ERIN Digital & Phone net Tuesday April 30, 2024; Go Here for Current SOI
#14 Could the paper gold Ponzi scheme be on the verge of crumbling? There are reports that there is now a 100 day delay for gold owners to take physical delivery of their gold from some warehouses owned by the London Metal Exchange... We?re told that bullion-buyers in London must now wait more than 100 days to take delivery of the bullion for which they have already paid. The comedic drones at Bloomberg, and officials of the London Metal Exchange itself would have us believe this is due to ?warehouse queues.? While precious metals bulls undoubtedly appreciate the imagery implied of a 100-day line-up of armored cars waiting to load their bullion ? in the middle of this ?bear market? ? the implication is fallacious. In an era of just-in-time inventories; the notion that there can be a 100-day backlog to load bullion into armored cars with the metal already sitting in the warehouse is ludicrous. Clearly what the LME is really reporting here is a greater-than-three-month delay to refine the gold (or silver) being purchased here ? and then ship it to their warehouse. In other words, the ?bullion? which traders believe they are purchasing today is in fact merely ore which hasn?t even been dug out of the ground yet.
That's my #1 reason for a SHTF scenario - but what the hell do I know? I just have a degree in economics.
