Your Economy (No Politics)

[RapidTrends]

What I find many do not realize, is that there are supply demand imbalances in the metal trade in various areas of the world.

For example, the potential size and rate of increase of the investor market in the USA is massive in comparison to the size of the metal supply in north america, whereas there are regions of the world with very strong metal supply but much smaller potential investor demand such as Australia and Europe.

What we are seeing is the US Mint, bound by policy to source the gold and silver from domestic metal supply, are running into hard limits in domestic availability of physical supply.

This isnt happening the same way in Europe and Australia for example. While retail demand is high, this is more due to a lack of fabrication capacity meeting demand, not a lack of metal supply.

The thing that I found shocking recently, is that now Europe is hitting fabrication bottle necks from demand at the refinery level. This does not mean there is no supply, there is ample metal, but refineries can only fabricate so much 400oz, 1000oz, or kilo bars at a time.

Speaks volumes imo.