Gold and Silver Prices Fall Despite Bullion Shortages and Rising Premiums

Gold in USD – 15 Years (including the brief Lehman sell off in October 2008)

◆ Gold and particularly silver prices have fallen sharply in recent days due to massive concerted selling in the futures market which is being attributed to margin call selling.

◆ Gold and silver prices are down by 4.5% and 24% respectively in March despite unprecedented demand for gold and silver bullion globally which is leading to a shortage of gold and silver coins and bars, delivery issues and to sharply rising premiums on coins and bars.

◆ The real world forces of limited physical supply of and significant global demand for precious metals versus the selling of electronic futures is resulting in a growing divergence between the spot price and the actual price that coins and bars are sold at. Hence, premiums on gold and particularly silver coins and bars are rising significantly.

◆ Depending on whether it is gold or silver, what type of coin or bar and indeed the weight, there are varying premiums and in recent days due to massive demand and limited finite supply, premiums have increased significantly across the board as the physical market disconnects from the make believe electronic and paper gold and silver markets

◆ Most brokers have been cleaned out of supplies and are desperately trying to source in the secondary market and from clients. With the result that premiums on the sell side are also rising significantly as brokers are willing to pay higher premiums to buy back in stock.

◆ Most refineries and government mints have also seen a massive depletion of their coin and bar inventories and are now working hard to mint and fabricate the next batch or runs of coins and bars.

◆ The U.S. Mint has announced that they effectively sold out of Silver Eagles and their silver bullion coins inventory and are going to have to ship out what can be made in the next fabricating and minting runs. Hence why there are massive delays in delivering and some dealers have suspended deliveries and sales.

◆ We have seen silver bullion coins with premiums as high as 50% to 100% over spot with spot prices at $13/oz and silver bullion coins being sold for over $22/oz.

◆ As an example of this, many of the wholesalers have been cleaned out of all inventories of the popular gold bullion coins. There are limited supplies of certain coins and premiums have gone up very significantly. An example of this is wholesale premiums on Gold Eagles and Gold Buffalo’s have moved up to 4% and Krugerrand’s are at 3% with major dealers.

◆ Due to our extensive network of relationships with government mints and refineries, we are still able to source most gold bullion coins (1 oz) and indeed gold bars in 1 oz, 1 kilo and 400 oz formats. However, demand remains very high and this could change in the coming days.

Watch interview here


NEWS and COMMENTARY

Gold reverses course to fall 1% as flight for cash resumes

New York Fed pledges to Daily Offer $1 TRILLION in overnight repo loans this week

Stock futures plummet, triggering a trading halt amid uncertainty at government reaction to virus outbreak

ECB says it has more firepower to fight crisis, European Stability Mechanism has a 410 billion euro capacity

Italian 10-year bond yields jump over 60 basis points, above 3% w/ spreads spiking spiked to 315 bps to German 10-year

Gold is setting records dating back over 5,000 years — against silver

Violent price divergences between physical and metal futures prices

GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)

17-Mar-20 1472.35 1536.20, 1212.04 1275.66 & 1331.00 1400.40
16-Mar-20 1504.65 1487.70, 1223.28 1210.54 & 1346.36 1338.93
13-Mar-20 1588.15 1562.80, 1258.61 1248.83 & 1422.66 1407.30
12-Mar-20 1636.65 1570.70, 1284.28 1246.35 & 1457.11 1410.96
11-Mar-20 1662.50 1653.75, 1284.78 1279.01 & 1468.65 1462.25
10-Mar-20 1657.40 1655.70, 1269.40 1273.23 & 1460.00 1455.86
09-Mar-20 1676.60 1672.50, 1280.75 1272.94 & 1469.04 1462.10
06-Mar-20 1687.00 1683.65, 1296.80 1290.85 & 1490.13 1484.31
05-Mar-20 1647.45 1659.60, 1274.47 1284.70 & 1474.63 1482.69
04-Mar-20 1644.80 1641.85, 1286.73 1281.63 & 1475.06 1477.83



Receive Our Award Winning Market Updates In Your Inbox – Sign Up Here



Mark O'Byrne

Also on news-goldcore-com

Videos

Gold Mining Operation Supply Issues Points to a Sustained Bull Market for Gold

What could send gold to $5000 per ounce?

Is it Good to Buy Gold Now?

Blog posts

Gold as a Currency- Interactive Gold Charts

Gold has a long history as a currency and as part of the monetary system. The use of gold as a currency dates back to 600 BC in what is present-day Turkey. Coins were first made of electrum – which is an alloy made up of gold and silver, with trace amounts of other metals. […]

READ MORE

Gold Mining Operation Supply Issues Points to a Sustained Bull Market for Gold

David Garofalo, the Ex Goldcorp CEO and the man that presided over its $32bn merger with Newmont mining is the guest on GoldCore TV this week. He discuss how the growing supply and demand imbalances in the market point to the potential for a prolonged bull market for gold. Watch the Video to Learn More Make […]

READ MORE

Is Gold Still a Safe Haven Asset?

Another strike against Bitcoin this week. We discuss bitcoin often because it has been touted as an alternative to gold in many circles. Many of these claims are unsubstantiated and some are outright false. Also, as long-term physical metals investors, we care enough to tackle these falsehoods head on. Commercials are circulating from crypto companies […]

READ MORE

Featured

Silver – 7 Reasons it is Still Set to Soar

READ MORE

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Gold Mining Operation Supply Issues Points to a Sustained Bull Market for Gold

What could send gold to $5000 per ounce?

Is it Good to Buy Gold Now?

Blog posts

Gold as a Currency- Interactive Gold Charts

Gold has a long history as a currency and as part of the monetary system. The use of gold as a currency dates back to 600 BC in what is present-day Turkey. Coins were first made of electrum – which is an alloy made up of gold and silver, with trace amounts of other metals. […]

READ MORE

Gold Mining Operation Supply Issues Points to a Sustained Bull Market for Gold

David Garofalo, the Ex Goldcorp CEO and the man that presided over its $32bn merger with Newmont mining is the guest on GoldCore TV this week. He discuss how the growing supply and demand imbalances in the market point to the potential for a prolonged bull market for gold. Watch the Video to Learn More Make […]

READ MORE

Is Gold Still a Safe Haven Asset?

Another strike against Bitcoin this week. We discuss bitcoin often because it has been touted as an alternative to gold in many circles. Many of these claims are unsubstantiated and some are outright false. Also, as long-term physical metals investors, we care enough to tackle these falsehoods head on. Commercials are circulating from crypto companies […]

READ MORE

Featured

Silver – 7 Reasons it is Still Set to Soar

READ MORE

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE