Jurg Kiener of Swiss Asia Capital talks about paper precious metals market default and gold price spike

October 7, 2008 by · Leave a Comment
Filed under: Videos 

This was a good video on CNBC about the Comex futures market and the possibility of some defaults on precious metals futures contracts because of increase physical demand of gold bullion, especially in the retail weights of 1 ounce gold coins and bars.  Jurg Kiener of Swiss Asia Capital said if this happens, we should see the spot price of gold to double in very short order, suggesting it would be in under 12 months citing how small the market is compared to other commodities like oil.  

Personally, I have talked to a bunch of bullion dealers and they have told me about the huge demand they are seeing and that they are to the point where they are starting to turn certain orders away because they are starting to lack confidence that the other bullion dealers and clearinghouses will be able to deliver as promised.  Watch the video and leave your comments below.

Video Link:

Jurg Kiener of Swiss Asia Capital talks about Paper Gold and Comex

U.S. Mint suspends sales American Eagle gold coins

August 21, 2008 by · Leave a Comment
Filed under: Economic News 

This is an interesting development with what happened last week. Last week we saw a major disconnect in the precious metals markets. The price dropped by double digits in one day but this is the paper market dropping with investors on margin and when the price drops so quickly you can see “margin-calls” that will create forced selling. I called some bullion dealers to ask them if they were see people running in too dump their physical metals in conjunction.

To my surprise two of the largest dealers told me that not only is no one selling their metals but the demand has never been higher and there was a 4-8 week delay on delivery and because they see to market disconnecting that there was a possibility that if the market continues to operate like this that they would suspend sales as well because of a growing lack of confidence in other dealers to be able to make their deliveries as well. What does this announcement mean with the economy heading south and bailouts happening across the board?

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