17 Comments
User's avatar
RussTrommer's avatar

Get your popcorn ready, could be a fun show.

Hoping some day you’ll be making similar observations about silver.

Everything catching up to gold, and gold is catching a second wind.

Expand full comment
David Jensen's avatar

Yes - I think physical demand is sufficient now that gold, silver and platinum are going to run together.

Expand full comment
David Jensen's avatar

And then there is quiet little palladium.

Expand full comment
Ben Gallagher's avatar

If they all run together they will have trouble with refineries not able to refine 'all' metals in the required volumes to meet the demand. In prior squeezes of a single metal, they were able to prioritise refinement of the single, impacted metal.

Expand full comment
Alexander Fernandez's avatar

Interesting spike in lease rates—24.5% is eye-popping. If this really signals a physical squeeze in London, how sustainable is it? And could this dislocation between COMEX volume and London supply set off broader price volatility or even forced delivery failures?

Expand full comment
David Jensen's avatar

It takes only a few days to move metal from Switzerland and other vault locations. If the lease rate does not decline from these extreme levels, it means that we need much higher prices to resolve the shortage.

Expand full comment
bitcrypt's avatar

So, as a bi-metallic stacker...sitting here with some dry powder.... wondering about a play to spare some some of that power to lock and load some platinum cartridges. As I mentioned a couple days ago, I see the and hear the signs of a platinum bull run, but concerned about the long-term exit strategy. Both gold and silver ("Gold the money of kings, silver the people's money", plus silver's industrial uses) appear to have a path for future utility, perhaps even in a Mad Max scenario. I can't visualize how to parlay platinum into future value. Just something else to potentially barter with?

Expand full comment
David Jensen's avatar

IMO gold and silver as monetary metals are more certain while platinum is esoteric.

Assuming there isn't complete collapse, platinum has valuable uses though.

For now I think Pt is going to run.

Expand full comment
Peter Redward's avatar

As there's no platinum to be drawn from the BoE, and most of the platinum in vaults in London will be held against ABRDN in ICBC Standard Bank's vault, I'm guessing that theres basically no free float at all. This is why I held onto my XPT view for the past two years. In February I sold my physical silver and bought platinum, adding ABRDN in May.

Expand full comment
Peter Redward's avatar

I felt like a cracked record talking about it to clients tho... Like calling the Great California earthquake. You know it has to happen... But when???

Expand full comment
David Jensen's avatar

A 25% lease rate means something is seriously breaking.

Expand full comment
Peter Redward's avatar

Yes. Totally. I struggle with getting data in lease rates so thanks for posting.

Expand full comment
Peter Redward's avatar

I've spent a lot of time poring over the annual reports and quarterly updates of the three big miners and my view has been for some time that as their profitability got squeezed, they ramped up their smelting operations to offload inventory. That, and automakers lowering their inventory for the same short term profit motive last year, meant supply was higher than the WPIC data indicated. But now they're all scrambling. Thing is, this market was made to be cornered. Above ground stocks equal in value to about 20t of gold, much of it tightly held in China. I've been amazed no one tried to corner it.

Expand full comment
David Jensen's avatar

The market has been lulled to sleep with paper price maintenance for decades.

The problem is that price fixing always results in shortage.

And here we are.

Expand full comment
User's avatar
Comment deleted
Jun 12
Comment deleted
Expand full comment
David Jensen's avatar

when Buffett bought 120M oz. of silver, they were a little more subtle.

Expand full comment
User's avatar
Comment deleted
Jun 12
Comment deleted
Expand full comment
David Jensen's avatar

I heard Armstrong's story - brutal - but not Onassis.

Expand full comment
User's avatar
Comment deleted
Jun 12
Comment deleted
Expand full comment
David Jensen's avatar

The Armstrong contempt imprisonment was more than bizarre.

Armstrong says price inflation is not caused by monetary debasement - that is where he lost me.

Expand full comment