Gold Monitoring Thread £ GBP only

[Martlet]

gold:£ price drop softened by sharp sterling drop last couple of days. 

[goldking]

11 minutes ago, sovereignsteve said:

Down £36 on the week but this only due to the poor performance of the pound. Gold down 144 dollars on the week.

Sounds like you're getting a bit worried about the yellow metal Steve  .  I can help you out by taking those sovs off your hands for £280 a pop so you don't have to worry about it going even lower .

Edited March 13, 2020 by goldking

[sovereignsteve]

Just now, goldking said:

Sounds like you're getting a bit worried about the yellow metal Steve  .  I can help you out by taking those sovs off your hands for £250 a pop so you don't have to worry about it going even lower .

really, how do you get that from what I said. I sneaked in a little HGM order this afternoon after the fall😊

[goldking]

8 minutes ago, sovereignsteve said:

really, how do you get that from what I said. I sneaked in a little HGM order this afternoon after the fall😊

Sounded like you were concerned about the $144  drop. 

[sovereignsteve]

5 minutes ago, goldking said:

Sounded like you were concerned about the $144  drop. 

no not really, strange times but keep buying on the dips😊

[Oldun]

Huge swings to be expected. But negative or very close to zero rates everywhere destroying  pensions etc. Only place to go is the StockMarket or assets.....just a matter of time...that and to remember that value relative to something else in any given time frame  is just as, if not more important, than price

Edited March 13, 2020 by Oldun

[maminzlaten]

On several german dealers' websites and on gold.de you can read that "Due to increased demand there may currently be longer delivery times".  The premium has also rised on all products, even big gold bars (https://www.gold.de/aufgeldtabelle/)

At the same time derivative speculators are dumping gold.... A clear sign of price decoupling...

[paolo]

3 minutes ago, maminzlaten said:

On several german dealers' websites and on gold.de you can read that "Due to increased demand there may currently be longer delivery times".  The premium has also rised on all products, even big gold bars (https://www.gold.de/aufgeldtabelle/)

At the same time derivative speculators are dumping gold.... A clear sign of price decoupling...

same thing i tried to say several post ago yesterday, very few are noticing the decoupling...

[maminzlaten]

5 minutes ago, paolo said:

same thing i tried to say several post ago yesterday, very few are noticing the decoupling...

Uh, oh, I just checked some german forums and they are on it again (panic buying). The austrian dealer that I used recently is nearly empty and only has Austrian Mint bars and coins. I actually want to get wet too, but might not be able to make a bank transfer due to new corona measures...

[paolo]

36 minutes ago, maminzlaten said:

Uh, oh, I just checked some german forums and they are on it again (panic buying). The austrian dealer that I used recently is nearly empty and only has Austrian Mint bars and coins. I actually want to get wet too, but might not be able to make a bank transfer due to new corona measures...

Yes and the premium went up today too, i Guess even It stop price Is on pause, the delealers are increasing the premium also on saturday due to the very High demand..many coins are out of stock everywhere..check what i wrote yesterday

[Foster88]

9 hours ago, maminzlaten said:

Uh, oh, I just checked some german forums and they are on it again (panic buying). The austrian dealer that I used recently is nearly empty and only has Austrian Mint bars and coins. I actually want to get wet too, but might not be able to make a bank transfer due to new corona measures...

I found this quite interesting on the German gold market:

https://news.goldcore.com/us/gold-blog/german-investors-now-worlds-largest-gold-buyers/

[sixgun]

On 14/03/2020 at 16:18, paolo said:

same thing i tried to say several post ago yesterday, very few are noticing the decoupling...

Even people here are not fully awake - some are sound asleep. The physical markets are on fire with buyers - so premiums will be strong. This is why there are banners saying that deliveries will be delayed - this is the retail market but the wholesale is equally busy. That demand is high takes us nearer and nearer the reset. Decoupling tells you the reset is getting nearer - the usual suspects cannot control the physical markets - the last time they really tried was almost 20 years ago. When the West has no more gold to sell to China then we will see the reset - China will just dictate the price and as China has huge amounts of gold, it is in her interests to make that price as high as possible. The physical markets will eventually overrun the paper markets. One of the reasons suspected for falling paper prices is paper is being dumped for physical. 

