Silver And Gold Will Increasingly Be Squeezed As Relentless Physical Demand Ends Leveraged Promissory Note Pricing

With an estimated 400M oz. of gold cash/spot contracts and 5B oz. of silver cash/spot contracts standing in the London market and with the ‘free float’ (actual metal bars available to market) standing at a tiny fraction of this level, if the current run for delivery of physical metal continues it will be terminal for the decades-long price setting fraud operated by the Bank of England in The City of London’s market - the world’s largest gold and silver trading cash market.

The fact that Reuters and the Financial Times are claiming that we are seeing market dysfunction merely because of a slow-down in the lease market logistics is interesting. London traders scrambling to lease sufficient metal to meet demands for metal delivery against largely unbacked cash/spot gold and silver notes is telling - the surging lease rates tells us that not only are logistics slowed-down but there is insufficient metal available to be leased - they don’t have the available metal.

Best regards,

David Jensen from Jensen's Economic, Precious Metals, & Markets Newsletter