Gold product unavailable to dealers

CaptHenway

Be advised that Friday afternoon we were unable to buy any one ounce gold product from any of our usual sources. None.

The market for it is as tight as the market for silver product got a few weeks ago. Expect to pay outrageous premiums for live product.

TD

roadrunner

Good to know. Seems the physical markets are freezing up just as the credit/fiat markets have with apparently no one trusting anyone else.

Hey, but there's always plenty of GLD and SLV to load up on if you don't mind a little paper with your gold plus the accompanying multiplel layers of intermediaries between you and your "paper."

Your "investment" or should I say speculation, is as safe as the financial stability and trustworthiness of the aforementioned intermediaries (JPM, Barclays, $8 per trade internet brokers, etc.).

Have fun with your trades.

roadrunner

trozau

RCM says they have the gold to supply the demand: link to article

roadrunner

What Canadian gold miner(s) supplies the RCM?

Of course I wouldn't expect the RCM to come out with a statement that they couldn't meet demand like the USMint or would be cutting off supplies in the near future. When they finally have nothing left is when they will make their announcement of suspending sales. With the price of gold jammed downwards from $950-1000 I'm sure some of the larger Canadian miners are stockpiling a larger % of their inventory rather than presenting it to the market at distressed levels. Goldcorp is one such company that has done that. If market momentum dictates its time to hammer the gold miners I would expect those companies with solid balance sheets to stockpile inventory for a time.

roadrunner

mrearlygold

I purchased several 100 oz silver bars but delivery is deferred. That's the way the cookie crumbles.

dac076

Seems the physical markets are freezing up just as the credit/fiat markets have with apparently no one trusting anyone else.

I'm not sure I understand the analogy. I agree, the credit markets are freezing because of trust issues. Lenders are hesitant to loan $ due to questionable creditworthiness of borrowers, both personal and institutional. Lenders have plenty of cash, but they're sitting on it. But why would a lack of trust be an issue in gold sales? I think holders are just underwater due to the price drop, and would rather hold it than take a loss.

roadrunner

The lack of trust comes from someone being able to pay you off in real gold. You send out your check and you hope gold comes back. You are at the mercy of the broker, refiner, miner, etc. Who's to say they'll be in business the next day? Margin rates have been raised on gold comex contracts and that will probably continue as gold rises in price. How much do you trust in TPTB that you will be paid off in 100oz of gold on your futures contract should you decide to opt for physical delivery? If there are more contracts than actual metal who gets their physical first and who gets bought out in devaluated currency? There are many levels of trust in the metal's markets. GLD and SLV operate on trust at many levels as well.

I sense far less trust in the metals today than in 2007. Bottom line, can you trust on getting actual delivery? What if your broker, banker, dealer, refiner, custodian, etc goes down while you have money out there? How many people will be in line ahead of you?

The other trust issue is what is the real price of physical metal, not the price of paper contracts or GLD/SLV? The split between them is the distrust pricing quotient in the market. How can you have a trustworthy market when you have multiple ways of valuing a simple commodity like gold or silver??

roadrunner

57loaded

any more rumors floating about cash settlements for comex gold?

Overdate

On eBay, common bullion one-ounce Gold Eagles and Buffalos are fetching around $1,000 each.

Any date Silver Eagle rolls of 20 are going for $375 to $400.

Should be an interesting week coming up!