Tuesday, July 5, 2016

A storm is a brewin…Bullion banks “have been panicking” and advising that soon, they may no longer be able to quote prices on large gold bar orders

This response is previously unheard of and indicates the increasing illiquidity in the large gold bar market due to a recent surge in HNW, UHNW and institutional (wealth managers, hedge funds, banks etc) demand across the world coupled with already robust central bank demand.
The increasingly illiquid physical gold market where supply cannot keep up with demand underlines the importance of owning physical bullion coins and bars – either in your possession or having direct legal title to your individual coins and bars. Bullion should be owned in your name or your company’s name and be stored directly in the safest vaults in the safest jurisdictions in the world – outside the financial, banking system.
http://www.goldcore.com/us/gold-blog/gold-lower-despite-panic-due-to-supply-issues-in-inter-bank-gold-market/
Bullion Banks Are Starting to Lose Control of Silver

19.672 +1.049 +5.63%

http://www.investing.com/commodities/silver
50 x 1 Gram Valcambi Suisse 999.9 Fine Combi Gold Bar
https://www.amagimetals.com/gold/bars/50-gram-valcambi-gold-bar#

The market is subject to absolutely “unprecedented conditions” and a degree of illiquidity and “supply issues” not seen even in the immediate aftermath of September 11th, Lehman Brothers and the height of the Eurozone crisis.
Refineries and mints are being advised that bullion banks may take the unprecedented step of “suspending the trading of physical gold.” Premiums have risen on larger orders creating the situation where spreads are higher on larger orders. An example of this is that a 1,000 ounce order worth $12.66 million at current prices is trading at a premium of $0.33 per ounce over a smaller order of 500 ounces.
There is also warnings that stop loss orders above 5,000 ounces may not be filled at agreed prices and could be filled at much lower prices. In addition, a number of large liquidity providers in the gold market, such as Intl FC Stone, have increased margins.

AC

No comments:

Post a Comment