Thursday, May 9, 2013

Extraordinary Delays For Physical Gold & Silver

"It is also important to point out, Eric, that the physical market for precious metals also has two distinct segments. These need to be looked at separately because to a certain extent they are driven by different factors. One segment is reasonably visible. This is the retail market for coins and small bars, those weighing up to a kilo, which is about 32 troy ounces.

The shortages of these products that exist at the moment are very apparent with many dealers, mints and refiners reporting that they have no stock to sell because of demand. There are also exceptionally high premiums reported for those transactions that are being completed.

These shortages are the result of a fabrication bottleneck. In other words, the surge by retail buyers pretty much everywhere in the world has resulted in a demand that cannot be filled. They have opened their pocketbooks to buy coins and small bars on this last take down in prices. The fabricators who make these coins and small bars just do not have the manufacturing capacity to ramp up production quickly enough to supply the product needed to meet this heightened demand."

- James Turk via a recent King World News interview, read the full interview here: