In part 1 of his 2 part report on the ever-tightening supply of physical gold, Chris Martenson describes the fascinating data that “reveals the extent of the West’s massive dis-hoarding of physical gold”. He points out the enormous and growing disconnect between the cash and physical markets for gold which, as he explains, has major repercussions for physical gold storage.
Martenson also describes how the Fed watches the price of gold very carefully, regarding it as a “golden thermometer” of market sentiment.
An important update on the supply of physical gold
by Chris Martenson
One of our long-running themes here is that the truly historic and massive flows of gold from West to East is (someday) going to stop, for the simple reason that there will be no more physical bullion left to move.
It’s just a basic supply vs. demand issue. At current rates of flow, sooner or later the West will entirely run out of physical gold to sell to China and India. Although long before that hard limit, we suspect that the remaining holders of gold in the West will cease their willingness to part with their gold.
So the date at which “the West runs out of gold to sell” is somewhere between now and whenever the last willing Western seller parts with their last ounce. As each day passes, we get closer and closer to that fateful moment.
Read more on Chris Martenson’s PeakProsperity
Today’s Gold Prices: USD 1137.60, EUR 1016.26 and GBP 747.23 per ounce.
Friday’s Gold Prices: USD 1145.50, EUR 1027.63 and GBP 752.18 per ounce.
Gold in EUR – 1 Month
Gold closed at $1146.60 with a 0.61% gain on the week. Silver closed at $15.08, down $0.05 and down just 0.46% for the week. Euro gold fell to about €1023 and platinum lost $7 to $945.
Read more on the GoldCore.com blog
Gold steady after earlier losses amid worries over U.S. rate hike timing – Reuters
Gold ends lower, but posts a gain for the week – MarketWatch
Gold eases as Yellen remarks on rates boost dollar – Reuters
Gold Bears Grow Weary as Options Ratio Drops to Three-Year Low – Bloomberg
Banks Discuss Shifts to How London Gold Traded for 300 Years – Bloomberg
A Comex Bank Run For Scotia Mocatta – TF Metals Report
In cash we trust – abolish it and you invite tyranny – Financial Times [paywall]
Congress and the Fed Refuse to Learn From Their Mistakes – Ron Paul Institute
What If This Retail Silver Investment Shortage Doesn’t End? – SilverSeek.com
Thoughts from the Frontline – Balloons in Search of Needles – GoldSeek.com
Read more News & Commentary on GoldCore.com