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Physical Gold and Silver shortage

pmbug

pmbug

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Joined
Dec 20, 2007
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...
Now, a spike in so-called lease rates in London this week signals that an increasingly frenetic global hunt for bullion is under way as major dealers seek to shift metal to the US before any tariffs are imposed.

Lease rates reflect the return that holders of bullion in London’s vaults can get by loaning their metal out to other buyers on a short-term basis. Normally, the returns on offer sit close to zero, but this week they’ve surged to historic levels, with profits on one-month lease rates exceeding 3.5% on an annualized basis.

That’s the highest level since at least 2002, and it signals surging demand for metal in London’s vaults. There have been similarly extreme moves in the silver market, and some analysts and traders warn that there may not be enough freely available metal to meet dealers’ needs.
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https://www.bloomberg.com/news/arti...re-fueling-a-chaotic-hunt-for-gold-in-london/
 
There is never a "shortage", there are just entitled whiners who don't want to pay higher prices.
 
Reuters report (no paywall):
London bullion market players are racing to borrow gold from central banks, which store bullion in London, following a surge in gold deliveries to the United States on speculation of potential import tariffs there, two sources familiar with the matter said.

The minimum waiting time to load gold out of the Bank of England, which stores gold for central banks, has reached four weeks, one of the sources said. In normal times, the release time is a few days or a week.

The BoE declined to comment when asked about the queue.
...
"The key with the BoE is that they are not a commercial vault so not prepared to handle the onslaught of gold borrowing banks are requesting from the central banks," said Robert Gottlieb, an industry expert and former head of precious metals at Koch Supply and Trading.

The size of so-called Loco London free float, the amount of gold readily available to the London OTC market stored in London, has fallen after the jump in supplies to New York.
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More:
https://www.reuters.com/world/uk/lo...-bank-gold-after-big-shipments-us-2025-01-29/
 
Mexico and Canada tariffs confirmed for Saturday. Metals markets about to get more interesting...
 
Going to need to get to 2824 next week for a new all time mark. Im expecting it
 
Last edited:
China will resume buying next week (end of Chinese New Year holiday).
 
ClaytonB said:
There is never a "shortage"...
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No? Seems to me that depends on whether or not you're a precious metals "custodian" which has been selling people paper saying they own gold and/or silver which doesn't exist. An entity such as that could well suffer a shortage even if the streets are paved with the stuff.
 
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