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2020-

2020-03-24 e
This is the day the dollar died.

It is time to head for the exits.

It is time to have at least one year's worth of living expenses in cash, outside the banking system.

If you were thinking of buying gold, you should have done that last week.

"The Gold Market Is Breaking Down": Gold Spreads Explode As LBMA Warns Of Liquidity Problems

Last night, when observing the unprecedented "gold run" on precious metals dealers which has left all gold vendors with little to no physical gold, we said that "the price of physical gold has decoupled from paper gold" as a result of paper gold liquidations as leveraged funds scramble to cover margin calls using safe assets...

... resulting in an arbitrage that physical gold buyers, i.e., those who don't have faith in gold ETFs such as the GDX or simply prefer to have possession of the metal, find especially delightful as it allows them to buy physical gold at lower prices than they would ordinarily have access to.

However, we also noted that whereas in the past such conditions were self-correcting, this time it is not only a record surge in demand for physical gold but also a near shut down in supply as the most productive gold refiners, those located in the southern Swiss town of Ticina, namely Valcambi, Pamp and Argor-Heraeus, now appear to be offline indefinitely.

The result is that the spot/futures price divergence discussed last night and further described here, has exploded...
...
"Backwardation shows “there is a lot of demand” with market participants worried about the economy and focusing on the response by governments and central bankers, Flynn said. “People are buying gold like it’s going out of style,” he added.

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