Gold prices yellow have been bearish in recent days and the price slid below $ 1.770. According to Ed Moy, the former director of the US Mint, a global physical gold and silver product price has created a premium on coins and ingots. According to Ed Moy, this premium creates a disconnect between the spot price and the “real” price retail investors have to pay.
Former director of the US Mint: All of the Mint’s have run out of gold! We were very good at …
Ed Moy, who was the director of the US Mint between 2006 and 2011, points to the worldwide mint’s inability to keep up with the physical demand for money and bullion, as one of the reasons for this great deal. Ed Moy adds the following to his comments on the subject:
Not only the US Mint, but other Mint from around the world, Australia’s Perth Mint, Mexico Mint all have run out of gold. They can’t keep it in place, and there are so many times that retailers are having trouble accessing this gold.
Ed Moy: Premiums on gold and silver products can go up to 20% in some places
Ed Moy said premiums on these physical gold and silver products could reach up to 20% in some places. Ed Moy adds the following to his comments on the subject:
If you go to one of the best retailers for gold bullion and have a look at what they are looking for an ONS American Eagle gold bullion coin… You are in trouble, even if the spot price is $ 1.775 now. To find an ONS gold for less than $ 2,000… I saw the price go up to $ 2.100.
Ed Moy: As these short contracts arise, what you see is a gold price increase in yellow.
Ed Moy said that one of the main reasons why spot prices cannot keep up with gold and the premium-adjusted price of silver is that general markets are flooded with bullion derivatives. But Ed Moy points out that it is only a matter of time before short contracts keep the price. Ed Moy adds the following to his comments on the subject:
Now the thing that artificially lowers the price of gold is that there are many institutional investors who do not hold gold. What they have is buying gold derivatives such as futures… Many claim that they will recover and everything will be fine and gold will fall. As these short contracts emerge, what you see is a gold price increase in yellow.