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Gold Bullion Dealer Unexpectedly "Suspends Operations" Due To "Significant Transactional Delays"
What makes the current sovereign default episode different from previous ones is the uncanny stability and lack of buying of "fiat remote" assets such as gold and silver, and to a lesser extent, digital currency such as bitcoin. Indeed, all throughout the Greek pre-default escalation and ultimately, sovereign bankruptcy to the IMF, it seemed as if there was an absolute aversion to the peak of Exter's inverted pyramid.
What is even more surprising about the lack of any gold price upside is that it is not due to lack of demand. Quite the contrary, because as Bloomberg wrote last week, "European investors are increasing purchases of gold as Greece’s turmoil boosts the appeal for an alternative to the euro."
Demand from Greek customers for Sovereign gold coins was double the five-month average in June, the U.K. Royal Mint said in an e-mailed statement. CoinInvest.com, an online retailer, said sales on Saturday and Sunday were the highest since Cyprus limited cash withdrawals in 2013, driven by a jump in German, French and Greek buyers.
Investors are searching for a safe haven after Greece imposed capital controls, closed banks and stopped selling gold coins to the public until at least July 6. Chancellor Angela Merkel on Monday said Germany is still open to negotiations if Greece wants.
“Most of our common gold coins are sold out,” Daniel Marburger, a director of Frankfurt-based CoinInvest.com, said by phone. “When people learned that the Greek banks will be closed, they started to think that it may not be such a bad idea to have some money in gold.”
The bullion dealers themselves are enjoying a jump in sales to retail customers:
GoldCore Ltd., which buys and sells bullion, reported coin and bar demand rose “significantly” on Monday. Sales to U.K. and Ireland today are about three times the average for the past three Mondays, the Dublin-based firm said in an e-mailed statement.
The U.S. Mint has sold 61,500 ounces of American Eagle gold coins this month, the most since January.
BullionVault, which says it operates the largest online physical gold trading platform, reported a jump in sales during the first half of this year, a sign of a broader increase.
However, it is the "paper" gold market where things were most perplexing in recent months. Recall that, as Zero Hedge broke and first reported, in the first quarter of the year, or the same time the Syriza government took power, something very dramatic took place in the US derivatives market, where first JPM saw an absolute explosion of its commodity derivative holdings (a broad umbrella which is not broken down further):
... coupled wih Citi's surge in "precious metals" derivatives which soared from $3.9 billion to $42 billion.
But what is most confusing is how even as physical metal demand clearly rose across Europe in the past few months and the price of paper gold actually declined, perhaps facilitated by some "hedged" derivative positions on the short side of precious metals, some bullion dealers have actually found it impossible to survive, and in the last few days at least one major gold bullion dealer, Bullion Direct, greeted customers with the following notice on its website:
Bullion Direct has experienced significant transactional delays. To avoid further inconvenience or other adverse consequences to our customers, Bullion Direct is suspending its operations as it attempts to resolve those issues. We intend to keep you informed at this website. Thank you for your patience.
Just what are "significant transactional delays" and how bad is the physical gold supply-chain if it can put at least one dealer out of business. Another question: is this a solitary failure by gold vendor due to a one-off problem with working capital, or is something more systemic about to be revealed in the gold bullion sales industry?
We look forward to finding out, but in the meantime our advice to buyers of physical precious metals is the same as always: if you purchased it and you can't hold it in your hand, it isn't yours.
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The JPM derivatives chart is the canary in the coal mine. That chart tells me we are on borrowed time. As long as fiat was convertible into sound money the game was on. Now the Gold and Silver deliverables are coming to an end. I think we are seeing a planned manipulation down and then a declaration of force majure from the Crimex and settlement in worthless fiat. Then it's on like Donkey Kong in the Weimar Republic.
I am long canning, freezers, poultry, beef, pork, seafood, antibiotics, and canned goods. I am shorting hookers, pensions, higher Ed, and Bankers.
Hookers will hold up better than pro sports. They have a more personal touch when it comes to balls.
They have a more personal touch when it comes to balls.
Speaking of balls, I wonder if Reggie kisses Barry's balls for good luck before he hits the links?
I don't care what you say about Merit Gold, they had the best free-shipping bullion prices online before they went under.
Nowadays, Provident Metals is awfully low with free shipping that only took 3 business days from halfway across the country.
You can always buy Bitcoin instead. Last Price: $257.75
QX doesn't the price of bitcoin also feel a little "suppressed" too in the past year? There have been a lot of BTC gone unaccounted for since mtgox and from a gut feel perspective it seems a little counter-intuitive.
