The dichotomy between paper and physical precious metals markets
Repost from 3-12-2021
“All of these factors stress individual borrowers and banks. Less money is coming into the system, so the whole economy is starting to seize up, which will trigger a rise in precious metals prices as a safe haven. Kient argues as we have highlighted in earlier articles on Seeking Alpha that there are already shortages in silver and gold, which will only worsen with time. He, like us, also highlighted the divergence between the paper and physical markets. All of these factors suggest strongly that gold and silver prices will rise significantly. We strongly recommend that you go long gold and silver.”
USAGOLD note: Equity Management tells traders to get aggressive …… We add a caution that this is one firm’s recommendation. There are others who are just as convinced that we should prepare for more downside in precious metals prices. Our primary purpose in posting a link to this article is its exploration of the discontinuity between the paper and physical precious metals markets, an inconsistency we point to consistently here at USAGOLD.