{"id":69510,"date":"2015-03-13T10:00:35","date_gmt":"2015-03-13T14:00:35","guid":{"rendered":"http:\/\/countingpips.com\/?p=69510"},"modified":"2015-03-13T10:59:49","modified_gmt":"2015-03-13T14:59:49","slug":"how-apples-gold-watch-will-keep-the-bull-market-ticking","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/03\/how-apples-gold-watch-will-keep-the-bull-market-ticking\/","title":{"rendered":"How Apple\u2019s Gold Watch Will Keep the Bull Market Ticking"},"content":{"rendered":"
March 13, 2015<\/div>
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By David Smith<\/strong><\/p>\n

\"Apple
\nAn interesting message hit the news wires around the world in late February. Among many others,\u00a0Mining.com<\/a>\u00a0announced breathlessly, \u201cApple buying a third of world\u2019s gold to meet demand for iWatch.\u201d The text continued with:<\/p>\n

Technology giant Apple may soon buy up one third of the world\u2019s gold in order to meet the demands of its highly anticipated Apple Watch, according to reports. Interest in the high-end model, featuring 18-karat gold casing, is picking up and the firm is already taking the necessary steps to have enough of them in stock.<\/em>
\nInstantly, the chat rooms filled with prognosticators debating the merits or lack thereof for Apple\u2019s next big thing. But Apple\u2019s announcement is\u00a0both\u00a0<\/strong>less and more important than you might think.
\nIt is less important because you can\u2019t predict how popular the watch will be \u2013 let alone how much gold will go towards its production. Making investment decisions based upon a news tag like this one is simply not good strategy.\"Apple<\/p>\n

In the overall scheme of things, how much supply an Apple gold watch soaks up is unlikely to be a game changer compared to\u00a0other factors <\/em>influencing the gold supply\/demand universe.<\/p>\n

What makes this announcement very important is something that David Morgan has often discussed in his interviews at\u00a0Money Metals Exchange<\/a>\u00a0and in presentations at conferences across North America. That concept is\u00a0incremental demand<\/em>.<\/p>\n

Over time, the gold and silver bull markets will be driven by the total overall demand change in relation to available supply. But big price changes are determined\u00a0on the margins<\/span>\u00a0of demand. It is the continued addition of new uses for the precious metals \u2013 in both the industrial and investment arenas \u2013 that adds fuel to this long-term bull market.<\/p>

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Acorns Can Become Mighty Oaks<\/strong>
\n\"Benz\"
\nIndividually, the myriad of new uses are small potatoes in terms of how much supply they command on their own. But taken together, they create small waves of desire to acquire these items. Over time, they have the potential to become demand \u201cstraws\u201d that can break the supply camel\u2019s back. This marginal action, combined with the primary big volume consumption drivers, may cause the price of a commodity \u2013 any commodity \u2013 to shift from a solid, plodding bull run, into a vertical, public mania-fueled moon shot.<\/p>\n

Here\u2019s one marginal demand change (just one of over 10,000 commercial uses) for silver: It\u2019s a Mercedes-Benz Vision G-Code, whose skin acts as a solar panel.<\/p>\n

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Fear and Love Drive Gold and Silver<\/strong><\/p>\n


\n<\/strong>Frank Holmes popularized the terminology used to describe the twin drivers of gold demand, calling them the Fear Trade and the Love Trade. People around the globe buy and hold gold when they fear geo-political or economic uncertainty.<\/p>\n

By that definition, many places in the world today demonstrate a need for the kind of financial protection that precious metals have always offered. Venezuela, Argentina, Russia, Iraq, the Eurozone \u2013 the list gets longer by the week.<\/p>\n

Now too, this increasingly includes the United States, as investors and those who wish to protect a portion of their hard-earned savings from continued erosion by government deficit-spending and under-reported inflation start demanding more gold and silver.<\/p>\n

But people also buy\u00a0precious metals to give as gifts, to show affection and respect<\/a>\u00a0\u2013 the Love Trade. Massive purchases throughout Asia, most notably in India and China, have established a durable demand trend that, in conjunction with Fear Trade buying, may move the tonnage of physical metals\u2019 sales substantially higher.
\n\"palladium
\nSilver benefits from this dynamic, which when added to its primary driver \u2013 industrial demand \u2013 makes for an even more compelling investment and wealth-protection magnet.<\/p>\n

And finally, there are platinum and palladium. With the lion\u2019s share of both metals\u2019 uses devoted to automotive and truck catalytic convertors, they should, by any definition, be first and foremost looked upon as industrial metals. However, in both Asia and the West, these two \u201csilvery\u201d metals are increasingly being purchased in ingot and bullion round forms for their investment value, and in the jewelry trade for their beauty and durability.<\/p>\n

About the possibilities inherent with Apple\u2019s new product, Stu Thomson of Graceland Updates had this to say:<\/strong><\/p>\n

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With a market cap of nearly $1 trillion, and the complete instability of most global fiat, the move into gold watches with weight becomes a currency hedge for the company, in addition to being a revenue generator\u2026 The Apple watch can unlock your car and tell you how charged your electric car is, and I would argue this is the first \u201cparabolic ramp up\u201d of the love trade. It may also reintroduce the gold love to the West.<\/em><\/p>\n

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Gold iWatch Is One of Many \u201cStraws in the Wind\u201d<\/strong><\/p>\n


\n<\/strong>As an investor who is bullish on the precious metals, you want to see continued new uses being found for them. And that is exactly what is taking place in all four of today\u2019s precious metals markets \u2013 gold, silver, platinum and palladium.<\/p>\n

Long before Apple made its gold watch announcement, precious metals were helping people \u201ctell time.\u201d They gave \u2013 and continue to give \u2013 those who possess them the ability of not only protecting their wealth, but often times their families\u2019 lives during times of approaching financial storm and political strife.\u00a0 The clock is ticking.<\/p>\n

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\"DavidTheMorganReport.com<\/em> and a regular contributor to <\/em>MoneyMetals.com<\/em><\/a>. For the last 15 years, he\u2019s investigated precious metals mines and exploration sites all over Argentina, Chile, Mexico, China, Canada, and the U.S. and shared his findings and investment wisdom with readers, radio listeners, and audiences at North American investment conferences.<\/em><\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By David Smith An interesting message hit the news wires around the world in late February. Among many others,\u00a0Mining.com\u00a0announced breathlessly, \u201cApple buying a third of world\u2019s gold to meet demand for iWatch.\u201d The text continued with: Technology giant Apple may soon buy up one third of the world\u2019s gold in order to meet the demands […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-69510","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/69510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=69510"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/69510\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=69510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=69510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=69510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}