Significant Physical to Paper Prices Now for Gold and Silver
In the last week or two, there has been a significant decoupling of actual physical gold and silver prices paid versus official comex prices (what people see on the screen for gold and silver prices) for these precious metals. If you want to purchase an ounce of silver, the official listed price is about $14.50 per ounce, ($U.S) but to actually buy it, you will be paying $25 U.S per ounce, and for gold, the physical price is a good $200 U.S more per ounce than what is listed. This has caused the COMEX trading platform for gold and silver to significantly increase the maintenance margins for these metals. Since more and more people are demanding and exercising their right for physical delivery, of these precious metals, this has caused a physical shortage to occur, and thus a huge gap between paper prices and physical prices of these commodities. As well, according to Keith Nemeier, the CEO of Majestic Silver, about 25% of the current silver production is currently off line because of the Corona Virus. Similar numbers are likely for gold. What impact would any of this have on the price of ORX shares and the junior miners in particular? Well, the current valuations up until now for in ground gold have practically been next to zero for companies such as ORX, and ma of the juniors in particular, but as more people start to value gold in a better way, it should soon start to value junior gold miners in a better way. Many of the top gold mining producers are now stocked with more and more cash, and have been buying back shares as well, however their supplies of the in ground metal are diminishing each day, and there has been hardly any drilling taking place for the past decade because of the low manipulated price of gold up until lately. I would recommend googling a few stories. "The Comex Issues and Stops Reports Expose Conditions behind Physical Gold Supply Problems". by Reporter Mallamalla, and "There's no Gold Comex Report Exposes Conditions Behind Physical " by Zero Hedge, dated March 29th 2020.