for The Q Wealth Report
Shortly after Friday’s announcement that the US Mint had stopped selling bullion coins, an Irish Sunday newspaper has broken the story of a major retail gold shortage worldwide. This bears out my own experiences of the last few days, when a few emails to my regular banking contacts in Europe seeking to buy physical gold bullion on behalf of clients were met with responses like “it will be very expensive” or “our compliance department will go ballistic.”
According to the story, wholesalers reported that government mints and refiners, the primary suppliers of the metals, had stopped offering new supplies, suggesting that the restrictions on the market come from Central Bankers working in unison, rather than simply the US Mint as we believed at first.
It seems investors are running scared of gold ETFs as reported on my personal blog overnight, and with good reason. The only real gold is physical gold, and it seems now we cannot buy it at spot price or anywhere near. We are now seeing TWO Market prices for gold: a theoretical spot price set by the bankers and the ETFs, and another, premium price for real gold you can physically hold in your hands.
‘‘It’s absolutely unprecedented,” said Irish gold dealer O’Byrne, reported in the Sunday Business Post article. He went on to say that shortages were likely to drive up the costs of gold and silver in the secondary market. ‘‘This did not happen even in the 1930s and the 1970s, and will result in markedly higher prices in the coming months.”
Mark my words – things will get a lot worse yet. If you can still buy physical gold now in your local bank or casa de cambio, run there first thing in the morning!