Three Swiss gold refineries suspend production due to virus threat

Reuters/Peter Hobson

“Three of the world’s largest gold refineries said on Monday they had suspended production in Switzerland for at least a week after local authorities ordered the closure of non-essential industry to curtail the spread of the coronavirus.”

USAGOLD note 1:  We first warned that the coronavirus could translate to a supply problem in the gold market in last month’s newsletter.  “At the moment,” we wrote, “the supply lines in the precious metals business are still functioning smoothly. There could come a time, though, when they are not – a possibility, by the way, that has received scant attention in the context of the coronavirus contagion”.

USAGOLD note 2: The lead article in that edition of our monthly newsletter, by the way, titled “Hedging the decline and fall of a currency – The baseline case for gold hasn’t changed much in 1700 years” carries special relevance in light of recent events. It reviews Jack Whyte’s latest novel “The Burning Stone” – a prequel to his series on the Arthurian legend.  Whyte skillfully tells the story of Rome’s silver denarius debasement and how one Roman patrician guarded, and in fact enhanced, his wealth through ownership of gold coins.

Repost from 3-24-2020

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