10 Signs The Paper Gold Crash Unleashed An Unprecedented Demand For Physical Gold And Silver

Tyler Durden's picture

Submitted by Michael Snyder of The Economic Collapse blog,

The crash of the price of paper gold on Monday has unleashed an unprecedented global frenzy to buy physical gold and silver.  All over the planet, people are recognizing that this is a unique opportunity to be able to acquire large amounts of gold and silver at a bargain price.  So precious metals dealers now find themselves being overwhelmed with orders in the United States, in Canada, in Europe and over in Asia. 

Will this massive run on physical gold and silver soon lead to widespread shortages of those metals?  Instead of frightening people away from gold and silver, the takedown of paper gold seems to have had just the opposite effect.  People just can't seem to get enough physical gold and silver right now.  Those that wish that they had gotten into gold when it was less than $1400 an ounce are able to do so now, and it is absolutely insane that silver is sitting at about $23 an ounce.  If the big banks continue to play games with the price of gold, we are going to see existing supplies of physical gold and silver dry up very quickly. 

And once reports of physical shortages of gold and silver become widespread, it is going to absolutely rock the financial world.  But this is what happens when you manipulate free markets - it often has unintended consequences far beyond anything that you ever imagined.

The following are 10 signs that the takedown of paper gold has unleashed an unprecedented global run on physical gold and silver...

#1 According to Zero Hedge, the U.S. Mint set a new all-time record for the number of gold ounces sold on Wednesday...

According to today's data from the US Mint, a record 63,500 ounces, or a whopping 2 tons, of gold were reported sold on April 17th alone, bringing the total sales for the month to a whopping 147,000 ounces or more than the previous two months combined with just half of the month gone.

#2 Precious metals dealers all over the United States are having a really hard time keeping up with demand right now.  According to Chris Martenson, many are warning customers to expect waiting times of five to six weeks at this point...

In the U.S., all of the dealers I talk to are reporting huge demand and brisk buying. Silver in any form is quite hard to come by unless you want to pay premiums of 20%+ per ounce above spot price. Delivery times are 5 to 6 weeks out now that's an unusual situation.  If this recent slam was designed to scare people away from gold, it did not have that desired outcome; in fact, just the opposite.

#3 Individual dealers all over the country are confirming that we are seeing a voracious appetite for precious metals at the moment.  For example, the following is what a spokesperson for JM Bullion had to say...

We still have certain things in stock, like 10 oz bars, while others, like Silver Eagles, are a bit of revolving inventory.


The shipments are going out as soon as inventory comes in.


Our main challenge right now is actually getting the silver into the boxes and shipped out – we have been experiencing astounding volume.

This appears to be a widespread phenomenon.  Just check out what other dealers are reporting...

“There has been a marked increase in demand since the plunge,” said Mark O’Byrne, executive director at Dublin-based investment and bullion specialist GoldCore, referring to the drop in gold prices seen Friday and Monday. Gold futures lost more than $200 an ounce, or over 13%, on those two days. They were at $1,392 an ounce, moving higher ahead of the close on Thursday.


GoldCore has seen more buying than selling on Wednesday and Thursday, with buy orders “lumpier and from high net worth clients, and with most of the selling in small orders of less than 50 ounces, said O’Byrne.


On Wednesday, David Beahm, executive vice president at Blanchard & Co., said his precious-metals investment firm has seen “2008-like demand” for gold since Monday.

#4 Large international banks are also experiencing tremendous demand for physical gold and silver by customers right now.  The following is what Keith Barron told King World News about what he is hearing...

At the Bank of Nova Scotia in Toronto the gold window has been absolutely swamped. I have confirmed there were people lined up in droves recently for multiple-hours at a time to buy gold and silver bars and coins....


I then confirmed with UBS today in Zurich, Switzerland, that they are experiencing exactly the same thing. They told me people are waiting in long lines for bullion related bars and coins. The physical market is incredibly tight, and there is a huge buying opportunity right here.


