Loading ...Gold Demand
Demand for physical gold has been outstripping supply for many days now. Every time the dealers get anything in, it’s sold instantly because of the enormous number of people that have ‘pre-ordered’ and locked in the price from a few days ago. Mine supply may become limited due to the virus, with some mines closing down, and the transport/delivery network completely broken, plus refiners being closed. It has to be a perfect storm to take gold beyond $2000 very quickly.
Maybe physical gold goes to $2500 or more, but paper gold stays hundreds of Dollars less. Then what ?
If there would be a real shortage , they would pay at least 20-30% premium if they buy back your silver, this is not the case, as they only pay the spot silver price if you sell. Apparently shortage is mainly at retail level with silver coins and 1 kg bars, not with the silver 1000 ounces bar at LBMA. The price they ask are insane at 50% over spot, maybe some retail clients are so crazy to pay that, but I prefer to buy the Sprott PSLV fund at a discount to spot.
https://www.goldcore.com/our-products/silver-bars/buy-1000-oz-silver-bars-for-secure-storage-lowest-silver-price
Hi Alex. What I mean by ‘shortage’ is that it’s not been possible to get buy 1oz gold coins and get them delivered (despite a postal service which is operating as normal). It hasn’t been possible here for almost a week now. I tried phoning 5 bullion shops/dealers last week. None had any coins in stock, and they all said they had a very long list of orders that they couldn’t fulfil. The guy I spoke to at Bullion By Post said it was completely ‘unprecedented’ in the firms history. To me this is significant, and indicative of something unusual.
I agree, the same is happening in Germany, see https://www.gold.de/, but in 2008-2009 it happened too and was only temporary.