Stunning Divergences Between Physical Precious Metal and Futures Prices are Materializing

Violent price divergences are developing between physical precious metals and futures prices for the big four: gold, silver, platinum, and palladium. Rapidly rising initial and maintenance margins on precious metals futures contracts into a collapsing global stock markets have undoubtedly caused forced selling of precious metals futures contracts. In addition, margin calls in both futures and stock markets have exacerbated further selling in PM paper derivatives markets outside of that already caused by CME raised margins. If one only listened to mass media financial journalists, one would believe that precious metal prices were collapsing. However, a fact hidden by mass media financial journalists is that a violent divergence between real physical precious metal prices and future contract prices is materializing right now, with even current year precious metal coins demanding ridiculous premiums of 25%, 38% and 100%, and later dated precious metal coins demanding even additional premiums over the ones just mentioned. This morning in Asia, when paper silver traded at $12.70, the cheapest price for any lot, smaller than 20 pieces, of current year 1-ounce Silver American Eagles was listed at Apmex at $24.91 per coin, basically a doubling of the paper price. While I realize that Apmex tends to gravitate to the higher end of prices for PM bullion coins, ever site I checked in multiple nations maintained outrageous premiums for physical gold, silver, platinum and palladium coins over their respective spot prices – well outrageous, if you believe paper prices established by bankers are real, as so many comments I have encountered over the past 48-hours seem to indicate. But if you hold physical, you are still golden as far as being positioned for the rest of this year. If bankers smash precious metal prices in futures markets, but it's impossible to buy precious metal coins at any price remotely close to the spot prices established in banker-controlled derivative markets, are the latter prices even real?

 

It's time for every human being on planet Earth tired of these massive, unnatural price divergences that happen in the real physical world and in the paper derivatives banking world to become his or her own bank by selling fiat currencies for physical precious metals. If every person did this, we could break the racket together. Click on the image below to learn more about the current explosive divergence in prices of precious metals happening right now. To always read our articles when first published, don't forget to bookmark our news site here.

 

stunning price divergences between physical precious metal and futures prices