BNN Bloomberg/Justina Vasquez/7-2-2020
“The chaos that engulfed the gold market in March as the global pandemic choked off physical trading routes is rippling through other precious metals, resulting in price dislocations and a surge in exchange inventories for silver and platinum.”
USAGOLD note: From what we can gather, this report indicates that another delivery squeeze might be developing on the commodities exchange – this time involving silver and platinum. The reference to a surge in inventories needs to be put into context. The build-up, if March is the template, has more to do with preparing for heavy delivery demand than it does a sudden surge of metal hitting the market – the opposite of what the explanation above infers. The accompanying chart at the link above, in our view, is far more telling than the text underneath it.