You can always buy Bitcoin instead. Last Price: $257.75
Yeah that's all great and good until (ahem, when) the Feds put the squeeze on companies like Coinbase.com and you can't convert your precious BTC into USD (or any recognized currency) anymore . . .
This is very weird. I've purchased from Bullion Direct. At the time, they were exceptionally reliable. I placed my order, they sent me a verification locking in my order at the price that moment, and then they verified receipt of my payment, then of shipping, then I got the delivery. It was very competent, all the way through.
I haven't ordered from BD in a while. I wonder what issues they're dealing with. I doubt it's their business itself having difficulties, unless there's an insider robbing the place. I wonder if it isn't a so-far-secret supply problem that is forcing them to hold people's money for too long. Or something. I know a few years ago they got into having their own "exchange," and vaults, etc., but I never got into anything complicated regarding PM's. I just want to buy stuff, pay for it and get it. Simple like that.
I hope people aren't getting hosed right now in this BD thing.
This feels like a giant commercial for gold...including some of the convenient comments. Too obvious guys.
A single bullion dealer who has months of bad feedback for slow deliveries is not evidence of a supply chain issue for physical Gold.
http://golddealerreviews.com/bullion-direct
http://www.bbb.org/central-texas/business-reviews/gold-silver-and-platin...
Hmmmmmmmm
Texas ...... gold bullion ......
Gold bullion ..... Texas ......
..... repatriation .....
Texas
http://in.reuters.com/article/2015/07/03/india-gold-asia-demand-idINKCN0...
Gold prices in major consumer India were quoted at deep discounts to the global benchmark this week on tepid demand and adequate levels of inventory, dealers said.
Prices were quoted at a discount of $8 to $15 an ounce over London prices, much wider than the $1 discount in mid-June, they said.
Persistent weakness in India, the world's top consumer of gold last year and the No. 2 buyer in the first quarter of this year, could add pressure on global prices, which are currently just above a 3-1/2 month low.
Gold prices in India have fallen more than 3 percent in a fortnight, tracking losses in the global market.
"The price drop failed to lure customers," said Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation.
Two-thirds of India's gold demand comes from rural areas where jewellery is the traditional store of wealth for those with no access to formal banking. However, in the current monsoon season farmers in rural areas are spending on agriculture, leading to a decline in bullion demand.
Lack of weddings and festivals are also hurting gold demand, dealers said.
"Weak demand will remain for another month. From August onwards, jewellers will start restocking for the peak festival season at year-end," Bamalwa said.
For the moment, though, inventory levels are more than adequate, dealers said.
Freegold is coming bitchez...$50,000 is just around the corner.
backwardation until the Euro crisis passes or actual web site problems?
Let's see....do I want something tangible or the shadow of something tangible???
Socrates! Where are you?!!! Socrates!!!
@DEATH BY COLD STEEL..
Here's an AttaBoy for the effort. Keep preaching.
JPM owns muliple metals warehouses.
JPM is filling said metals warehouses.
Always do what the Big Boys do....
Except for the leverage of course
JPM owns muliple metals warehouses.
JPM is filling said metals warehouses.
Right on! When JPM is buying and holding over $350 million in PHYSICAL silver you know something is coming down the pike and those without some in their possession are going to be sorry.
I dont have any gold..I have some silver tho, and going to try and hold on to it best I can..From what I hear, the globalists want us all to be robots. You cant build a robot with a dollar, it needs silver...gold is even better to make the microchips run faster. Get my drift here?
Diversify into a little bit gold too, bichez. 1% over spot.
Paper Gold is going to zero before you're going to see your repricing. You're better of getting off ZH and doing something with your life until it happens.
There is plenty of gold on apmex and blanchardgold
But judging by the premiums, it is platinum that is in short supply.
I've been a customer of Bullion Direct for over 6 years and they have always been a straight up operation from my perspective. What I sense here is a canary in the coal mine . . .
Do what the insiders do, not what they advise you to do.
Your bullions in the mail...
correction: in the email....
I got word of this from one of the reviews on my site on the first:
http://www.comparegoldandsilverprices.com/gold-silver-dealer-reviews/bul...
I will get lit up like a mo fo for this by the gold bugz, but here it is:
First, let me clarify: yes, I own gold - about 5% of my net worth. I am pretty illiquid as most of my holdings are real estate. I think of gold as insurance that I can convert into liquidity on relative short notice. I even had to make a claim on my gold in 2011 when I had to sell some during a cash flow crisis and some RE expenses (fucking roofs). IT WAS ONLY BY LUCK that I happened to be a seller in the summer of 2011 and made money on the gold I had bought in 2004.