The damage in gold will not be long-term because physical supply is already drying up. Asian countries have been aggressively buying gold. This really is an unprecedented opportunity for investors. This takedown in the metals has created incredible demand for both gold and silver, and anyone who wants to unload dollars or euros and put them into gold because they don’t trust the currency, now is the time to do it.

#5 The demand for physical gold and silver is heating up over in Europe as well.  For example, the following is from an emergency message posted on the website of a precious metals dealer in the UK...

Due to the unprecedented demand triggered by the recent fall in the Gold Price we are currently not able to guarantee Next Day Delivery of orders.


We anticipate that all orders will be delivered within 7 days of receipt by us.

Whilst we appreciate that these delays are frustrating for our customers we would like to stress that all accepted orders are guaranteed at the order price and will be dispatched as soon as possible.


It is necessary for all of our staff to be utilised in fulfilling orders and we ask for your cooperation by not calling us to query delivery times. If you do need to contact us, please do so by e-mail and we will endeavour to respond within 48hrs.

#6 On the other side of the globe, demand for precious metals is skyrocketing as well.  According to Bloomberg, people are "running through the gate" to get gold in Australia...

Gold sales from Australia’s Perth Mint, which refines nearly all of the nation’s bullion, surged after prices plunged, adding to signs that the metal’s slump to a two-year low is spurring increased demand.


“The volume of business that we’re putting through is way in excess of double what we did last week,” Treasurer Nigel Moffatt said by phone, without giving precise figures.


“There’s been people running through the gate.”

#7 Reuters is reporting that customers are waiting for up to three hours to buy gold in Japan...

A week ago, as the yen-denominated price neared a new peak, jewelry stores and gold merchants across Japan saw long lines of mostly older Japanese looking to cash in on unwanted jewelry and other items that they had held for years.


But on Tuesday, buyers outnumbered sellers by a wide margin. At Ginza Tanaka, the headquarters shop of Tanaka Holdings, gold buyers waited for as long as three hours for a chance to complete a transaction.

#8 According to a Chinese article quoted by the Blaze, there is a mad rush to buy gold in China right now...

People have to rush to buy gold … gold bullion out of stock yesterday, investors yesterday to spend as much as 600 million yuan to buy 20 kilograms of gold bars

The mad pursuit gold insufficiency is not just a game for the rich. Yesterday, the Yangcheng Evening News reporter learned from the East flowers to Bay store, many growers, pork traffickers, fishmonger recently put down his job went straight to the mall to buy gold.

#9 According to Reuters, dealers in Singapore are having significant trouble finding enough of a supply to keep up with the intense demand for gold that has erupted this week...

"People are actually buying everything, gold bars, gold coins. People are rushing to get a hand on it. We have a problem meeting the demand because we are unable to get new supply," said Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore.

#10 Bloomberg is reporting that over in India people are "flocking to stores" to purchase gold jewelry and coins...

Gold buyers in India, the world’s biggest consumer, are flocking to stores to buy jewelry and coins, betting a selloff that plunged bullion to a two-year low may be overdone.


“My daughter is just six months old, but I think it is never too early to buy gold,” said Sharmila Shirodkar, a 28- year-old housewife, while displaying a new pair of earrings she bought from a store in Mumbai’s Zaveri Bazaar. “I had been asking my husband every day if prices will go down more. I couldn’t wait anymore.”

If the big banks were trying to scare people away from gold and silver by crashing paper prices for those metals then they have utterly failed.

Instead of being frightened away, the global appetite for physical gold and silver is now more voracious than ever.

If the prices for gold and silver stay this low, we are eventually going to start seeing some very serious shortages in the marketplace.

And once reports of shortages of the actual physical metals become widely circulated, it will cause an "adjustment" in the marketplace that will shock everyone.

So hold on to your hats.  We are entering a period of time when there will be unprecedented volatility for the prices of precious metals.  It will be quite a roller coaster ride, but if you can handle the ups and downs it will be worth it in the end.

