The Money Chart, 2012

(Potential Demand for Silver and Gold)

Silver Stock Report

by Jason Hommel, May 7th, 2012

It's important to review the fundamentals from time to time. It is important to not only study the current supply and demand for silver and gold, but potential demand. This potential demand is the total amount of money and/or assets that could be sold to buy silver, and is reflected in this study. Of the two, current vs. potential, I think potential demand is far more important, because it shows the potential change and likely change that will increase the value of silver.

I published these figures in 2003, 2006, 2008, (links to prior years can be found here: http://silverstockreport.com/2008/moneycharts.html ) and now here's another update in 2012. Following each figure is the source and YEAR of the info. The source and YEAR is very important. Sometimes, the source is several years old, because this kind of data is hard to gather. For many years, it was extremely difficult to source the world bond market size, or the size of total issued and printed money. In my prior reports, I've seen many people re-post my work without listing a source which then makes it difficult for me to later track down current info, because when doing a google search, I encounter people just re-posting my data, without listing either the source or year! Therefore, if you copy this data, please acknowledge this as a source, and link back to www.silverstockreport.com/2012/money-chart-2012.html , and source the year! The source is important not only for future research, but so you can verify the data, and see that I'm not making these things up. There really are very many things that are completely over valued, especially when compared to real money, which is silver, and gold.

It should be noted that M3, a measure of money in the banks, was discontinued by the Federal Reserve a few years ago, probably because the number was increasing so fast, it was embarassing.

For my European readers, or American readers who forgot the numerical definition of very large numbers.

1,000,000,000,000: 1 Trillion dollars
       1,000,000,000: 1 Billion dollars
              1,000,000: 1 Million dollars

$708,000,000,000,000 (708 trillion)
Amounts outstanding of over-the-counter (OTC) derivatives, end-June 2011, Table 19
http://www.bis.org/publ/otc_hy1111.htm
http://www.bis.org/statistics/otcder/dt1920a.pdf

$70,000,000,000,000 (70 trillion)
World GDP, Gross Domestic Product (annual) (2011, CIA)
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)

$69,900,000,000,000 (69.9 trillion)
Domestic debt securities amounts outstanding, all issuers, Sept 2011, Table 16A
http://www.bis.org/publ/qtrpdf/r_qa1203_anx16a.pdf

$45,000,000,000,000 (45 trillion)
World Market Capitalization of Listed Companies, 2011
http://data.worldbank.org/indicator/CM.MKT.LCAP.CD/countries?display=graph

$28,700,000,000,000 (28.7 trillion)
International Debt securities, all issuers, all countries, Dec. 2011 Table 11
http://www.bis.org/publ/qtrpdf/r_qa1203_anx11.pdf

$15,700,000,000,000 (15.7 trillion)
US National Debt (of the U.S. Government) May 7th, 2012
http://www.treasurydirect.gov/NP/BPDLogin?application=np
http://www.brillig.com/debt_clock/

$15,000,000,000,000 (15 trillion)
US GDP (Gross Domestic Product) (Value of Annual Economy of the United States) 2011
http://en.wikipedia.org/wiki/U.S._GDP

$12,200,000,000,000 (12.5 trillion)
China Annual GDP (PPP) Purchasing Power Parity, 2012
http://en.wikipedia.org/wiki/Economy_of_the_People%27s_Republic_of_China

$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.
http://www.gold.org/investment/why_how_and_where/faqs/#q023

$3,600,000,000,000 (3.6 trillion)
U.S. Federal Spending -- Fiscal year 2011
http://en.wikipedia.org/wiki/US_government_budget

$3,200,000,000,000 (3.2 trillion)
Estimated Annual World Oil Production, April 2012, est.
90 million barrels/day, at $98/barrel x 365 day/year = $3,219,300 million = $3.2 trillion
http://en.wikipedia.org/wiki/World_oil_production
http://omrpublic.iea.org/World/Wb_all.pdf
(side note, the world did NOT hit peak oil production at any time since 2005, when the world production was 78 million barrels/day)

