{"id":3130,"date":"2013-06-13T11:47:05","date_gmt":"2013-06-13T09:47:05","guid":{"rendered":"https:\/\/clusterfamilyoffice.com\/blog\/?p=3130"},"modified":"2013-06-13T11:47:05","modified_gmt":"2013-06-13T09:47:05","slug":"que-le-esta-pasando-al-mercado-de-oro-y-plata","status":"publish","type":"post","link":"https:\/\/clusterfamilyoffice.com\/en\/que-le-esta-pasando-al-mercado-de-oro-y-plata\/","title":{"rendered":"What is happening to the gold and silver market?"},"content":{"rendered":"

\"\"As we mentioned in our previous article, \u00abThe Beast is awakening\u2026<\/a>\u00ab, let\u2019s try to shed some light on the surprising behaviour of the precious metals market. Physical demand for gold and, above all, silver coins and bullion is skyrocketing week by week. And it is highly significant that, for the first time in history, the prices of futures, ETFs and other investment instruments not directly linked to the physical possession of gold and silver, It is currently being sold at a discount<\/strong> regarding actual bullion and coins. If that isn\u2019t mistrust of the metals markets and the policies of printing fiat money, then God help us. And what\u2019s worse, it\u2019s almost impossible to reverse the doping of the quantitative easing<\/em>\u00a0provided by the Fed and the ECB, without derailing the fledgling US recovery and\/or tearing the Eurozone apart into at least two pieces.\u00a0<\/p>\n

More and more people are speaking out against this discrepancy between paper and physical metal, and every day more and more articles are published confirming what we were already told Eric Sprott<\/a> when he was kind enough to welcome us to his offices in Toronto a few weeks ago. Let\u2019s look at a few examples:<\/p>\n

Hebba Investments<\/a>: If physical demand from investors remains at current levels, we believe that the silver market can offer investors a spectacular opportunity, as the supply and demand outlook for silver is so bullish. The fact that all silver mine production in the US and Canada will be used solely to meet domestic demand for government-issued coins (and supply will still fall short by 25 million ounces) should certainly catch investors\u2019 attention.<\/em><\/p>\n

Others point out that investments which multiply wealth and are once-in-a-lifetime opportunities tend to arise precisely when interest in that asset is at its lowest, in true contrarian<\/em>. And that is exactly what happened when the price of those metals plummeted a couple of months ago.\u00a0But we must not forget that metals lack intrinsic value, unlike the shares of a company with a strong and sound business, where the more that business falls, the more irresistible it becomes to buy back more and more shares. In contrast, as far as precious metals are concerned, their value in recent decades has essentially been driven by speculation from those seeking them as a safe haven in the face of the lack of value in electronic money. However, the industrial applications of silver, or the use of gold in jewellery \u2013 for which there is growing demand in the emerging world \u2013 together with the sharp decline in the discovery of new deposits<\/a>, lead some to already see a certain value beyond mere speculation.<\/p>\n

Alec Gimurtu of ResourceInvestor.com<\/a>: I think the significant price movements in gold over the last six weeks or so are a major revelation. They have laid bare the nature of the modern gold market, which has evolved into a \u2018West versus East\u2019 or \u2018paper gold versus real gold\u2019 market. In the West, there are speculators who invest primarily in futures markets. They are more concerned with the short-term direction of gold and other precious metals. The futures exchanges are really nothing more than an opinion poll on the price of gold. It is not really a place where physical metal is bought and sold; rather, the futures market is a place to trade derivatives. In a real sense, it is fractional reserve investing.<\/em><\/p>\n

In mid-April, when gold prices took a heavy hit, over 400 tonnes were sold on the Comex. Within an hour or two, the amount of metal sold exceeded the amount of gold in the Comex warehouse by over 100 tonnes. Comex trading on that day bore no relation to the physical markets. Conversely, the price fall resulting from that sell-off spurred physical demand across the globe, but particularly in price-sensitive markets in Asia.<\/em><\/p>\n

One of the things people focused on throughout all of this was the significant outflow from exchange-traded funds (ETFs) holding physical gold. Since the start of the year, the significant drawdown in ETFs has amounted to around 370 tonnes of gold. Over the same period, I estimate that more than 600 tonnes of gold have been consumed in China alone. And that does not include the huge demand in India or the rest of Asia.<\/strong> It also fails to take into account the surging physical demand for gold in Western markets or the renewed demand from central banks. All things considered, I believe that the price slump in April did nothing but boost global demand for gold.<\/strong><\/em><\/p>\n

Eric Sprott himself insists<\/a> by every means possible, warning that we are on the verge of seeing how demand for physical gold and silver will begin to drive the surge in their respective prices, which are currently still anchored to the financial derivatives market: \u00ab\u2026\u2019\u00bbThe physical market is going to dictate the COMEX price, which is determined by a bunch of people trading on paper \u2026 I would encourage everyone, firstly, to hold on tight, and secondly, if they can, to increase their position.'<\/i><\/p>\n

Only time will tell, but what seems undeniable is that, despite the current low inflation (which has always been a factor favouring rises in the price of gold and silver), the overuse of fiat money should draw attention to metals as a safe haven. And their traditionally speculative nature may be tempered by industrial use and limited supply, particularly in the case of silver, which is also historically undervalued relative to the current price of gold. In fact, Mr Sprott has even greater confidence in the potential of silver than in that of gold. But beware, because today (and who knows if this will ever change), an ETF is no longer the same as a physically backed fund.<\/p>","protected":false},"excerpt":{"rendered":"

Siguiendo con lo que ya adelantamos en nuestro anterior art\u00edculo \u00abLa Bestia se est\u00e1 despertando…\u00ab, tratemos de arrojar algo de luz al sorprendente comportamiento del mercado de los metales preciosos. La demanda f\u00edsica de monedas y lingotes de oro y sobre todo plata se est\u00e1 disparando semana a semana. Y es muy significativo que, por […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,45,42,39,37,48,55],"tags":[],"class_list":["post-3130","post","type-post","status-publish","format-standard","hentry","category-actualidad","category-asesoramiento-deportistas-artistas","category-estrategia","category-crear-mi-propio-family-offices","category-reflexion","category-asesoramiento-patrimonial-multi-family-office-crear-mi-propio-family-offices","category-necesito-un-family-office"],"_links":{"self":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/3130","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/comments?post=3130"}],"version-history":[{"count":0,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/3130\/revisions"}],"wp:attachment":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/media?parent=3130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/categories?post=3130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/tags?post=3130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}