The Reality of Available Gold & Silver Bullion

Jon Gold, Market Commentary, Precious Metals, Silver

This article was written by Dickson Buchanan, SchiffGoldPRECIOUS METALS Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
The month of July has seen the most intense demand for physical gold and silver since April of 2013, setting numerous records for the year. On the heels of the spectacular drop in spot prices, buyers of physical metal have come out in droves. In fact, available supply is hardly able to keep up with the demand for immediate delivery of metals.
This betrays a fundamental reality about the market for physical gold andSILVER BULLION that many investors – even regular buyers of bullion – are not aware of. There simply is not much supply available at any given time. In other words, gold and silver products spend very little time sitting on the shelf waiting to get bought, making inventory very tight. As such, in times of intense demand, the entire available supply can be bought up in a matter of weeks, or even days. This results in higher product premiums and extended shipping times.
This is exactly where the market is for physical metals is right now. Consider what has happened in just the last couple of weeks.

This post was published at Schiffgold on JULY 30, 2015.