Physical Gold and Silver Supplies Said to be Tighter than Reports Indicate

December 8, 2010

Patrick A. Heller has a good article over on Coin Update News about the status of gold and silver supplies.

In essence, the article makes a convincing case that the market for physical gold and silver is tight. He also explains that the gold market is in a rare condition referred to as “backwardation” in which physical spot gold is priced higher than gold futures contracts out as long as 6 months. This is a sure sign of a tightness in supply and is very bullish.

In fact, such a market condition could result in a sudden and sharp rise in prices…