I just got off the phone with a VERY highly regarded, veteran bullion dealer. Here is the gist of what he said…
*The physical market is being flooded by 400 ounce bars, the kind traded on the Comex.
*The markings on the bars suggest it is IMF gold, or similar gold owned by various central banks.
*Much of the gold is of the "Fed melt type," from the gold which was confiscated by the US government in the 1930’s. He went on to say this could be US gold, or Fed melt gold bought by other central banks from the US.
* 1 Kilo bars, which are 32.151 ounces of gold are trading at $50 premiums to the kilo bars, which is more than extraordinary, perhaps unprecedented.
*What we are witnessing in the gold market IS unprecedented in many ways. One of them is that during the price run up in 1980’s, the public was selling gold; now they are buying. Back then, the price on the Comex was HIGHER than the retail prices.
*The gold refineries are going flat out to keep up with demand.
*Regarding the "blanks" the Mint says it doesn’t have to keep up with Gold Eagle, Buffalo coin demand, even normal demand. They are available, but the Mint won’t pay the premiums others will to get the supply. There is NO shortage of blanks. What a farce!
