Loading ...
Tuesday morning …this has been the most whacked out day in precious metals history. I woke up to gold $117 higher. Not long later, it was up $20 in the spot bullion sites. But the futures were still $80 higher.
Some explanations of what is going on…
Wholesale bid/ask spot price spreads super wide this morning
Dear Bill and Chris,
If others had not already told you, here is what I just posted on Liberty’s Facebook page:
Be very careful of what is being quoted for spot prices today! One of the largest US bullion wholesalers is quoting a $70 difference between their bid gold spot price and their ask gold spot price. The same company has a 25 cent spread on their silver bid/ask spot prices, a $15 spread on platinum, and a $180 spread on palladium bid/ask..
In checking various spot price reporting services right now, I saw the “gold spot” as being anywhere from $1,603 to $1,678. Silver was almost as crazy with prices from $14.03 to $14.33.
The wide spreads indicate a developing shortage of physical product to meet demand. So, assume that if you want to acquire physical bullion-priced precious metals you will have pricing figured on the basis of the wholesale ask price levels.
There is a substantial risk of far higher gold and silver prices in the immediate future along with a much higher risk that the public may simply be unable to purchase physical precious metals at all.
Why is this happening?
The top reason is the announcement yesterday that the US government and Federal Reserve will tremendously increase the supply of the US dollar. This is happening at the same time that production of goods and services worldwide is declining. When you have more dollars chasing fewer goods and services, prices inevitably rise.
In other words, the value of the US dollar will drop significantly in the near future, as guaranteed by the US government and Federal Reserve. Smart people are looking to acquire assets that will protect them against the falling value of the US dollar–meaning gold and silver.
We are definitely living in “interesting times.”
Patrick A. Heller
Communications Officer
Liberty Coin Service
path@libertycoinservice.com email…