Bullion Shortage and Spot Prices Tell Two Different Gold Stories

Graph courtesy www.kitco.com/

Published on 13-10-2008 Source: The Market Oracle – Gerard_Jackson
Having blogged earlier on a physical silver shortage and the drying up of gold bullion purchases, recent events in the precious metals markets justify an update that again arrives at the conclusion that last Friday’s silver and gold price plunge on COMEX has pretty little to do with the actual physical investment demand for gold and silver. Tim Iacono had a good post with the headline “Gold prices getting fishier and fishier,” that does away with the myth that the US mint faces unprecedented demand. I stumbled across several more reports that show the ongoing dichotomy between official spot or futures prices and premiums actually paid by investors, if they can get their coins or bars at all.

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U.S. mint suspends gold coin sales; futures price is a fiction

Photo courtesy Rocky Mountain Coin, http://www.rmcoin.com/

12:25a ET Friday, August 15, 2008 — The U.S. Mint has suspended sales of American eagle gold coins and is refusing orders from dealers, two coin and bullion dealers confirmed Thursday.

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U.S. mint, gold, coin, sales, futures, price, fiction

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