$1,600,000,000,000 (1.6 trillion)
2011 Budget Deficit of the United States federal government -- Fiscal year 2011
http://en.wikipedia.org/wiki/2011_United_States_federal_budget

$1,400,000,000,000 (1.4 trillion)
Total World Historical Silver Production up to 2012
47 billion ounces, at $30/oz. = $1,410 billion
http://www.gold-eagle.com/editorials_99/mbutler110799.html
http://www.gpmgroup.com (2008 annual yearbook)

Note the switch from trillions to billions now.

$532,000,000,000 (532 billion)
Market Cap of Apple Stock
http://finance.yahoo.com/q?s=aapl&ql=1
(Note, when a company is "worth" more than all the gold that the nation has, I think that company is over valued.)

$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)
http://fms.treas.gov/gold/current.html

$144,000,000,000 (144 billion) June 2011
Silver Derivatives (Other Precious Metals)
Amounts Outstanding of OTC (Over the Counter [non-reportable]) -- Commodity Linked Derivatives -- Table 22A
http://www.bis.org/publ/qtrpdf/r_qa1203.pdf

$120,000,000,000 (120 billion)
World 2010 Gold Production
2500 tons x 29,167 troy oz/ton = 72,917,500 oz. x $1640/oz. = 119,584,700,000
http://minerals.usgs.gov/minerals/pubs/mcs/2011/mcs2011.pdf -p.67

$23,000,000,000 (23 billion)
World 2011 Silver Mine Production:
761.6 million ounces, at $30/oz. = $23 billion
http://www.silverinstitute.org/site/supply-demand/silver-production/

$3,000,000,000 (3 billion)
World 2011 Silver Investment Demand
100 million oz. x $30/oz. = $3 billion

$1,200,000,000 (1.2 billion)
USA 2011 Silver Eagle Coin Demand
40 million oz. x $30/oz. = $1.2 billion
http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=MintageTotals

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 4000
Total estimated coin dealers in the USA: 4000

If selling silver coins with "high premiums" is a scam, it's the least costly scam in the monetary universe, in other words, selling honest silver as money is the most honorable business in the world. In fact, it might just also be among the least profitable of businesses to enter.

You can look us up and call us at www.jhmint.com

We are a small business, but a relatively large one in the gold and silver trade. We think we might be among the top 20-30 coin dealers in the USA, based on business volume. Most that are bigger require application forms or large minimum order sizes. We also ship among the fastest, often faster than our suppliers, as we put product in the mail either the same day or the day after your wire transfer clears.

Other sources:
http://www.world-exchanges.org/statistics
http://data.worldbank.org
http://www.bis.org

Market Cap of Total Public Companies, listed and sorted by largest national totals, 2011
http://tinyurl.com/86skplq

=====

I strongly advise you to take possession of real gold and silver, at anywhere near today's prices, while you still can. The fundamentals indicate rising prices for decades to come, and a major price spike can happen at any time.

JH MINT & Coin Shop
13241 Grass Valley Ave
Grass Valley, CA 95945
(530) 273-8175
www.jhmint.com

Minimum telephone order $5000 for free shipping, USA shipping only.
Open 10AM to 5PM Pacific Time, Monday to Friday, closed weekends and bank holidays. (Also Closed from Dec. 25th to Jan 1st)
Kerri handles internet phone orders:
kerri@jhmint.com
(530) 273-8822

NEW Location in Auburn, CA!
JH MINT Silver & Gold
1760 Highway 49 A140
Auburn, CA 95603
(530) 889-1086
www.jhmint.com

You can also buy silver from my mom at www.momssilvershop.com
Mom will ship overseas, even large orders up to $300,000 or larger, and also in lots of more or less than 100 ounces.
3510 Auburn Blvd #12
Sacramento, CA 95821

Sincerely,

Jason Hommel
www.silverstockreport.com
www.bibleprophesy.org

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