There is enough gold in London and trading on the US futures market is now ensured. The only question is who actually owns this gold and at what price the owners are willing to sell it.
The general situation on the gold market should be known to interested market observers. In the wake of the Corona crisis, the demand for physical gold has exploded at all levels. It is not just private investors who are pounding on all the stocks that still exist. Recently, there has also been a significant increase in requests for physical delivery of the precious metal on the US futures market (turbulence on the gold market – this happened in the USA!). At the same time, there is a shortage of supply worldwide because supply chains are starting and large refineries and refiners have shut down their operations.
The London Bullion Market Association (LBMA), arguably the most important community of gold wholesalers, has recently appeased. On March 26, it was announced that the remaining processing capacity was sufficient to continue to serve global demand. “LBMA is confident that there is more than sufficient refining capacity globally,” it said. The LMBA accredited 72 gold refineries in 31 countries that produce gold according to the wholesale good delivery standard. This includes practically all major manufacturers of investment gold and investment bars.