Physical Gold - Paper Gold has MASSIVE Divergence

The problem items are coins, not 100 oz bars or even kilo bars.

Kilo bars are available for about $27560 from bulliondirect I see, which translates to $857/oz or about $16 over spot. The cheapest 1 oz bar is $880/oz or $39 over spot. If you want any coin, its $899 cheapest, or $48 over spot. These same coins were $5 over spot a few months ago for as many as you wanted.

John Hathaway said the other day that he was offered over spot for Toqueville's 100,000 oz in the Comex warehouse from someone that wanted it to send to a mint to make coins out of because the mint was having problems finding bars. If that's true, I expect a higher number of trades will end in delivery than normal.
 
Quote from Cutten:

There's 8.6 million ounces in Comex warehouses at the moment.

No offence, but an ET poster is not really a credible source. Got any links or info showing that there is no physical gold around? One would expect if there were such a shortage, then front month gold futures would trade at a big premium, whereas in fact they are at a discount. Spot prices are not massively above futures.

E.g. Oct Comex gold is 840 offered right now. Where is this $60-80 premium you are talking about?
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He is talking about bullion coins, not Comex stocks, although even Comex deliverable bars are trading at record premiums above spot.

It is no joke, really amazing. 2 years ago I was regularly paying $4-5 over spot for Krugerrands, now $50 over is a deal. No one is selling.

Yes, one could just take delivery on Comex, but not many individual investors want to take $80K in gold in one clip.
 
Quote from hofficita:

He is talking about bullion coins, not Comex stocks, although even Comex deliverable bars are trading at record premiums above spot.

It is no joke, really amazing. 2 years ago I was regularly paying $4-5 over spot for Krugerrands, now $50 over is a deal. No one is selling.

Yes, one could just take delivery on Comex, but not many individual investors want to take $80K in gold in one clip.
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Why not take delivery and then put it up for sale on ebay? ;)
 
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