This page has been archived and commenting is disabled.

Demand Surge and Shortages of Bullion as Stocks Fall Sharply

GoldCore's picture




 

DAILY PRICESToday’s Gold Prices: USD 1,125.50, EUR 998.23 and GBP 730.99  per ounce
Yesterday’s Gold Prices:  USD 1128.50, EUR 999.38 and GBP 728.91 per ounce.
(LBMA AM)

- Einstein, Physics, Gold and The Formula To End Economic Decay
- Demand Surge and Shortages of Bullion as Stocks Fall Sharply
- New 'Bullion Coin and Bar Premiums and Availability' - See Table

- Gold Outperforms All Assets In August - See Table

Gold Outperforms All Assets In August
As month end approaches, gold has outperformed the vast majority of major assets (see table above) and is nearly 3% higher in August while leading stock indices have fallen by more than 6% and some crashed by 20% this week prior to the recent bounce.

We are extremely busy and this was one of the busiest weeks of the year so far - both in terms of number of transactions and total volume in dollar sales terms. This increase in physical demand should lead to higher prices in the coming weeks. 

This has been the case for bullion refiners, mints and dealers all of whom say very high demand for physical this week. Indeed there are again supply bottlenecks and shortages of many popular bullion coins and bars - especially silver bullion coins and bars (see table below).

Read more on GoldCore.com

Important News

Gold Up in Asia Trade – The Wall Street Journal
Gold Pares Biggest Weekly Drop in Month on U.S. Growth Concern – Bloomberg
European Stocks Decline, Erasing Gains in Roller Coaster Week – Bloomberg
Oil prices extend gains after biggest daily climb in six years – Reuters
Federal Reserve Increasing Scrutiny of Bank Payment Systems – The Wall Street Journal

Important Analysis

Reflation threat to bonds as money supply catches fire in Europe – The Telegraph
Optimism for Africa despite threat from China downturn – The Telegraph
This Weird Story Suggests Gold and Miners Are Near a Bottom – Casey Research
Gold and Silver Have Never Been This Cheap – GoldSeek
Expect markets to fall 20 to 40 percent: Marc Faber – Yahoo Finance

More breaking News & Commentary from GoldCore.com

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sat, 08/29/2015 - 08:50 | 6484329 Magnum
Magnum's picture

No shortage of gold for sale yet. My LCS has bullion today for sale at low premiums, but less on display than he had two months ago. I can still buy gold Eagles, maples, etc,

During the previous run-up in price, there was definitely less availability in shops.

My pick Iof the day, this guy will mail you 1/2 oz eagle for $630.

http://www.ebay.com/itm/2015-1-2-Troy-Oz-Gold-American-Eagle-25-Coin-SKU...

Sat, 08/29/2015 - 08:47 | 6484328 Dr. Bonzo
Dr. Bonzo's picture

Hong Kong gold shops that were throbbing with mainland peasants when gold was at 1900 are empty now gold is at 1150. Give me a fucking break.

I believe in PMs and we're ready to load up on silver, but this perma-bull bullshit hasn't served anyone.

Sat, 08/29/2015 - 01:10 | 6484052 kuro_neko
kuro_neko's picture

of course there is no gold shortage

if you just go to any gold dealer in a big capital like NYC, London, Geneva, Tokyo, Singapore, HK etc...

you can buy (or sell) without notice millions worth of 99.99% certified gold bars. It happens every business day.

only idiots living in a deep remote cave in Iowa, Montana, Nevada etc. and whose only link to the outside world is ZH and co think otherwise.

 

 

Sat, 08/29/2015 - 15:58 | 6485294 swass
swass's picture

ZH is not the issue. It it the guys that find a conspiracy under every rock from Infowars that somehow found a home on ZH. Don't get me wrong, I'm a libertarian and there are plenty of legitimate conspiracies and lots of corruption in government and big business, but ZH has been inundated with the more unsophisticated Infowars types that have a bad high school education and that's about it.

