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Real-World Problems: The Current State of The Gold Market In Plain Language

Real-World Problems: The Current State of The Gold Market In Plain Language

There have been recent rumors in the gold market about the availability of physical gold. Some social media personalities and news agencies have claimed that there is a shortage of physical gold on the market. However, it is not so much about a shortage of gold, but rather a sudden demand for gold in places where it cannot be quickly supplied in the desired form. <span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text" >Real-World Problems: The Current State of The Gold Market In Plain Language</span>“></p>



<p>These availability problems are largely due to what I like to call real world problems. Logistics and production processes play an important role in the journey of the gold from the mine or warehouse to the end-user. </p>



<p><strong>Logistics</strong></p>



<p>After the gold has been mined, the rough gold material is often transported to gold refiners for further processing. Another option is that the gold moves from warehouses around the world in various shapes and sizes to the refineries. In this case, gold is often delivered in the form of roughly 12.4-kilo bars (400 Troy ounces) or as recycling material. </p>



<p><strong>Roughly, a typical gold production chain goes like this:<br></strong>Gold Mine or Other Warehouse – Logistics Company – Refinery – Logistics Company – Mint – Logistics Company – Bullion Dealer – Individual</p>



<p>As you can see from the chain, logistics companies play an important role in the flow of gold. Mostly gold moves with air cargo, and as recent news has shown, international air traffic has fallen significantly. This has caused problems in moving gold from one country to another. </p>



<p>At Voima, the supply chain is a bit shorter because our sourcing department obtains some of our gold directly from the refineries. </p>



<p><strong>The production chain of Voima: <br></strong>Gold Mine or Other Warehouse – Logistics Company – Refinery – Logistics Company – Voima’s Vault Service</p>



<p><strong>Production </strong></p>



<p>…click on the above link to read the rest of the article…</p>
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