halalmoney on Nostr: “The market has sent a signal regarding the lack of liquid physical gold available ...
“The market has sent a signal regarding the lack of liquid physical gold available to settle delivery demand in the London market.
One solution is to approach one of the world’s gold refineries to acquire gold while quietly selling the London cash contracts over time - simply leaving the paper to circulate. The 7 major Western refineries have refining capacity of 160M oz. per year, however the majority of their forward gold production is spoken-for well beforehand.
If this draw of London gold into the US and then other countries continues over time, the market will be making clear that it is shutting-down the leveraged London cash gold (and silver) markets.
A further confirmatory market signal over time would be a steady erosion of the value of a London spot/cash gold contract in comparison to other markets such as the NY price.”
https://jensendavid.substack.com/p/shutting-down-the-london-gold-market
One solution is to approach one of the world’s gold refineries to acquire gold while quietly selling the London cash contracts over time - simply leaving the paper to circulate. The 7 major Western refineries have refining capacity of 160M oz. per year, however the majority of their forward gold production is spoken-for well beforehand.
If this draw of London gold into the US and then other countries continues over time, the market will be making clear that it is shutting-down the leveraged London cash gold (and silver) markets.
A further confirmatory market signal over time would be a steady erosion of the value of a London spot/cash gold contract in comparison to other markets such as the NY price.”
https://jensendavid.substack.com/p/shutting-down-the-london-gold-market