The Gold Squeeze: Is Physical Supply Drying Up?

The London gold market is under pressure. Delivery delays from the Bank of England’s vaults have stretched from the usual 2–3 days to a staggering 4–8 weeks. This isn’t a minor hiccup—it’s a red flag that the world’s largest gold hub is struggling to meet demand.

Over the past two months, 12.2 million ounces of gold have been shipped from London to U.S. COMEX warehouses. Why? Fears of U.S. import tariffs, a rush for physical gold, and a looming supply crunch.

The numbers tell the story: The LBMA reported 279 million ounces of gold stored in London vaults as of December 2024. But only 36 million ounces—the so-called “float”—are available for immediate market use.

Meanwhile, 380 million ounces in outstanding spot contracts remain unfulfilled. The liquidity shortfall is undeniable—there’s not enough freely available gold to meet demand.

On January 29, Bank of England Governor Andrew Bailey faced tough questions from the UK Treasury Committee about whether London’s gold reserves are as liquid as claimed. His evasive responses only fueled speculation that the gold market is in deeper trouble than officials admit.

Gold Spot Prices Are Surging—And Could Go Higher

With supply tightening and delivery delays mounting, gold spot prices are soaring. Buyers are chasing fewer available bars, driving spot prices up. Analysts warn this squeeze is just beginning. With central banks, institutions, and retail investors all fighting for a dwindling supply, gold could climb even higher in the months ahead.

Bottom Line:

The London gold market’s liquidity crisis isn’t a short-term glitch—it’s a warning sign. Gold is being drained from traditional vaults at an alarming rate, and hesitation could mean paying even more later.

With COMEX vaults swelling and London deliveries stalling, the urgency to secure physical gold is growing. Whether this crisis escalates or stabilizes, one thing is clear: demand for real, tangible gold has never been stronger.

The 1 oz ZeroHedge Gold Bar: Real Wealth, No Paper Promises

Gold has always been the ultimate safe haven. But as London’s vaults run dry and delivery delays stretch for weeks, the importance of holding real, physical gold has never been clearer.

The 1 oz ZeroHedge Gold Bar isn’t just an investment—it’s a statement of financial independence. Available exclusively at JM Bullion, ZeroHedge’s preferred bullion dealer, this bar is crafted from .9999 pure gold and features the ZeroHedge logo, symbolizing freedom from manipulated markets.

Each bar is securely sealed in an assay blister pack, guaranteeing authenticity and ensuring that your gold is protected, verified, and truly yours.

With gold flowing out of London at record speed, securing your own supply now could be the smartest move of the year.

Get the 1 oz ZeroHedge Gold Bar Now—before supply tightens even further.