They Have Unleashed A Frenzy To Get Gold And Silver


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toys for tits's picture

'You didn't build that [gold takedown].'

SafelyGraze's picture

and they will search your car for it

even if your ride is limo-one


and you hide in the back seat

nope .. not under here!



rajat_bhatia's picture

Don't hate me, but I think gold is going sub $1000, the physical one too. 

StarTedStackin''s picture

I don't hate, I more pity, but I wonder what vehicle you think the smart money wil park itself in this time?



I'm all ears.

rajat_bhatia's picture

:-)  if I knew that, I wouldn't be here commenting on ZH.. I'm hoping I learn more

toys for tits's picture

I assume you're Indian based on your screen name.

If you are, then having that belief must be the same as eating a cow in the middle of the street.

The Indians got it right with their love of gold.  Their government has been attacking their wealth for hundreds of years.

rajat_bhatia's picture

Eating a cow is against religion, and there's a rational reason behind it, as cows are extremely essential for the agricultural land of India..

But I get your point.

I'm just thinking, remember the Japanese stock bubble, or the dot com bubble, housewives were the ones quoted in reports at the top of the ,market..

funny, though I'm no misogynist. 

DoChenRollingBearing's picture



Sign No. 11

I tried to back up the truck twice last week on gold.  I went to my LCS heavily armed with FIAT$.  But, I could only buy one Gold Eagle each visit.  I have been buying for decades, and never did I encounter such a shortage (over about a week's time).

FOFOA sez that, yes, the price of gold may go down, perhaps a whole lot, maybe to $400.  But, the physical gold will disappear.  The "paper price" may be $400, but if there is none for sale...?

And then when gold becomes visible and available again, $55,000...

fofoa.blogspot.com  <-- be prepared for long reads, I suggest starting with his 2009 posts.


Things seem extra spooky now.  PM price plunges even w/ QE...  Weird terror.  Stocks down!  Even the CBC is now talking about the secret world of gold.

"Spookier and Spookier..."


markmotive's picture

I wonder about the timing of the gold takedown and the Boston bombing.

Somehow connected? Is one a distraction for the other? Are both inside jobs?



knukles's picture

Paul Krugman Vindicated

This proves his thesis.  That lower prices beget lesser demand of something that's a barbarous relic which absolutely nobody wants and everybody's selling and that's why you cant find it anywhere because everybody's selling it so there's none available to buy.

Solid thesis, Dr (previous adviser to Enron) Krugman

DoChenRollingBearing's picture

Yep, knukles, there it is.  Why even in my own case, I would have only wanted FOUR oz, tops!  I guess the flood must have missed my hometown...  Krugman lets us know about the barbarous relic, indeed.

It was kind of you to highlight the news that Krugman is right.

NoDebt's picture

It's damned odd, I agree.  When buying ammo the price and the scarcity both went hand-in-hand (normal market behaviror).  This physical gold thing is weird.  If things don't snap back to where the price and the demand link up again in, say, a few weeks (delay based on the undenyable difficulty of moving large quantities of heavy metal physically around the globe to meet the market) then this is a real disconnect.

I think the real break-down is in the minting of new coins (I haven't heard of anyone sizable SELLING their existing coin stock, which means basically only newly minted coins are meeting/failing to meet demand).  Bullion, similar problem- somebody has to make the certified bars.  Haven't heard of anyone selling their bars, either (Cyprus doesn't count because their gold hasn't hit the market yet).  Again, only newly minted ones are feeding demand right now.

Somewhere in all this I wonder if the old "stock vs. flow" discussion doesn't apply.

It's too late to thing this through any further.  I could well we off base.  Dunno.  Gonna grab some sleep and think about it more in the morning.

Manthong's picture

Screw you PTB.

..and when the executive order hits again we will get a beautiful, free market of black.

GetZeeGold's picture




When their fiat becomes worthless, they will cling to their gold, guns, and ammo - Barry Soetoro (Love child of Frank Marshall Davis...the real reason he didn't produce the birth certificate)

Manthong's picture

I don’t have a problem with the slut/commie bastard thing, it’s the un-natural born citizen/constitution thing that really gets me.

