Good Luck Getting Your Hands on Physical Gold Unless...

Written by Jason Simpkins
Posted March 27, 2020

Gold-buyers have a problem...

Supplies are drying up. 

For one thing, mining operations, like many other businesses, are closing due to the Coronavirus.

You simply can't have all those people huddled together inside a mine in this day and age.

So, South Africa said that it would shut down all but a few necessary mines for at least three weeks. 

Canadian mines in major jurisdictions like Northern Quebec and Ontario are being closed, as provincial governments deem them nonessential.

Vancouver-based B2Gold Corp. says it halted its mining operations in the Philippines because of government restrictions aimed at stopping the spread of Coronavirus.

Lundin Gold Inc. has shut down its mine in Ecuador.

And the world’s biggest gold producer, Newmont Corp., said that it was putting four mines on temporary care and maintenance.

Of course, it's not just mining operations, either.

Refining, processing, trading, and retail operations have been curtailed, as well.

Switzerland, a major international hub for processing gold into bars and coins, has seen its refining industry grind to a halt.

“The whole supply chain is getting tighter and tighter,” Debra Thomson, a global sales director for gold at IBV International Vaults, which offers safe-deposit boxes and the purchase of precious metals, told Bloomberg. “The last time I saw this amount of chaos in the market was with 9/11.”

“We’re still selling, but we’ve got to defer deliveries,” Thomson added. “If somebody is prepared to do that, we can still trade. Otherwise the trading is limited to minimal stocks.”

As a result, some of the most sought-after physical gold coins, including the Canadian Maple Leaf and the South African Krugerrand, have disappeared almost overnight.

Even jewelry is getting scarce, since jewelry stores and marketplaces have closed. 

And transportation? Shipping and trucking? That's been shut down, too.

So while London, the global hub for the physical gold trade, still has a huge stash of 400-ounce bars (worth over $420 billion) inside vaults beneath the city, it's struggling to get those bars to New York to be traded. 

That's why we're getting a disjointed market situation where the difference between the spot price of gold in London and April futures contracts in New York shot up to around $100.

"There is gold around, it's just either in the wrong location or in the wrong form," Ross Norman, an analyst and former senior bullion dealer at Credit Suisse, told CNN. "Anyone looking to buy a physical bar or settle a futures contract has an issue."

So if you're looking for gold, I'm afraid you're SOL. 


Oh right, there is one way investors can still buy into physical gold — and better still, do it at a discount.

And Gerardo Del Real, our resident gold mining expert and editor of Junior Mining Monthly, can show you exactly how to do that.

His latest report explains a market loophole, so-called "Tier 2 Gold."

This market loophole lets investors buy Tier 2 Gold for as little as $23, $15, or even $12 per ounce.

With the Federal Reserve and other central banks deploying extreme new money-printing maneuvers in a desperate bid to avoid economic collapse...

And with gold set to shoot past $2,000, and past $2,500 per ounce to dizzying new record heights...

Investors simply can't pass on an opportunity like this.

So check that out as soon as you can.

Fight on,

Jason Simpkins Signature

Jason Simpkins

follow basic@OCSimpkins on Twitter

Jason Simpkins is Assistant Managing Editor of the Outsider Club and Investment Director of The Wealth Warrior, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's page. 

*Follow Outsider Club on Facebook and Twitter.

Heal Your Ailing Portfolio Body