Real World Free Market Capitalism – Gold / Silver Update

Under normal circumstances we would never publish something of this nature. However, we believe this paints a picture for all to see just how out of balance the COMEX, paper price scheme, has become with the real world supply / demand dynamic of free market capitalism. Free market will always win, it’s the LAW of economics, not a suggestion, theory or thought but a LAW. This is exactly what you are seeing and this information codifies it for all to see.

We are seeing this same dynamic play out around the world. There is no inventory and there is real world demand that continues to grow. The “decoupling” will continue until there is a total breakaway one from the other – COMEX nonsense will no longer dictate what is happening on the ground or in the ground for that matter.

As Bullion Star reported earlier today….

Bullion Inventory & Availability

We continue to have stocks for most products despite the overwhelming demand we have seen lately as our strategy has been to hold much higher inventory levels than our industry peers.

We have prepared for the calamities on the financial markets and in the monetary system for many years and have planned and structured our company accordingly. At the first signs of the imminent shortages, we were decisive and aggressive in increasing our stock levels for precious metals.

We only sell metals we have in stock or metals which are purchased by us, produced by the supplier and on route to us. You can view the availability status on our website. All metals indicated as “In Stock” are available for immediate release/delivery.

Pricing

It’s extremely challenging for us to operate under the current circumstances where the price for physical precious metals has decoupled from the paper LBMA spot and COMEX futures market price. As we have written about several times over the years, paper metals look to become increasingly worthless while only real physical precious metals will hold its proper value.

Price discovery based on paper markets, flawed to begin with, is experiencing cracks in the system – spreads on the paper spot market (as quoted by bullion banks) have been as high as USD 80 per oz the last few days. It’s therefore difficult to ascertain the equilibrium physical market bid/ask price. The premiums and buy/sell spreads are therefore high.

Compared to many of our peers globally, we have still have a significant amount of bullion in stock available for purchase. Metals are now going into hiding. The opportunity to acquire any precious metals with fiat currency is quickly closing amidst extreme demand coupled with an extreme supply shortage happening at the same time.

For customers looking to sell their metals to us, we are currently paying the spot price of silver plus up to 25% for silver coins like Silver Eagles if you sell to us. We are paying up to the spot price of gold + 2% for major gold coins like Gold Maples. We are also paying above the spot price for most gold bars and silver bars. See our sell back prices here.