“We’re at a very critical point right now where… we’re running out of physical silver and gold.”
– Precious Metals Advisor Tim Murphy
Whether you’re actively investing in precious metals or you’re still considering it, you need to understand the crucial supply shortage affecting the gold and silver markets.
In this week’s The Gold Spot, Scottsdale Bullion & Coin Sr Advisor Steve Rand & Precious Metals Advisor Tim Murphy explain why demand is surging and why gold and silver prices are set to jump. Don’t miss out!
The Banking Crisis Isn’t Over
No matter how many times Janet Yellen tries to convince Americans of a soft landing, the reality on the ground is clear: the banking crisis is only getting worse. Earlier this week, the fall of First Republic Bank marked the second-largest bank collapse of 2023. J.P. Morgan swooped in to buy up their assets, but these moves only consolidate more power under large banks.
Experts warn that the endemic failures of the banking system put over 200 institutions on the verge of collapse. Immediately after filming this week’s The Gold Spot, PacWest – another regional bank – saw its shares plummet 60% after it announced it would actively seek a buyout. And, yet another one! According to a Financial Times report today, Western Alliance, an Arizona-based bank, is another bank seeking a sale.
Supply Deficits Strain Gold & Silver Markets
As the banking fiasco escalates, precious metals markets are reeling from supply deficits. Currently, gold and silver demand is outpacing availability. We’re seeing waning availability across a range of products, but we’re still able to meet client orders (for now.) However, it’s getting increasingly difficult to locate items, and the situation is expected to get worse.
Dwindling supplies are also hitting the world’s largest bullion producers. The New York Mercantile Exchange and the London Exchange are seeing their inventories dry up quickly. It’s only a matter of time before a major crisis creates a surge in demand for physical metals and suppliers run out again.
De-Dollarization Accelerates Worldwide
We’ve already seen a few economic emergencies in the past few years that forced investors to shift away from banks in favor of hard assets. The COVID economy and the Silicon Valley Bank collapse immediately spring to mind. However, the biggest threat to investor wealth is the process of de-dollarization.
Right now, countries across the globe are decoupling their economies from the US dollar. There are a multitude of reasons behind this move, but the foundational cause is a lack of confidence in the greenback. Savvy investors, from central banks to retail investors, are preserving their wealth in gold and silver before the full effect of de-dollarization rattles traditional markets.
👉 Must See: The De-Dollarization Timeline
Artificially Low Prices Won’t Last
If you’re wondering why gold and silver prices remain relatively low despite surging demand, you’ve hit upon a crucial situation. Major banks are manipulating metal prices by continuously selling gold and silver bullion to artificially keep prices low. This allows central banks to scoop up physical assets at discounted rates which ends up hurting inventory supplies.
Simultaneously, many producers are manufacturing fewer gold and silver assets as prices remain stagnant. At some point, there won’t be enough supplies to fuel this manipulation. Soon, these whales will have to buy back the shorts which creates a bullish environment for gold and silver. The spot price will eventually reflect the skyrocketing demand for physical gold and silver.
Don’t Wait to Buy Gold (& Silver), Buy Gold (& Silver) and Wait
As bumpy market conditions make a rough ride in traditional sectors, gold and silver are primed for growth. These reliable hedges against inflation tend to rise in value as the rest of the economy slides.
We’re already seeing upward movement in gold and silver prices on the back of the Fed’s mention of rate hike pauses and the ongoing banking crisis. Throw in the physical metal shortages and you have a recipe for serious growth.
Timing the market is always a fool’s errand. Smart money buys early and waits for the inevitable move upward. If you’re interested in learning more about which precious metals match your investment goals, request your FREE COPY of our insightful Gold and Silver Investment Guide today!