It delegitimizes absolutely everything.

Oh, and the fraudulent document post is not such a good thing either.

tsx500's picture

he IS a legit USA citizen....the ladies on The View said so !

Pool Shark's picture



Great source for immediately available US Mint silver bullion:


Only about $27.75/ounce...


donsluck's picture

Sure, and I am a great source too, at that 20% premium!

Spigot's picture

"You've got the drive the price down to buy, and drive it up to sell." -anon

Someone handed thier buddies/owners a gift in order to help them get 2+ tonnes of gold coins (in one day) from the US Treasury and other governmental sources around the world.

Deep pockets had no problems financing, and then backing up their armored cars to the back loading docks on April 17th, and after.

Another "bank" robery in plain sight, IMO. And so gratuitously obvious as to be an "in your face" and "you will never have the time to cause us trouble" before TSHTF so of no concern to us to force feed $20 billion of options onto the market, which by the way has funded our massive purchases of physical gold, and BTW we will never have to go back into the market because by the time the options we sold are due, there will be no market...

Consider this a sentinal event and sign that TPTB know the end is upon us.

Mark this word: within 2 weeks everything will fall to pieces and we will be buying bread for $25 per loaf (or more, and your currency same proprtion). If you care about your families, please prepare accordingly.

Doña K's picture

It would have been more convincing if there were some pictures of people waiting to buy gold.

As I posted before, I am in the center of Joburg RSA (Sandon city) and the three dealers are sold out. The main office of the bigger one will sell you a few at a higher commission.

Spigot's picture

Dealers buy from the mints in a pretty steady stream. They do not typically have the financing to buy much more than their usual share. the 2+ tonnes bought at the US Mint on 17th April came from some other source of demand and financing, and there was not much delay in the draw down.

Marco's picture

The gold sellers simply don't want to get accused for profiteering, which would happen if they increased prices on coins and small bars too much while spot and london good delivery bar prices didn't move at all ... as for where the bars are coming from, the gold market is liquid as fuck.

Ignoring conspiracy theories the ETFs have seen significant outflows, which means they are selling bars.

Dane Bramage's picture

We're witnessing Grehsam's Law.  Simple as that.

auric1234's picture

And once all the good money is in the hands of savers, the bad money will pick extremely high velocity as nobody will want to hold onto it.

Sounds like a prelude to hyperinflation.


GCT's picture

Dochen have youtried to pick up some Jeweler's gold bars?  They are still plentiful if you have a source.

rosiescenario's picture

As others have mentioned, Ammo is not a COMEX traded item and its supply, demand, and pricing appear rational....it is very hard to find and priced accordingly when you do get lucky.


I just do not understand why pm dealers would even be using the COMEX price as a reference point. If there is that much demand and that much scarcity of the physical, why would they not be auctioning it to the highest bidder?


Dealers could run a Dutch auction fairly easily, so I am puzzled as to why the dealers are trying thier best to get top dollar.


I am now going to eBay to see what is happening there.

Boxed Merlot's picture

Solid thesis, Dr (previous adviser to Enron) Krugman...



On why he no longer went to Ruggeri's, a St. Louis restaurant: "Nobody goes there anymore. It's too crowded."  --  Yogi Berra


westcoastjan's picture

and add to that a poison letter to the president. Hate to be a conspiracy theorist, but the thought definitely crossed my mind that the possibility of diversionary tactics was there. Guess I need a tinfoil hat after all :(

olto's picture


Dear jan,

Actually, to all here

We don't have to eat everything that is put on our plate

a lot has been served up for one week, so

why not just see what the market says?

only two emotions count in these markets and, somewhere between greed and fear

seems about right to me


Go Tribe's picture

Well, I can tell you how the nexus of those events changed my behavior: I no longer hide my silver in our pressure cooker.