Edited March 15, 2020 by sixgun

[Roy]

Of interest:

https://www.bullionstar.com/blogs/bullionstar/gold-shortages-price-of-physical-gold-decouples-from-paper-gold/

 

[Bumble]

GoldMoney and Bullion Vault are both still offering fairly tight spreads with less than 1% over spot for buyers.

[5huggy]

5 hours ago, Roy said:

Of interest:

https://www.bullionstar.com/blogs/bullionstar/gold-shortages-price-of-physical-gold-decouples-from-paper-gold/

 

This supports your post @Roy

COMEX Gold EFP Use Surges FULL article and in depth analysis here - -> > http://news.goldseek.com/GoldSeek/1583927959.php Edited March 15, 2020 by 5huggy

[richatthecroft]

6 hours ago, Roy said:

Of interest:

https://www.bullionstar.com/blogs/bullionstar/gold-shortages-price-of-physical-gold-decouples-from-paper-gold/

 

Very interesting cheers @Roy

[goldking]

7 hours ago, Roy said:

Of interest:

https://www.bullionstar.com/blogs/bullionstar/gold-shortages-price-of-physical-gold-decouples-from-paper-gold/

It makes for a nice sound bite but the reality is that the prices and premiums for physical are still the same as they are for paper.  When I see everyone buying physical 1 ouncers for £1300 when spot is £1246 come and wake me up.  Until then nothing has changed, but it makes for a nice PR piece to drum up a bunch of extra business.

[Cornishfarmer]

Are any companies that are short of physical gold offering a higher buying price?    @LawrenceChard have you known this to happen? Or will it happen?

[paolo]

1 hour ago, goldking said:

It makes for a nice sound bite but the reality is that the prices and premiums for physical are still the same as they are for paper.  When I see everyone buying physical 1 ouncers for £1300 when spot is £1246 come and wake me up.  Until then nothing has changed, but it makes for a nice PR piece to drum up a bunch of extra business.

I did not see spread increasing for Gold have to Say, but for silver yes and very much , besides many out of stock items. I think the phisical silver Is the most wanted right now, Gold did not lose as much ad silver, beside Gold has still very High price while silver Is still very cheap, so i can see why the phisical silver Is much more under pressure than Gold.

[LawrenceChard]

3 hours ago, Cornishfarmer said:

Are any companies that are short of physical gold offering a higher buying price?    @LawrenceChard have you known this to happen? Or will it happen?

Before attempting an answer, I looked back at the thread to find what lay behind the question.

I used to read some of the newsletters cited, and still do very occasionally, but my conclusion was that most of the articles were written by people with a vested interest, trying to lobby the market their way, or hype people into buying.

The GoldSeek analysis of the Comex market is possibly sound, but I did not read it right through. Remember though that for every Comex long trade, there is a matching short trade.

Also, the Comex market is not a physical market, except that in theory, delivery can be made or taken. I have never looked at the stats, but I guess that 99.99% of Comex trades are paper trades (or electronic), not physical.

I cannot speak for other dealers in the physical market, but...

Our aim is to balance our book stocks as soon as possible, ideally to keep them all in balance. In practice, this rarely happens on an intra-day basis. Typically someone will sell us 100 Krugers, somebody else will buy 500 sovereigns. These two transactions nearly balance each other (100:400 would be closer), but usually leaves us trying to sell Krugers and buy sovereigns. The next day, the opposite may be true.

Being semantic, it also depends what you mean or understand by "are short". This could mean having a stock level of zero, or below a preferred threshold. It could mean having a negative stock (owing stock). While this can be a common occurrence, it usually only persists for relatively short period, possibly as short as a few minutes, possibly running into a few hours or days. (Three occurences of "short" in this paragraph, with two different meanings).

Anyone running a "short gold" position deliberately is really a speculator rather then a dealer. It is also quite difficult to be short in physical gold. Some gold mining companies are, or used to be, financed by a short gold position bcause their working capital was often borrowed against their future production, secured by the gold still in the ground waiting to be extracted.