Sat, 08/29/2015 - 07:31 | 6484284 bunnyswanson
bunnyswanson's picture

What if the propronents of gold/silver purchases were working for the Federal Reserve Bank and their intentions are to have the US population's PM purchases on the Debit & Credit sheet.  Below Deep Storage and above Working Stock

http://www.wallstreetdaily.com/2013/07/16/fort-knox-gold/ The comments blew me away.

The Biggest govt lie - There is Gold in Fort Knox

https://www.fiscal.treasury.gov/fsreports/rpt/goldRpt/current_report.htm July 31, 2015 Gold totals =

Take note of the totals on this report and compare them to the 2011 report embedded in this site

http://www.usagold.com/gildedopinion/gold-confiscation-ganz.html

"The gold reserve held by the Department of the Treasury is partially offset by a liability for gold
certificates issued to the Federal Reserve Banks at the statutory rate, which Treasury may redeem at
any time."

http://data.worldbank.org/indicator/FI.RES.TOTL.CD Global totals.

 

Fri, 08/28/2015 - 18:18 | 6483249 idahosinker
idahosinker's picture

There i only a temp shortage of small silver forms.

You can get all the 1000oz you want.

The industery is set up for a certian volume.

When people ramp up investment demand, shortage show up with premiums shooting up.

But investment is maybe 20% of silvers usage.

i see no increase in gold product premiums.

I think they are going to crush both metals.

You think these guys are going to crush the economies and the world and let people survive in metals, your nuts.

Every door is closed.

I must say places like Vietnam run on gold.

All land transactions are done in gold.

They only use paper for day to day stuff.

i can see that the people in India use gold as money.

It should be interesting.

At least 80% of my life is done. I feel for the younger people.

Fri, 08/28/2015 - 18:18 | 6483248 idahosinker
idahosinker's picture

There i only a temp shortage of small silver forms.

You can get all the 1000oz you want.

The industery is set up for a certian volume.

When people ramp up investment demand, shortage show up with premiums shooting up.

But investment is maybe 20% of silvers usage.

i see no increase in gold product premiums.

I think they are going to crush both metals.

You think these guys are going to crush the economies and the world and let people survive in metals, your nuts.

Every door is closed.

I must say places like Vietnam run on gold.

All land transactions are done in gold.

They only use paper for day to day stuff.

i can see that the people in India use gold as money.

It should be interesting.

At least 80% of my life is done. I feel for the younger people.

Fri, 08/28/2015 - 17:29 | 6483140 Flying Wombat
Flying Wombat's picture

People line-up on the shortages/no shortages debate almost like a relgious debate - especially the "no shortages" people.

Fri, 08/28/2015 - 15:55 | 6482901 sethco
sethco's picture

All indices green on the week!

What an incredible shit-show.

Fri, 08/28/2015 - 15:28 | 6482817 harrybrown
harrybrown's picture

bullionbypost is getting low or sold out of many silver bars here in UK esp the larger bars,
thegoldbullion also has similar bar shortages in uk. they were both short last month, with coins running out also, but most stocks have been replenished for now. There definitely is less silver available now than 3 months ago, so Watch this space i guess.

 

Fri, 08/28/2015 - 11:50 | 6481791 TongueStun
TongueStun's picture

ZH, where only the pop-ups work consistently

 

 

There is no shortage of higher premium silver, at higher premium sites.

 

Yesterday you could not buy a Sunshine bar of any size on JM Bullion or Silver.com.