However, I am not a happy teddy bear with the price of gold right now. Not at all. I was a buyer in 2013-2014. Not much, thank God.
Because in fact, I think my insurance premiums I have been paying would have been better spent self insuring!!!! ie not buying any gold and holding cash. Gold? No way in hell am I buying any more gold. I don't care how cheap it gets. I don't do paper gold. Fuck it, right now does it matter? Gold is going down.
Look at the shit show in Greece and Gold is going down?! The whole Middle East is on fire and gold is going down?! The US is in a political shit storm and gold is going down?! Men and Men are getting married, cats and dogs are screwing in the alley and gold is going down?!
And guess what, I think we will see $800 gold within the next 12 months. I tell you this, not as a gold hater, but as a gold lover. Oil, gold, copper...all heading for the fucking dirt. Real estate in the US is ON FIRE. Stocks ON FIRE. Anyone who focuses on gold right now is asking to get butt raped. You would be better off holding USD right now no matter how much you think it shares in common with ass paper because here is the sad fucking truth.
Anyone who thinks gold is going up is betting against the house and the house just decided 2 faggots represent a marriage; Junkcer as Hitler is OK; Bruce Jenner is a woman; the Confederate flag is about slavery;illegal aliens are "dreamerz", the 10 commandents don't matter and that the Islamic State "has nothing to do with Islam". AND THE FUCKING REST OF THE WORLD AGREES WITH THEM AND ADORES THE SMELL OF THEIR SHIT EVEN!
Gold bugz, wake up man. You're in OJ land. I know this shit just be calling you 'buy me, buy me, buy me" but do yourself a favor, don't OG (overgold) and end up in the fucking poorhouse.
I hope you are right, and gold does fall to $800.00. Personally, I think your target is a little high. I'm thinking $700.00.
Anyway, I can still remember when gold touched $350.00 or thereabouts. The turmoil it created, sent a lot of gold traders to the wall. A lot of 'respected' gold investors were on TV whinging about how gold has had it's day and that it was time to divest. Funny that, they picked the end of the bear market to absolute perfection.
I assure you, I will take note of your warnings, but it won't stop me buying from about $1000.00 and under. I'll be well positioned for the next commodoties boom. Should be in about 10 to 15 years from now. I'm patient, I can wait that long to quadruple the value of my gold holdings.
In the meantime, good luck with your overvalued Realestate. Just watch out for that thing called deflation. It can be a nasty little sucker.
real estate, gold, cars, women....just remember, if you buy it right you make your money on the buy!
I agree RE is overvalued right now. I am going long on the word of Jesus Christ and USD, coin of the realm.
Dear Gold Bugz,
First, you must accept you are a gold bug ("We admitted we were powerless over gold - that our lives had become unmanageable") I say this with the utmost respect because except by the grace of God there go I.
Did you see that movie with Will Smith "I am Legend"?
Ok, imagine you are Will Smith in that movie and you are looking for a cure to the financial woes of the world today and you think Gold is the antidote to the world and if you buy gold you will be innocuated from this disease that is turning the world upside down.
Here is the truth: the rest of the world (ROW) thinks you are a freak and they will hang you up by your left food and eat you alive if you buy gold on the way down to $800. The ROW is running the shit show now and you are a hunted animal.
The hard truth is the world is a sick fucking place and there is no way in hell that you buying a few ounces of gold are going to save it or yourself. CASH MONEY AND JESUS CHRIST ARE THE ONLY THING THAT WILL SAVE YOU (and in the reverse order) and if you don't like cash then at least knock down your debt because if you have any debt whatsoever you most certainly should not be buying gold.
Keep cash and just pray to Jesus and read the bible and you will be better off than if you have a safe full of gold.https://en.wikipedia.org/wiki/Twelve-step_program
Peace
DiMC
FRNs are not cash. They are evidence of debt. Although all debt based "money" schemes have not collapsed yet they will because they must. If you don't understand this then you are too ignorant to be commenting on ZH.
Does Jesus pump septic tanks?
Exactly!!
Price Controls (ie JPM et al) cause shortages
Shortages cause rationing and ultimately ...... black markets.
And that is where you will get a fair price for PMs!
