Goldtent should be monitoring contango/backwardation for the reason laid out by Egon.

If this scenario is forthcoming it should appear in C/B.

Thanks Patrick.

STOP PRESS
PRESSURE IN PHYSICAL GOLD MARKET & END OF PAPER MARKET IN GOLD AND SILVER

The Swiss refiners in the Canton of Ticino closing due to CV is having a major effect on the availability of gold. We must remember that 70% of all gold bars in the world are produced in Switzerland and that the 3 biggest refiners are in Ticino where the local government has ordered non-essential factories to close.

Since last Friday when the Swiss refiners closed, gold is up $100 and demand is major and frantic. Bid – offer spreads have increased substantially and premiums on gold and silver are very high. Gold in bigger quantities is now very difficult to obtain but not impossible. There is a major silver shortage and virtually impossible to find. Smaller quantities of silver fetch a 100% markup on spot.

With very little physical available and demand substantial, there is soon likely to be pressure on the paper market. Investors who have bought gold and silver futures will be concerned of the contracts being honoured and ask for delivery.

What we are seeing now is probably the beginning of the end of the gold and silver paper market.

Egon von Greyerz
Founder and Managing Partner
Matterhorn Asset Management

ANF on Hydra: ” But no sooner had gold futures trading stopped after the advent of
permanent backwardation than gold was no longer to be had in exchange for
U.S. Treasury debt. The entire outstanding debt of the U.S. was worth not one
ounce of gold. Not one gram of it.”

https://goldtadise.com/wp-content/uploads/2019/06/AEFWhoSaidDragon.pdf

Weekend Reading:

Gold Cotango vs Backwardation – Prof Antal Fekete 2008