Famine Stalks The West As Gold's Price Resets Higher

Currency Failure Was The Guaranteed Outcome At The Initiation Of London Gold And Silver Market Rig

“… “The demand for physical gold in the US has increased dramatically,” says Christoph Wild, President of the Swiss Association of Precious Metal Manufacturers and Traders. It is driven in part by fears of import tariffs in the US and geopolitical uncertainty. …

… The daily output of cast bars from a Swiss gold refinery is estimated at between two and four tons, says Wild. “But it is difficult to obtain the necessary quantities of gold for production at reasonable conditions—there are supply bottlenecks.” …”

Article: «Gold fliegt erste Klasse»: Schweizer Schmelzen laufen wegen Trump auf Hochtouren ("Gold flies first class" – Swiss refineries running at full capacity due to Trump)

SonntagsZeitung, February 24, 2025 - English translation here.

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World leading Swiss gold refineries are today unable to access sufficient quantities of gold despite the above-ground global gold stock of 6.8 billion (B) oz.

Over the past month, numerous hand-waving arguments have been made as to why delays of shipping leased gold from the Bank of England (BoE) vaults, that are used by the London promissory note cash/spot gold market as a last-ditch resource when market participants are required to make delivery, are the problem.

Since early December 2024, approximately 28 million (M) oz. of gold have arrived in NY COMEX vaults with some market participants estimating a similar amount again believed to be deposited to non-public vaults elsewhere in the US during this period. The data are unclear.

The London Bullion Market Association (LBMA) recently stated that approximately half of the gold transfer to the COMEX came from London vaults. LBMA data indicate that 6M oz. of gold have been withdrawn from London vaults in December 2024 and January 2025. If so we can anticipate another 8M oz. draw-down on LBMA vault gold holdings with delivery delays estimated to be 8 weeks.

So a 6M oz. draw to date and an anticipated 14M oz. draw of gold bars in total from London vaults over a estimated 3 to 4 month delivery period has jammed the gears of the London gold market.

But what about incremental gold delivery demand today, next week, next month, etc. from the estimated total 400M oz. of claims standing in the cash market at the beginning of 2025?

The entire world has seen what has happened and we can anticipate that further holders of the excellent London spot/cash gold promissory notes are also going to ask for delivery.

And the physical gold leased from the BoE is also supposed to be returned with interest.

LBMA data indicate that 1,055 tonnes (34M oz.) of the gold held in London - see the green shaded area in Figure 1 - is the ‘float’ of gold in the City of London’s gold market.

However, we’ve now seen that the ‘free float’ which is the portion of the gold float directly available for delivery against the estimated remaining 385M oz. of spot/cash London promissory notes for gold is today near zero.

Gold in vaults is far different from gold available for market delivery.

Figure 1 - London Vault Holdings of Gold at January 31, 2025; source: LBMA / GoldChartsRUs.com

Famine Stalks The World As Fiat’s Global Failure Now Accelerates

The London gold market chaos is just the proximal signal of an increasingly tight global gold market that has developed over decades.

The ultimate cause of today’s global gold market failure is initiation of trading leveraged gold promissory notes in London (the world’s largest physical gold market) starting in 1987 along with the well-documented off-balance-sheet gold leasing programs by central banks in 1990s that paralyzed the gold price signal for decades while central bankers proclaimed the sequentially larger debt and asset bubbles that they were blowing were ‘beneficial inflation’. Beneficial for whom?

We can see in Figure 2 that the decades of central bank currency inflation has been sweeping into gold and food (‘agri’) commodities on a secular basis. It wasn’t Trump.

Food commodities represent a small percent of the world’s financial markets and as capital continues to move from intangible investment assets, into which monetary inflation was temporarily diverted, and into real goods like gold and food stuffs, we will increasingly see food poverty and famine show its face - in the West.

The rigged gold and silver markets are about to explode higher in price as they release from the multi-decade market fraud- and they will have company.

Figure 2 - Agri Commodities vs Gold; source: gold.topdowncharts.com / Callum Thomas

Thank your central planners - they are your central destroyers.

Best regards,

David Jensen