 

I guess the US mint won't be striking any ASEs anytime soon, but whackos say there is no supply problem....uh huh

Tue, 09/01/2015 - 10:02 | 6485244 swass
swass's picture

Supply chain.  Plenty of silver is out there.  It may need to even be purchased in the futures and brought somewhere to then be melted down into different bars for retail sales.  Most retailers don't deal in 1000oz silver bars, which are what is stored in these warehouses.  There is a huge difference between a retailer not having stock on a retail-sized item and there being a literal shortage on the commodity.  There is no shortage on silver.  That retailer may just simply not have stock or be able to quickly access it in their retail supply chain.  I was also told by some of the dealers that they batch their orders, so there is often some delay.  Online dealers don't usually want to stock much, becuase of the price volatility.  So they source them elsewhere and dropship them to you.

Fri, 08/28/2015 - 11:16 | 6481632 swass
swass's picture

Funny, I bought some with no problem last month.  Can we stop with the 'huge demand' and 'shortages'.  There was an article I agree with some points on the other day on ZH about gold, stating that so many of these gold bloggers are emotionally tied to it and have an excuse for why they were wrong with their forecasts/projections in the past.  I don't think anyone has to worry about no gold or silver being available.  It's all around us.  I bought because it makes sense to hold some as a hedge, but I also believe after a multi-month rally, it will probably continue it's decline into the 700's, before entering the next bull phase.  If that day doesn't come, then I bought at the bottom.  If it does, then I'll just buy more when it hits that next bottom.  I'm not living in some dream world of $10k gold, because it's 'fair market value'.  The market determines what is fair market value.  If I am able to buy the gold at today's average price, which I am, then that is fair market value.  These types of gold bugs are basing their forecasts and predictions on emotions and a lack of understanding about markets, regardless of whether you believe they are manipulated or not.  The price of gold, silver, etc, isn't simply based on how rare it is, for example, it is based on the supply vs demand in general.  This includes factors like emotion, such as whether people really desire it regardless of how rare it is.  Rhodium is far more rare than gold, but why is it priced so low right now?  Because the balance of supply and demand have it priced so.

Sat, 08/29/2015 - 02:36 | 6484120 Squid-puppets a...
Squid-puppets a-go-go's picture

lol thats really funny. Takes some twist of logic to claim gold is valued fairly, then on your very next point concede that the market may be manipulated

Sat, 08/29/2015 - 15:04 | 6485169 swass
swass's picture

Then perhaps you misunderstand.  Gold is not an illiquid market, and the price is free floating.  As I stated, even for those that feel there is manipulation in the pricing mechanism for gold, there is no way to explain how you could have 'huge demand' and 'shortages' without government or monopoly price controls.  If there were shortages, prices would simply go up.  Manipulations in pricing mechanisms happen all the time across the board, but these are often things that are featured in ZH articles on HFTs and the like.  Milliseconds.  Let's say you even think a central bank selling gold would 'suppress' the price.  Buying and selling is part of the market at work.  If they put supply on the market because they want to exchange their gold for dollars, this is hardly manipulation; it is additional suppply coming on the market that may result in a temporary drop in prices if demand were to remain proportionally the same. 

Fri, 08/28/2015 - 21:03 | 6483627 PlayMoney
PlayMoney's picture

Maybe a month ago. Just looked at goldsilver dot com and deliver on a moster box is sep 24th

Sat, 08/29/2015 - 15:45 | 6485195 swass
swass's picture

This probably has more to do with their supply chain than anything.  I purchased from NWT mint and they also had a long lead time, but they've always had a long lead time.  I've never seen where they didn't.  That is just how they operate.  We also must recognize that we're dealing in the retail market. If you go into the futures and take delivery, you'll get it at the lowest possible price.  There you are looking at taking delivery on 100oz gold contracts or 5000oz silver contracts.

Fri, 08/28/2015 - 15:44 | 6482872 TongueStun
TongueStun's picture

There is a huge demand and there are shortages. Take your head out of your nether regions.

Fri, 08/28/2015 - 18:01 | 6483212 swass
swass's picture

"There is a huge demand and there are shortages."

