{"id":53472,"date":"2020-05-30T16:58:58","date_gmt":"2020-05-30T21:58:58","guid":{"rendered":"https:\/\/olduvai.ca\/?p=53472"},"modified":"2020-05-30T16:59:04","modified_gmt":"2020-05-30T21:59:04","slug":"the-largest-ever-physical-transfer-of-gold","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=53472","title":{"rendered":"&#8220;The Largest Ever Physical Transfer Of Gold&#8221;"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.zerohedge.com\/commodities\/largest-ever-physical-transfer-gold\">&#8220;The Largest Ever Physical Transfer Of Gold&#8221;<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Two months ago, when the market was in a state of near-total chaos as a result of a sudden collapse in global supply chains due to the hasty coronavirus lockdowns, one market that saw unprecedented turmoil was that of physical gold.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As we pointed out in&nbsp;<a href=\"https:\/\/www.zerohedge.com\/commodities\/gold-market-breaking-down-gold-spreads-explode-lbma-warns-liquidity-problems\">late March<\/a>, due to a sudden breakdown in physical gold supply as the world&#8217;s top gold refiners, those located in the southern Swiss town of Ticino, namely Valcambi, Pamp and Argor-Heraeus, suddenly stopped producing gold, the&nbsp; result was a record divergence in the price of spot gold vs gold futures contracts&#8230;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/gold%20spot%20vs%20futs.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">&#8230; with gold futures decoupling and trading far above spot prices.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/2020-03-24_0.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The resulting record divergence in gold futures vs spot (<em>in some way analogous to what happened to the price of the prompt WTI contract in April, when the May WTI contract traded as low as ($40) as traders were willing to pay buyers to store oil in a world where there was suddenly no space for the physical commodity)<\/em>, unleashed a flood of physical gold into the US as a record scramble by traders rushing to take advantage of this arbitrage opportunity by shipping bullion to New York sparked what&nbsp;<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-05-29\/virus-has-sparked-round-the-clock-rush-to-fill-u-s-gold-vaults\">Bloomberg said&nbsp;<\/a><strong>&#8220;may be one of the largest ever physical transfers of the metal.<\/strong>&#8220;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>&#8220;The flows into New York are unprecedented,&#8221;&nbsp;<\/strong>Allan Finn, the global commodities director at logistics and security provider Malca-Amit told Bloomberg as his company\u2019s teams in New York have been working 24 hours a day to cope with unprecedented demand for&nbsp;<strong>physical gold<\/strong>&nbsp;while navigating lockdowns, flight disruptions and social distancing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;The Largest Ever Physical Transfer Of Gold&#8221; Two months ago, when the market was in a state of near-total chaos as a result of a sudden collapse in global supply chains due to the hasty coronavirus lockdowns, one market that saw unprecedented turmoil was that of physical gold. As we pointed out in&nbsp;late March, due [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[83,16400,374,14606,29825,1111,4318],"class_list":["post-53472","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bloomberg","tag-global-supply-chains","tag-gold","tag-gold-production","tag-gold-refineries","tag-physical-gold","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53472"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53472\/revisions"}],"predecessor-version":[{"id":53473,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53472\/revisions\/53473"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}