If you read the post I made recently about "Liquidity", you will see that the only time our company was ever "short" was around the 2008 international crises, when we were short mainly of Krugerrands and sovereigns, but with a similar "long" position in kilo gold coins (66 of them), some bars, and also 100,000 ounces of silver, mainly in the form of kilo coins. This was our physical hedge, although even without them, our overall gold stock was always "long" or positive throughout the whole period.

I hope this helped.

 

 

[sovereignsteve]

26 minutes ago, LawrenceChard said:

what you mean or understand by "are short". This could mean having a stock level of zero, or below a preferred threshold

I think the question was exactly this or close to this situation. In a scenario where you have customers clammering to buy gold and you don't have the stock and are unable to source stock. Would you increase your buying prices and premumably your selling prices too, in order to satisfy demand?

 

[LawrenceChard]

3 minutes ago, sovereignsteve said:

I think the question was exactly this or close to this situation. In a scenario where you have customers clammering to buy gold and you don't have the stock and are unable to source stock. Would you increase your buying prices and premumably your selling prices too, in order to satisfy demand?

 

Yes, adjusting buy / sell spread is a normal part of daily trading activity, but usually in very small increments / decrements, often not sizeable enough to be easily noticed or to affect most small or medium transactions.

As I mentioned in my long "Liquidity" post, in the 2008 crises, we took an early decision to maintain near-normal buy / sell spreads and premiums, whereas almost everybody else in the world adjusted theirs dramatically.

I am still not sure who was right, and who was wrong.  What I do know is the people who bought from us got good, fair deals, and received their goods. Most people who bought elsewhere paid what I regarded as rip-off prices. Would you pay 27% premium for a Krugerrand on ebay?

[5huggy]

15 minutes ago, LawrenceChard said:

Would you pay 27% premium for a Krugerrand on ebay?

[Minimalist]

QE pumping debt into the banking system - gives that debt to the Banks - these toxic loans then go to industrial projects: infrastructure, planes, ships and others etc (we already knows this). But that will create demand for all commodities including gold, this strengthens the dollar (a bit) and gives the global fiat/confetti a sugar high. Overcapacity then sets in due to the amount of debt/fiat that is flooded the market - defaults happen throughout the market - Fed then lowers interest rates etc. But, this time it isnt majority overcapacity, its the collapse of supply chains/contracts due to the debt. The products are dependent on all commodities, then it goes through intermediate produces - component parts - missing one commodity cant produce the final product (we must all know this). So the fed in this instance will then again resort to more credit/debt which does nothing and will explode the global market (starting with China). Right now they know these banks through to the producers cant cover the debt so they are simply printing more fiat to cover expenses and flooding more. Trump has even called for the US government to lower taxes LOL! The reset is going to come on Chinas terms - Anyone who believes otherwise needs psychological treatment. 

Edited March 15, 2020 by Minimalist

[Minimalist]

31 minutes ago, Minimalist said:

QE pumping debt into the banking system - gives that debt to the Banks - these toxic loans then go to industrial projects: infrastructure, planes, ships and others etc (we already knows this). But that will create demand for all commodities including gold, this strengthens the dollar (a bit) and gives the global fiat/confetti a sugar high. Overcapacity then sets in due to the amount of debt/fiat that is flooded the market - defaults happen throughout the market - Fed then lowers interest rates etc. But, this time it isnt majority overcapacity, its the collapse of supply chains/contracts due to the debt. The products are dependent on all commodities, then it goes through intermediate produces - component parts - missing one commodity cant produce the final product (we must all know this). So the fed in this instance will then again resort to more credit/debt which does nothing and will explode the global market (starting with China). Right now they know these banks through to the producers cant cover the debt so they are simply printing more fiat to cover expenses and flooding more. Trump has even called for the US government to lower taxes LOL! The reset is going to come on Chinas terms - Anyone who believes otherwise needs psychological treatment. 

Banks; Destroying the economy and buy it all back at bargain prices: Largest transfer of wealth in history.