The past week we have seen an enormous amount of news about refineries, mines, transportation and mints all being impacted by the Chinese bat-stew flu coronavirus. If the mines can’t dig gold and silver out of the ground, the refineries can’t refine the gold, normal lines of transportation are broken and whatever was on the shelf has been minted and sold how can something – anything – begin selling at a lower cost? Have we not heard stories of price gouging on hand sanitizer and face mask? Have we not seen higher prices on these items? That’s how it works – higher demand, less product equals higher price – basic economics 101.
The precious metals were smashed again beginning Sunday night soon after the “markets” opened. This is not new we have seen this action for years and years. Another day another crime *yawn*. What we haven’t seen is the underlying product gone from the planet. It’s not there is a little coming online, there is nothing coming online.
This was reported by Mark O’Byrne, Gold Core, earlier today before we began the interview –
◆ Epic gold shortage prompts those concerned about systemic collapse including preppers, bankers and high net worth alike to try and acquire gold bullion which has become ‘unobtanium’.
◆ Credit Suisse Group AG, which has minted its own bars since 1856, told clients this week “not to bother asking” for gold bars.
◆ Dealers are sold out or closed for the duration and in London, bankers are chartering private jets and trying to finagle military cargo planes to get their bullion to New York exchanges, according to the WSJ.
If you hold gold and / or silver and have an understanding of the reasons for holding these items would you sell your holdings – any amount of your holdings – back into the market for a 25% premium to the current spot of gold and / or silver? For most people that’s going to be a very hard NO. A few people, God help them, need the cash flow. Those few people are going to do okay with the current spot of gold, but they are going to get crushed at the current spot for silver.
I sat down with Chris Marcus, author of The Big Silver Short and precious metals analyst, to discuss what is going on right now, today, with these markets. We bring a little humor to the table, while keeping you up to the minute with the action in the “markets”.
Related reading that supports this whole idea.
No Gold For You! None For You! None For You! No Silver Either!
Alasdair Macleod: Gold / Silver Supply Chain Will Be Broken For Months
Missed Payments In Production Chains Will Collapse System: Alasdair Macleod