That is why I can go to any precious metals dealer and get gold for 2% (or whatever) over spot?  You have no comprehension of financial markets or basic economics if you think there are shortages with huge demand and yet the price remains suppressed.  It doesn't work like that.  If demand outstrips supply, the price will go up until the two are in equilibrium with each-other.  The only time where this is not true is when you have fixed prices, such as with Venezuela, where as you can see from the empty shelves where goods used to exist, demand is outstripping supply because of the price fixing.  Pretty basic stuff here.  Price is too high, you get excess supply, whereas if it is too low, you get too much demand.  Freely floating markets, as we have here, take care of that or it would be pretty friggin obvious.

Sat, 08/29/2015 - 06:53 | 6484264 conscious being
conscious being's picture

The major distortion is of course that they have managed to comingle demand for paper certificates to arrive at a price. Its like you are setting the price for onions and you don't own any onions. You just call out a number and distort the market. Another is that all are forced, at the barrel of the federal gun to accept the corrupt paper. Ponzi money undermines the democratic process in many ways. Besides lubricating the purchase of the people's reps, who even needs the people's reps to authorize spending when banksters can just print up the funds? To buy your local SWAT team? with MRAP?

 

 

Sat, 08/29/2015 - 06:34 | 6484250 TongueStun
TongueStun's picture

You can't liar.

Sat, 08/29/2015 - 15:26 | 6485227 swass
swass's picture

lol I am trying to decide whether you are simply a troll or whether you are actually trying to make an argument.  Either way, you've provided no actual specific rebuttal for anything; so if you're not just trolling, then you may as well be.

Sat, 08/29/2015 - 02:06 | 6484101 jaxville
jaxville's picture

   Not many pundits are mentioning the amount of material being sold to dealers from the public.  The increased demand came as dealers were buying less from distributors as they were getting a good portion of their inventory across the counter from the public.  It is just a matter of time before refineries and mints catch up to meet the increase in demand.

   Keep in mind that official mints are also gov't run.  Only a fool would expect them to operate as though they were private enterprises.

  Having said that,  if the public were to enter the precious metal markets in any meaningful way the demand would easily swamp the distribution system, especially if the financial authorities were able to prevent a run up in price.  As long as paper derivatives carry as much weight as physical with most investors we can expect supply and demand issues to be irrelevant as far as pricing goes.

  Our credit based based currency system is the foundation upon which all power of the establishment rests.  It is a scheme based on confidence and there is no way that the price of something that can affect that confidence will not be controlled.

Fri, 08/28/2015 - 22:12 | 6483794 Fred Hayek
Fred Hayek's picture

Freely floating markets?
Oh the charm of childish naivete.

Fri, 08/28/2015 - 11:10 | 6481604 Night Hawk
Night Hawk's picture

I just picked up a bunch of Eagles, Maples and a 10oz bar with no delay. It all depends on where you order from.

Fri, 08/28/2015 - 11:01 | 6481563 Arthur
Arthur's picture

Nice sales piece.  how much are down for the year again?

Fri, 08/28/2015 - 18:54 | 6483327 Fukushima Fricassee
Fukushima Fricassee's picture

You want a peice when you go down on a queer?

Fri, 08/28/2015 - 14:08 | 6482479 CarpetShag
CarpetShag's picture

Clients who desire immediate delivery are requested to register at our sister site, www.tungstencore.com

Fri, 08/28/2015 - 17:54 | 6483201 OldPhart
OldPhart's picture

I always buy my bulk gold from tungstencore.com.  Their gold floats!

Fri, 08/28/2015 - 12:06 | 6481913 Urban Redneck
Urban Redneck's picture

You'd think this was their first year in business and they weren't familiar with the seasonality of gold...  That said I did lighten my exposure to paper (of all types) a few weeks ago, which nudged my avg. physical cost basis up, but I don't see any less availability in the marketplace now for 1oz gold bullion or kilo silver bars than I did when executed the transaction.

Do NOT follow this link or you will be banned from the site!