For the past fifteen plus years,
physical gold supplies have been like Lazarus: they keep rising from the Dead.
Not exact matches
This means that funds flowing into
gold will be forced into the one and only
physical gold market that already exhibits tight, inflexible
supply.
Being finite and in short
supply, incremental demand for
physical gold would result in immediate and sustained price gains, creating a positive feedback loop in the market place.
On the
supply front, mine production has contributed to more than 60 percent of the global
physical gold available in the markets, and the rest of the
supply has come from recycled
gold.
In fact, the pricing mechanisms that rule futures contracts, which in turn, establish real - world asset pricing, can be entirely disconnected from
physical supply and demand determinants, especially in the paper
gold and paper silver worlds of London and New York.
Not even a small fraction of this incremental demand would be available in the
physical gold market at this time, given that it already operates at a
supply / demand equilibrium.
The sudden rise in settlement of Comex
gold and silver futures contracts through the formerly obscure off - exchange mechanism of «exchange for
physicals» is likely just increasing the
supply of imaginary metal, the TF Metals Report's Craig Hemke writes today for Sprott Money.
This creates the risk that the counterparty, such as a fund manager, will not be able to meet their obligations to
supply the
physical gold.
Such a hypothesis, in our opinion, does much to explain the incongruity of a declining
gold price while fundamentals for paper currency, and the US dollar in particular, obviously deteriorate; while demand for
physical gold has exceeded new mine
supply for several years running; and while above - ground 400 - ounce.999
gold bars located in London, New York, and other financial capitals (in cohabitation with speculative trading activity in paper markets) have steadily dwindled and disappeared into Asian financial centers reformulated as.9999 kilo bars.
For how much longer can the reality of an acknowledged shortage for
physical gold and silver go on in the face of an unprecedented and growing
supply of worthless fiat, where the former have a historic intrinsic value and the latter has no value, whatsoever, except in the mindless minds of the users?
It explains how the
supply of paper
gold can depress the price of
physical gold despite the fact that synthetic sellers do not possess any
gold to sell.
Synthetic
gold traders appear to share three things in common: no
gold, little or nothing in the way of margin requirements, and no knowledge of or interest in the fundamentals of
physical supply and demand.
Each sovereign sale has produced needed
physical gold at times of
supply — demand imbalance, many of which have been critical.
This sterilizes the investor's funds, and prevents them from being used to buy
physical precious metals, which would interfere with the price rigging crime by increasing
physical demand for and the price of
gold, given its consistently tight
supplies.
They start with the following background topics: how
gold markets operate;
physical gold demand and
supply; and,
gold mine economics.
Currencies were readily interchangeable,
gold anchored exchange rates and the
physical supply of
gold stabilized the money
supply over the long term.
The public IMO sees this coming hence the run on
supplies of
physical gold and silver even though exchange prices fail to reflect this demand.
When you own
physical gold the only concern you have is the actual price of the metal based on global
supply and demand.
There are many ETFs that are nothing more than funds that purchase, store, and even insure
physical supplies of
gold.
One of the benefits of investing in
gold through an ETF or mutual fund is that you don't have to worry about the storage and maintenance of the
physical supply of
gold yourself.
While
supplies last, fans will also be able to purchase the Legacy Edition * of the game which includes a
physical version of the game, a Metroid II: Return of Samus download code for Nintendo 3DS, an old - style SteelBook ®, the Samus Archive sound selection CD featuring 25 tracks from across the Metroid series, a
gold «S» Mark pin, a Morph Ball 3D keyring and a 40 - page artbook.
With limited known
supply, Bitcoin is even giving a stiff competition to
physical gold which was considered as the ultimate benchmark of financial security till now.