Gold Markets Again Haunted By Signs Of Paper Versus Physical Dislocation

Comex was just rescued with gold from JP Morgan...


Silver Doctors Editor’s Note: Today’s article references the most recent disconnect in the “markets” that began in late March, which we began covering here:

Have you been following the various disconnects between the paper and physical markets, especially in silver where the paper price has plunged while the cost for one ounce of physical silver has soared?

Catch-up on the recent paper versus physical market disconnect news here.


by Chris Powell of the Gold Anti-Trust Action Committee (GATA)

Comex was just rescued with gold from JPMorgan.

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By Justina Vasquez and Elena Mazneva
Bloomberg News
Tuesday, April 7, 2020

Gold prices that usually move in lockstep are diverging again, reviving fears of impending turmoil just a couple of weeks after the last bout of panic.

An ounce of bullion sold in New York was as much as $50 more expensive than in London on Tuesday, compared with just a few dollars in normal times. The price spread is seen as a measure of the cost to swap futures contracts into gold in its physical form.

A similar discrepancy occurred about two weeks ago, as the coronavirus crisis disrupted supply chains and caused flight cancellations, leading to worries over a gold-bar shortage in New York just before April futures contracts became deliverable.

In the end, banks including JPMorgan Chase & Co. made more gold available and exchange inventories swelled to levels that were more than enough to cover any demands for delivery.

The resumption in price divergence shows, however, that investors may be still worried about supply disruptions even though delivery for the current most-active futures contract — June — isn’t due any time soon. …

… For the remainder of the report:…

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Toast to a free gold market
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Support GATA by purchasing
Stuart Englert’s “Rigged”

“Rigged” is a concise explanation of government’s currency market rigging policy and extensively credits GATA’s work exposing it. Ten percent of sales proceeds are contributed to GATA. Buy a copy for $14.99 through Amazon —…

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