Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench

Gold And Silver Bullion Coin And Bar Shortages Continue

IMG Auteur
Published : May 03rd, 2013
571 words - Reading time : 1 - 2 minutes
( 1 vote, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...

Today’s AM fix was USD 1,476.50, EUR 1,124.95 and GBP 949.34 per ounce.  
Yesterday’s AM fix was USD 1,456.00, EUR 1,106.22 and GBP 935.07 per ounce. 


Cross Currency Table – (Bloomberg)

Gold rose $8.10 or 0.56% yesterday to $1,466.80/oz and silver finished + 0.68%.

Physical demand for coins and bars internationally continues and is the strongest since the immediate aftermath of the Lehman Brothers collapse on September 15, 2008, and the consequent global financial crisis.

Government mints, refiners and bullion dealers internationally are reporting demand as high as in the aftermath of the Lehman crisis. 

Brokerages are seeing nearly all buyers and little or no sellers which is making for a tight market with rising premiums. At GoldCore, sellers have been people liquidating unallocated positions and opting for taking physical possession or the increased safety of allocated accounts. 

Higher prices will be needed by bullion owners in order to incentivise them to sell – prices that will likely be significantly higher.    

Most physical owners are buying for the long term and will not sell in the coming months even when prices recover. If prices rise to back above $1,600/oz, some physical gold might come back into the market and alleviate the supply issues. 


Gold in USD, 1 Year – (Bloomberg)

However, we believe that this may be a long term structural supply demand issue in what is a very small physical bullion market, that will only be alleviated by much higher prices and indeed higher premiums.

It is difficult to generalise regarding premiums as there are so many products and so many regions but in general terms, prices on nearly all small coins and bars are rising and on average there have been 1% to 2% rises in the premiums on popular one ounce gold coins and bars. This means that one ounce coins and bars can cost some $14 to $28 more than they did prior to the price falls. 

The percentage increase in premiums in the silver market is even higher and there are more delays and unavailability of silver coins and bars with popular formats such as Eagles and Maples now almost difficult to secure. We acquired a large number of Silver Eagle Monster Boxes yesterday which we expect to have sold by the close today.

Today, return of capital is of far more importance than return on capital.


Gold in Euros, 1 Year – (Bloomberg)

Gold and silver bullion coins and bars are important in this regard as they are not about making a capital gain per se rather they are about wealth preservation.

Given we are in an era of competitive currency devaluations, there is also the real possibility of making significant capital gains.

Of fundamental importance is the fact that gold and silver coins are not 'investments' rather they are a safe form of money and an important form of financial insurance that everybody should own.

With the risk of a global depression remaining very real, people need to own the financial insurance that bullion coins represent. Bullion coins are like health insurance in that you should own them but hope you never have to use them.

The biggest benefit of owning gold coins either in your personal possession or allocated in secure vaults internationally is that they will always retain a value unlike paper assets and currencies which have considerable counter party risk today - as was seen in the deposit confiscation in Cyprus.

Companies Mentionned : Bullion | Capital Gold | I-min. | Silver |
Data and Statistics for these countries : Cyprus | All
Gold and Silver Prices for these countries : Cyprus | All
<< Previous article
Rate : Average note :5 (1 vote)
>> Next article
Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth.
WebsiteSubscribe to his services
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
The U.S. Continues To Import Rec...
03:57Gypsy-1
Steve, you seem to have a grasp on Silver Reality here. I'm impressed. With over 100 claims on each ounce of GOLD being sold in the Paper Market,...
Gold Surges Another 7% This Week...
13 FebS W.
Buy the dip in gold?? Better to buy the selloff in Oil.
Gold Surges Another 7% This Week...
12 Febovertheedge
"Buyers should be getting into position to buy on the next dip." Gold is up something like 16% so far this year. Should'a bought when it wa...
Here We Go Again: Banks Are Impl...
12 Febsonora69
What is going to happen NEXT Monday? The Shanghai markets are closed all this week for the Lunar New Year. Monday morning ( or Sunday night U.S. t...
First Report since April, 2014
05 FebAndy_K1
Jason, One of your articles written way back is one of the reasons I started paying attention to silver and shortly thereafter started to ...
Something has Changed in Gold St...
06 Febneville
No nothing strange has happened in GOLD stocks....absolutely nothing.....The fact of the matter is that you byrne have been playing the man and...
The Revisionist Theory and Histo...
05 Febovertheedge
"The key is in the hand of the U.S. government. It is the same key that was used to lockthe U.S. Mint to silver in 1873, and to gold sixty years la...
First Report since April, 2014
05 FebS W.1
Here I was just 2 days ago thinking whatever happened to that evangelical silver guy. Low and behold up he springs, like some spirit from the g...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Lara Expl.(Cu-Zn-Au)LRA.V
Revised Resource Estimate Report Filed for Maravaia Copper Gold Deposit
CA$ 0.34+1.49%Trend Power :
Corporate news
Black HillsBKH
Black Hills reports 4Q loss
US$ 51.64-2.75%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
Gasoline Inventories Rose Last Week despite Fall in Production
US$ 21.69+2.07%Trend Power :
Corporate news
United States Steel(Fe-Sn)X
U.S. Steel (X) States Ratification of Labor Agreements
US$ 7.40+8.35%Trend Power :
Corporate news
Black HillsBKH
4:34 pm Black Hills Corp beats by $0.04, misses on revs; guides FY16 EPS below consensus
US$ 51.64-2.75%Trend Power :
Corporate news
Black HillsBKH
Black Hills Corp. Reports 2015 Fourth Quarter and Full Year Results
US$ 51.64-2.75%Trend Power :
Corporate news
Transcanada PipelinesTRP.TO
TransCanada to Sign Substantial Agreement to Benefit Québec Economy
CA$ 48.65+0.16%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
4Q15 Crude Oil Prices: Fallout for the Energy Sector and SPY
US$ 21.69+2.07%Trend Power :
Corporate news
Comments closed