What’s the real price of gold?

Daily Reckoning/James Rickards

Repost from 3-15-2021

photo of gold American Eagles in stacks with $100 bills in background“I’m looking at a trading screen right now, and it displays a price of $1,733.80 per ounce. That price may change a bit by the time you read this, but it would only take a fresh glance at the screen to get the new price. Case closed. … If only things were that simple. They’re not. In fact, establishing prices for gold and silver is far more difficult than it sounds. Further, the different prices on offer and the reasons for those differences can tell us a lot about what’s going on right now in precious metals markets.”

USAGOLD note:  At times like these, when demand for physical metal is running through the roof and the price remains ring-fenced, investors wonder why the price isn’t flying wingman to demand instead. Ricards explains why in this analysis which will be of particular interest to newcomers to the gold and silver markets. “The cost of owning bullion coins or bars you can hold in your hand,” he says, “is materially higher than the official ‘prices’ you see listed on the exchanges. That tells you that actual bullion is considerably more scarce than paper bullion.”

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