The Gold Vaults Are Running Low, Here’s What Happens When They Run Out

Wednesday, November 25, 2015
By Paul Martin

By Joshua Krause
ActivistPost.com
NOVEMBER 25, 2015

Someday in the near future, the process of buying a precious metal asset is going to look very different than it does today. Right now you can go online or step into a store and buy an ounce of gold or silver, and its price tag will reflect the price you see on the stock market. However, this may not be the case in the years ahead. There will be something fundamentally different about this transaction in the future.

To understand what I’m talking about, you first have to look around and pay attention to the current events that are spelling it out. What these stories are saying, is that there is no longer any relationship between the price of physical gold and silver, and the price you see on the stock market. The value of these paper assets just keep falling month after month, and yet physical gold and silver sales keep breaking records.

On the surface it looks like the law of supply and demand has broken, when in reality, it’s working just fine. It makes sense once you realize that the relationship between these paper and physical assets is what’s really broken. This surge in demand that we’re seeing, is simply the result of people taking advantage of an artificially lowered price.

Take a look at what’s going on the silver market. The annual sale of silver eagles is about to break another record, even though prices haven’t been this low in 5 years. Meanwhile, demand for physical gold more than doubled in the United States last quarter, and increased by 33% globally. The media is acting like these stories are completely normal, as if it’s perfectly reasonable for demand to increase while prices fall. While it’s normal to sell more of any product when the price is set lower, it’s not normal for a slightly lower price to cause sales to double.

The Rest…HERE

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