This is the physical squeeze we have been waiting for. There is still just as much gold in the world - the question is the price at which it becomes available. Silver is far more vulnerable than gold - the refiners do not have enough capacity to meet COMEX demand and are 100% refining gold. This means silver will have to wait to be refined and physical silver available for delivery will run out before gold does. The only way to stop it will be a gold revaluation but to what price? $5,000?
I agree but HOW the revaluation comes about will determine the price. If other central banks revalue, they will be cautious and it will be to market. BUT if the Fed revalues first, then they might go higher but there will be instant demand for an audit. So do they have to buy back the 8,000 tonnes first? Ultimately, the price will be whatever the price is at which China is happy holding US debt, instead of buying gold... which is probably more than $20k
Exchange for physical. I know this piece was an advanced discussion. I'm not getting paid for any of this and already spend a chunk of time on it. I'd suggest to keep reading as I cover the basics at times.
I was thinking last week it might be the FED and/or the US gov that wants the gold back on US soil.
And just two days ago a guest at some YT channel i watch frequently, was saying that same thing.
Listening to the new administration's occasional comments this looks to have some merit. And it would be wise too.
What do you think?
That may be happening, but there is no evidence I see to back that up.
Silver is down today (Friday Feb 7 ) but gold is about flat. Something is certainly happening under the covers.
This is the physical squeeze we have been waiting for. There is still just as much gold in the world - the question is the price at which it becomes available. Silver is far more vulnerable than gold - the refiners do not have enough capacity to meet COMEX demand and are 100% refining gold. This means silver will have to wait to be refined and physical silver available for delivery will run out before gold does. The only way to stop it will be a gold revaluation but to what price? $5,000?
I think a step change revaluation would be at a much higher price than $5k.
I agree but HOW the revaluation comes about will determine the price. If other central banks revalue, they will be cautious and it will be to market. BUT if the Fed revalues first, then they might go higher but there will be instant demand for an audit. So do they have to buy back the 8,000 tonnes first? Ultimately, the price will be whatever the price is at which China is happy holding US debt, instead of buying gold... which is probably more than $20k
MOAR
It would be nice to of mentioned WTF an EFP spread actually stands for/is/means. No clue.
Exchange for physical. I know this piece was an advanced discussion. I'm not getting paid for any of this and already spend a chunk of time on it. I'd suggest to keep reading as I cover the basics at times.