The only problem I see with gold and silver for daily use is that for gold, it's too damned valuable to be minted as a coin that would be spendable and practical. The coin would have to be very small. Silver is a much more likely candidate to be practical for daily transactions, but right now most bullion coins are not minted to be practical in daily transactions. How do you make change in silver for a one ounce coin? Yes, I know you can have half ounce coins, etc., but people would want to see a minted standard. Schiff Gold sells the "barter bags", which contain silver coins of different weights. It's not a bad idea, but everyone would have to get on board. Also, you have to start worrying about purity and counterfeit coins. An assay test costs about $35.00, and is not practical for "on the spot" testing. The coins sold now are minted more for being a value storage method. This is where the government always "one ups" any attempt to circumvent their issued currency. Paper and the worthless coinage we are now issued are very practical for daily use and transactions. That's what makes fiat paper and coins the preferred method of use in the first place. If it hits the fan for the dollar, don't be surprised to see people trading in the US using Chinese currency (or any other stable currency). Alternate currency could be purchased on the black market using silver and gold. Because if the dollar is junked, and the Chinese have a stable currency, it would make sense to do so. After all, US currency is still accepted in many countries directly around the world (while it's still trusted). That could change. Again, people will gravitate to what's convenient and trusted. As for the manipulated price of precious metal, that ends once the paper and bogus metal fiat becomes untrusted enough that people start to flee in significant numbers. They will simply not have the physical metal to deliver once demand rises. Then it's game over.
Have you ever seen a silver 3 cent piece? New coins can be made of the silver bullion and gold bullion. Private mints can create standardized coins that weigh a standard weight and size. This cannot be faked. Just weigh the coin. There are a lot of old silver coins out there being saved by people that will come back into circulation. Find an individual retailer you know and offer him silver for his goods. Many times he/she will take the coins. I went to an indepent hamburger joint one time, the owner was the cashier. I placed FRNs on the counter next to a Libertad and asked him to choose which he wanted for payment. He grabbed the silver even though the market price was less than the FRNs on the counter. He didn't even hesitate. I have had this experience with other small businesses as well over the years.
For those who are down voting me, it is OK. being a gold bug is a lot like being a sex addict. i understand
a little now and then is OK...but when you start buying 3 pieces of prime Los Angeles grazed Ukrainian ass for a fantasy session and begin tearing up a hotel room and empty the minibar at the Santa Monica Fairmont with it's funky angled windows (President's Club) and wake up the next morning with $10K less in your bank account and used condoms everywhere you are like "what the fuck did I just do? This isn't a fantazy...this is a nightmare."
And you have to call one of your best childhood friends to confess and to ask him to help you and he asks "well, no one got hurt right? Hey, was it fun? Do it again, put a pillowcase on your head, and video tape it for me. I'll show it to the guys" and then he enables you to do it again and so you do!
And on the second day you are crying and you call your little brother and he finally says, "Hey man, I saw the pillowcase video. When the fuck did you join the klan and become a sex addict? Everyone in town is talking about you. Even mom knows. What the fuck are you doing? Do you want to die of AIDS? get your ass back home and let me punch you in the face to set you straight."
So gold bugz, i am your little brother and I am here to tell you DON'T BUY ANYMORE GOLD BECAUSE YOU ARE GOING TO GET KILLED DOING THAT SHIT!
You are not my little brother. My little brother is alot smarter than you.
MARK ONE. we will revisit in 3 months and see who is smarter.
Yes, FRNs are debt. Technically, they are promissory notes that earn no interst and are signed by the UST.
Guys, wake the fuck up. I did. I have a Rolex I bought in 2008 that has doubled in value because I got lucky and it happened to be the last of the Pepsi SS with the 3186 movement. (worth about $15K now).
Even my wrist watch has out performed Gold!!!
today Gold is at $1,168.30
I knew these guys were frauds about 4 years ago. I ordered from their eBay. They delayed. I negative feedbacked them. THE DUDE CALLED ME IN THE MIDDLE OF THE NIGHT TO SCREAM AT ME FOR DOING SO.
Yeah.
DYODD or get hosed, serfs.
GBz who are down voting me. Listen, I love gold. I love the coins. I love the artwork. My favorite are the 1930s double eagles of which I have a few...but I am telling you gold is on a elevator going to hell right now. We will see sub $1000 before the end of this year so please...if you are going to buy at least wait until then.
Peace out.
What is the name of the PM Dealer that aligns itself with the Tea Party? Money Market Metals or something close. I am pretty sure they are hitting on all cylinders. At least, that's what I heard on the street.
What is confusing me, is the disparity between Au and Ag and yet all here see gold going to the floor while silver fails to get even a nod from the know-everythings. I hear "Buy gold" from the usual sources but the more thoughtful websites keep hinting that silver is the real safe haven, why?
Barron's ran some articles detailing the reasoning behind this but I couldn't get copies out here in a very rural locale and the date is not known to me...