By Ciga Ken
It is quite apparent that physical gold coins are very difficult to get anywhere in the US and in many parts of the world. I have called a few local shops to test for availability and there is none. The best alternative I got was a large premium over spot on a bullion gold ounce, to be paid to the dealer up front and then a long wait time for delivery. The days of walking into a shop and purchasing a coin or two are gone, and we don’t know if or when those days will return.
Internet coin dealers are in the same boat, not much available and high premiums and wait times for all types of bullion and numismatics. It seems that the logical extension of this phenomena is spreading to the Comex in the US. Ultimately there will be a showdown for gold in lieu of the intense worldwide demand for physical. Nothing can take the place of the real thing.
Gold ETFs by extension may have difficulty in getting physical gold to back their deposits, they may limit new investors or change their rules to hold less gold per outstanding share. Gold ETFs may experience a period of intense scrutiny about what they truly own, which may cause investors to shy away from them as gold investment vehicles.
When push comes to shove and gold finally makes its move up and through the old highs from this year, it will be understood by everyone that gold is in a real bull market. It will be easily understood by the man in the street as he will see the financial upheaval and wealth destruction talked about here on JSMineset. The dollar’s buying power will plummet and the small investor will realize that gold is what he will need. Inflation will be unable to hide any longer.
And if the coin shops are empty and there is no real way to get gold in hand, there will be only one quality substitute, Gold Stocks and Gold Mutual Funds, and possibly not Gold ETFs. Senior, Mid-Tier, and Junior gold stocks will skyrocket as there will be no real physical way for the average investor to participate in the Gold Bull Market that is coming. The watertight doors are closing: gold coins, small gold bars– these door are now shut, (large bars next?), (ETF’s next?).
Quality gold stocks are selling at 2003 gold prices, some at 2001 giveaway prices. Even though the ship is listing, there are still lifeboats available on this ship! Soon these boats will be lowered away as the last vehicles of gold financial survival, and even then one must take the precautions set out here on JSMineset to distance yourself from financial entities that are between oneself and one’s assets.
In my opinion, time seems short and the band on deck is playing a happy tune.
