In this latest interview, Darryl and Brian Panes from As Good As Gold Australia interview Alasdair Macleod, Advisor to AGAGA. Something extraordinary is taking place in the physical gold market, which is experiencing unprecedented stress with massive outflows form the London Bullion Market Association (LBMA) to US vaults and an increasing number of countries are repatriating their gold reserves.
In this latest interview, Darryl and Brian Panes from As Good As Gold Australia interview Alasdair Macleod, Advisor to AGAGA. Something extraordinary is taking place in the physical gold market, which is experiencing unprecedented stress with massive outflows form the London Bullion Market Association (LBMA) to US vaults and an increasing number of countries are repatriating their gold reserves.
Since November 2024, more than 12.5 million ounces of gold and 40 million ounces of silver have moved from London into the US COMEX system, emphasizing that the sheer scale of these transfers suggests a deeper shift in global monetary policy.
JP Morgan is set to deliver $4 Billion worth of gold into COMEX for the February contract - questioning which entities are acquiring such vast quantities of gold.
Why the massive increase in demand, and who is buying it, and why are so many countries repatriating their gold?
In China, several major banks have reported selling out of their gold products due to surging demand, while in South Korea, the countries mint has temporarily suspended sales of gold bars, sighting market tightness. Also, 16 tonnes of gold have recently been removed from GLD, the world's largest gold exchange traded fund (ETF). This could indicate large institutional players redeeming their shares for physical metal - a move that could signal growing distrust in the paper market.
We all know that the paper gold market is heavily leveraged - in this environment what are the possibilities of running out of physical metal and what would be the ramifications if this were to happen?
Andy Schectman from Miles Franklin said, "I have a feeling something big is happening and I will tell you in 35 years, I've never since anything like what is happening right now".
The global economy reached a tipping point in 2008, but the effects are only now becoming apparent. Monetary velocity has spiked, indicating the start of hyperinflation. The US is kicking off 2025 with more than $36 trillion in debt, contributing to the stretched economy. The Federal Reserve and other Central Banks are adding to the problem by buying the debt, thereby printing more money. This situation leaves little option other than hyperinflation. Is it inevitable that we are going into a hyperinflationary depression?
The need to own gold and silver in physical form has never been more important!