Jungle Jim's picture

All I know is, I was forced to sell basically ALL my 90 percent silver yesterday (Friday the 19th).

I did not do so because I thought it was a good time to sell. I understood very well that it was probably the worst possible time in history to sell, maybe the worst there would ever be again.

I sold it, after already selling one of my cars and selling everything else that wasn't nailed down and had any value at all, after holding out and living like a pauper or a hobo for months, because I had rent and bills to pay that couldn't be stalled any longer, bills stacking up, debts piling up, credit cards played out (one down to ~ $18, the other down to ~ $52), and exactly $5.01 left in my checking account. No cash except some small change.

If I'd had a flat tire on the way to the coin shop to sell my silver, I couldn't have gotten it fixed or replaced. If I'd had a car breakdown, or an accident, I couldn't have paid the tow truck. If any unforeseen emergency whatever had come up, I would have had no means of dealing with it.

So, I sold almost the only thing I had left to sell to raise any cash: my 90 percent silver. All of it. At a loss. A BIG loss. And I know I will never get it back.

In a month or so I will have to start selling my Silver Eagles. When those are all gone I will have to start selling my gold. Again, almost certainly at a BIG loss ... unless some unforeseen miracle occurs first. I've grown very skeptical about miracles lately.


Jungle Jim's picture

If you mean me, Prince, the answer is no. No job. No income at all of any kind whatever. 

Oh, here's the best part. You're gonna love this: the modest house of one of my Facebook Friends (I have only 19) burned down, pretty much to the ground, late last night. She barely saved her life, and almost nothing else.

And now, because of the Cartel's successful PM price-suppression schemes, which have impoverished me, I cannot help her. It's funny how people assume that everyone is completely selfish. But what hurts me the most is that I can no longer help my friends. Nor hinder my enemies either, for wealth can be a weapon.

55 men's picture

I am sorry you have to go through something like this...there are people who have had there backs against the wall like yours and have ended up doing amazing things. Stay as positive as you can. Just remember there is no calvary coming to save your life, you and only you, can do that. I wish you the best......there will be better days

Jungle Jim's picture

Well, 55 Men, thanks. Thanks for the thought, anyway. I hope you're right. 

GetZeeGold's picture




The unemployment rate should be in negative numbers by this summer. They'll be knocking on your door with free health-care and all the top paying jobs you can shake a stick at.


Until then just keep sucking down the Koolaid.

Wile-E-Coyote's picture

Hang in there, the worm will turn.

Juggernaut Nihilism's picture

Apologize in advance for giving a lecture you probably don't want to hear, but any time a friend asks me how to start investing, I always tell them, if they aren't already financially secure, that the best bet is to invest in themselves.  With all due respect, if you can't pay your bills and have $5 in your checking account, all-time-high $50 silver wouldn't help you.  It would only let you survive a few more months.  You said you still have some silver eagles and gold, if that' the case, sell all of it except a few end-of-the-world insurance ounces, and use the proceeds to go take a course to learn how to fix cars or fly helicopters.  Learn another language.  A friend and I, in our spare time, are taking a course to become certified EMTs in the evening after we get off work, just to have another skill to fall back on.  It is through a major college and only costs $800 total.

Because even in the "new world" of hyperinflation where your precious metals horde will theoretically support you forever, you are still going to need useful skills.  If you have no way of generating income right now, then you are only counting down the days until your metal runs out.

samcontrol's picture

learn another language... lol

so he can say " estoy en el horno" (argentine slang) , intead of...

I'm fucked !

Me to brother....moi aussi frere.

FreeNewEnergy's picture

I feel I have to chime in here with some advice for Jungle Jim. Start a business. Anything. Get paid in cash, if possible. Don't become another debt slave with a shitty job.

