by David Brady
The only reason I follow paper prices for Gold and Silver is that they provide valuable insight into how big the premiums are for the physical metals. The combination of higher paper prices and higher premiums means an ultimately higher physical price. This is what we are seeing thanks to the persistent scarcity of Gold and Silver and a nice rally in both Gold and Silver paper futures and ETFs recently.
Despite the partial re-opening of the Swiss refineries, we’re still seeing little to no inventory and premiums are rising again. Gold Eagle coins are available but in limited quantities and are selling at premiums of ~10% or more. Gold bars of 10 ounces or more are near non-existent. There are more coins than bars available in Silver too, but bars tend to be a lot cheaper in price. That said, the lowest price I could find for a 10 ounce bar at one of the major dealers was $20.60, >30% over spot. The mere fact that all of these sites now have a tab saying “In Stock” Gold or Silver says it all, imho. The fact that there is so little available on it, even more so. One major dealer shows just 62 items in stock for Gold compared to 1506 out of stock.