then there goes their dollar dollar bills.
        Basically what I am saying is since Eric retired at 35 he has the time to go to First Majestic for a year and run independent audit. He can collect numbers ranging from daily production to monthly. He should also have access to First Majestic’s payroll and energy bills. At the end of the year we can compare Erics findings to FM and see how they manipulate or not. We will never know until we have someone willing to get to the truth which not one of you is willing or even asks the tough questions, not one.

        • Craig Escaped Detroit

          That was a well articulated post with a calm description of your points. I enjoy it when you present your arguments as well as this. Bravo.

          So it looks like we’ll have to wait for time to reveal the hidden truth, as we all know that truthful, independent audits never seem to appear, and even if they did, how could we be sure?

          • KRELL427

            Well articulated BS, until you have personally gone out and tried to acquire 1 ton of physical gold and then get back to us how it went, I will believe my own research.

            • Eric

              Don’t you know Krell?

              Only bitcoin is munny because only bitcoin spends.

              According to mike, cash doesn’t spend. Coins don’t work. Especially in vending machines. Credit doesn’t spend. And silver which has been a medium of exchange for 6000 years doesn’t spend so it can’t be munny. And 900 other crypto currencies don’t spend either. Mike is a monetary expert and only bitcoin is mummy cuz mike said so.

              Just don’t ask him what the difference is between a long contract and a short contract.

              Because he doesn’t know that one.

              • Eric

                Mike, you can find most of the answers to your questions about First Majestic Silver if you only look.


                • mike

                  Eric it is not just FM lol..The only reason I would have you audit them is to get a real price per oz it cost a primary miner. FM says $10 an oz but I would be willing to bet for a primary miner it’s $1-2 an oz. We know the total average production (Byproduct/primary) price per oz is less than .10/oz.
                  FM is inconsequential to the silver market since they contribute virtually nothing to yearly mine production.
                  You just don’t get it. There is a mountain of silver coming from somewhere if you actually believe these mining/demand mine reported and gubberment numbers. If you believe the numbers then we should have run out of silver years ago…Not a spec to put in your pocket.

                • Eric

                  12 million ounce of Silver and 20 million Silver equivalent oz. per year is hardly nothing.

                  Let’s see you do it.

                  I have already gone through their numbers and the numbers you can’t seem to figure out. You should really read The Silver Manifesto by Christopher Marchese and David Morgan.


                  That should clear up your continued misunderstanding.

                  I really do have better things to do then waste more time with you since I know you don’t really want answers to your questions. You’re just trying to be a pest. Why don’t you call investor relations and ask them to clarify what you can’t seem to understand? Or try to set up an appointment if you are unhappy with a company’s filings rather than try to force me to do it.

                  Keep looking for your “mountain of silver.” If that doesn’t work, just keep looking.

            • Eric

              Also, there is not 2 billion oz in above ground inventory.

              Don’t misquote David Morgan.

              Mike, you don’t even know the correct numbers.

          • mike

            Contrary to popular belief I am not against PMs. Something is just not right with the numbers. That leads me to believe the mining industry as a whole is just as responsible for manipulation as the paper market.

            Recently I found out that mining reserves are not reported until they’re ready to be mined.
            If a mine has one “Shaft”, the reserves are only counted as far as the mines are planning to take that particular “shaft”. It dies not count future viable “Shafts” above, below or to either side.
            Currently there is 25 years of reported mining reserves of silver. That means in reality there is an unlimited supply of silver.

            That doesn’t mean if there is a massive influx of demand that silver wont skyrocket. It just means silver is not that rare or a better way of looking at it, as rare as a gallon of diesel makes it.
            If massive demand comes into play then I am sure silver will skyrocket in actual purchasing power. I think you’ll have about a year before mines pick up the slack to sell and profit. If the dollar is devalued you might actually get the real demand it takes to push silver a lot higher. Either way you will have a good window of a year or so to sell. Its not just going to spike up one day to all time highs then crash.

            Krell currently if you have the money you can go buy 100 tons of the stuff no problem..Might be a delivery delay, it weighs a lot.

            • AgShaman

              As long as silver’s price is higher than the diesel required to get it out of the ground it will continue to be mined.

              There are many gimmicks in the world of mining:

              Byproduct credits, proven and probable resources, listing the best “test” holes drilled when posting grams/tonnage.

              Since silver is currently used as an industrial metal it’s supply/demand fundamentals are still somewhat limited. Yes, there are those with the historical knowledge of the bimetallism era where silver was used as money along with gold. This is why a subset of humans choose to stockpile it, because they believe silver will be needed in the future for more than just industrial needs. They are playing off a hunch that should the world fall into enough financial disarray….the demand side of the equation would change drastically and you would quickly lose alot of the above ground supply you are claiming.

              I don’t really think it’s as big of a deal as you make it out to be. Humans have been implementing ways to store their economic labor for many hundreds of years. Why people are such control freaks about it is the real question. If I thought I could bolster my purchasing power/retirement years with stockpiling beanie babies….how does that hurt/affect you?

              Sooner or later, humans may have to grow up and realize they have been programmed to be both herd animals and control freaks. Since your time on this planet is rather short…it begs the question:

              Why can’t you let other humans (I’m talking about myself now) be left alone to their own devices when it comes to being both the design engineer and captain of my financial “ship”

              • Eric

                “I don’t really think it’s as big of a deal as you make it out to be.”

                Its not. Its about the US DOLLAR. Not Silver.

                “Why can’t you let other humans (I’m talking about myself now) be left alone to their own devices when it comes to being both the design engineer and captain of my financial “ship””

                Because mike is not here to learn anything. He just needs attention because he’s narcissistic.

    • Eric

      mike, India imported 228 million oz. last year.

      You’re not looking hard enough.

      • KRELL427

        Eric,That’s why the headline says “smart money is turning to metals”. The rest of the money can go where these genius’s feel safest. Harry Dent made me laugh last night on CTM, ” If this thing doesn’t blow all to hell in the next 2 to 3 years,I’m going to quit my profession, move to New Zealand to be a chauffeur and shut the hell up” He is still calling for $400 gold.

      • mike

        Eric once again your missing the point..The Silver Institute? A bureaucratic institution comprised of world wide miners? Who’s interest do they represent?
        Through the Silver institute world wide miners have the opportunity to coordinate efforts as not to over supply the market and kill the price.
        Sorry don’t believe their numbers at all. Please point out legitimate numbers from a true independent auditor…Opps there is no such thing.
        Please stop with your ridiculous post that have zero credible information in them. The only thing someone has to do is go online to you favorite bullion dealer or the Comex to purchase as much physical as you can afford.
        There is no shortage..That simply means someone is fudging the books.
        That is why I want you to actually “Help” people like you say you want to do and go Audit first hand on the ground one small primary miner.
        I want you to see daily production. I want you to see where it’s shipped for refinement. I want you to make sure if they over produce they do not hold on to product etc. I want to know the true cost per oz it cost a primary miner.
        At the end of the year we will compare your real actual accounting to FMs data to see where the disconnect is located.
        If your retired it would something good for the rest of the people you want to help. You obviously are not doing anything at all of value only patrolling this site 24/7. Why not do something constructive?
        I think everyone here would chip in a little for your expenses if you cant afford it.

    • Eric

      Moishe, I picked up a copy of Night by Elie Weasel today. Mostly so nobody else reads that BS. Didn’t cost me anything.

      I’ll add it to the firewood pile.

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