Here's my 100% true story: I think it was about 1992. I was broke, living with my brother and he wanted rent. I had $12 in pennies, my car, a little gas and a computer and printer. I took those pennies, rolled them up, took them to the bank, got $12, bought $12 worth of stuff at the dollar store - mostly cleaning supplies - printed up some cards that said "Happy House" and took my goods door-to-door in my neighborhood (in the city, a little distance from the dollar store). I sold what I had in about an hour, went back to the dollar store twice that day to re-supply and again hit the streets.

In one day - ONE DAY! - I had $45, more merchandise and people calling me with orders and questions. My biggest seller were sponges. I was able to get a big bag of them for $1, broke them up and sold them for $50 each. People would buy six or eight at a time. Also, Old Dutch Cleanser (like Comet), which I got 2 for a buck and turned around at $1 each.

In a week, I netted over $400, and then got a huge order from a guy who ran a cleaning business for about $250. I did all this in three residential blocks, barely tapping the market.

I did this for about a month, paid all my bills and took a job with a friend as a painter, which paid extremely well, and still kept getting orders over the phone. I didn't pursue the business further, but, looking back, figure I could have made serious money had I kept at it.

So, my advice, find a service which you can handle, print up some cards or use the internet. There are opportunities everywhere for self-starters. Avoid self-pity and self-defeating attitudes and people who are negative. You have worth and if you allow yourself to overcome your fear of failure, you will succeed.

(Just a side note: When I started my "Happy House" business, I was worried that people would see that I was just buying stuff at the dollar store and turning it over. Never happened. Years later, I realized that I was providing a service: bringing those cheap goods to their doors, and that was the "value added" aspect. Add value to an existing product or service and you can't miss. I know a guy who goes to the farmer's market every morning, brings home vegetables and sells them from his front yard. His day is done by 1:00 in the afternoon, and he plays a lot of golf in good weather. There are success stories everywhere - many on ebay - of people pulling themselves out of bad situations. You are no different.)

U4 eee aaa's picture

Moral of the story:

There are plenty of stupid, lazy people out there who don't have the sense to go to the dollar store.

That is what makes people like Buffett, and our friend above, rich

Imminent Crucible's picture

More often, it's not sense that people are short on. It's the answer to Bilbo's riddle: "Time! Give me time!"

When I head into town on a "building supply" day, it takes me half a day in town. Every. Stinkin. Time. Why? Because besides a trip to one, maybe two homebuilder supply outfits, I have to make a trip by the bank, run grocery errands for the wife (usually for the specials at two stores), and maybe stop for gasoline and a stop to fill a propane tank for the construction heater.

He wasn't selling sponges and cleanser. He was selling time and convenience. He's giving out the answer for everyone who says, "There are NO jobs where I live!" There may be no jobs in your area--so make your own.

Diogenes's picture

That is so touching. Like there are still jobs out there to get, and all you need is more education. When burger joints are hiring college graduates

Gerald Celente


Juggernaut Nihilism's picture

Who said anything about "education"?  I'm talking about skills.  People who can actually do useful things can always find a way to survive, especially if they have more than an dash of initiative and basic social skills.  I'm not talking about an $80k gender studies degree or a single ability to perform a very specific job for a particular company.  Spend one year and $5k getting certified as an EMT, IT/network technician, learning a second language, and learning a programming language or how to fix a car, depending on your constitution and temperment, and you will never be homeless or hungry, I don't care if you live in Manhattan or the Eastern bloc.

jvetter713's picture

And you are still paying your slave masters (CC's)...why?

xxxxx's picture

Man I feel for you. been there myself.

It makes me mad as hell to think some prick short traders in London are popping $1,000 champagne and having a good laugh about all the little guys they fucked over.

Silver and Gold are not a store of wealth. or a safe haven. It's a shark tank and they will fuck you over, whenever they feel like it. It's not a buy and hold investment, but strictly for speculating and trading. (if you have the stomach for it)

akak's picture

Had to downarrow you for this egregious bullshit:

Silver and Gold are not a store of wealth. or a safe haven ... It's not a buy and hold investment, but strictly for speculating and trading.

xxxxx's picture

Really Silver down over %50 from the last high does that sound like a "investment" to you?