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Soon Supply Squeeze Of Physical Gold And Silver

|Includes: GLD, iShares Silver Trust ETF (SLV)

Price of silver and gold are at new records – gold price at all time new high while silver price at highest in last 30 years.

Nothing else can explain such prices as a huge increase in silver and gold demand.

I’m not talking about speculators using paper derivatives to drive price up – since this can be manipulated and suppressed by banks issuing up to 100x more derivatives than speculators are buying them.

I am talking about…

huge demand for PHYSICAL silver and gold!

And best way of seeing short squeeze in delivering physical silver and gold is by:

- price that dealers charge to sell or buyback physical

- spread difference between bid and ask price that this same dealers have to pay to get physical gold and silver bullion bars and coins from their suppliers.

I’ve already reported that dealers increased their buyback price that they are paying to their clients (for silver rounds from $0.8 below spot to NOW spot price or around 4% higher buyback price).

And today I’ve read interesting info from one dealer that his suppliers changed spread between bid and ask price for physical silver from 0 or 4 cents to NOW 8 cents!

That’s a 100% higher spread now for a dealer to get physical silver from a supplier and suppliers are the ones getting physical directly from mints.

This means mints are either running out of physical silver and gold to produce bullion bars and coins and/or are running out of silver and gold blanks from which bullion coins are made.

But even for this blanks to be made, you need physical.

No matter the price of paper silver derivatives, demand for physical silver and gold is rapidly increasing!

Expect in future to pay more to get physical gold and silver, despite spot price going maybe even lower – simply cause premiums will increase cause physical will be so hard to get.

Same thing was happening in 2008 when price of silver went from $20 to $9 yet you couldn’t buy physical silver below $16 due to premiums (cause there was simply no physical silver available at such suppressed paper price).

Disclosure: Long the physical.