The gold price is currently going crazy. The spot and the future have now developed significantly apart. The April future peaked again yesterday at the $ 1,700 mark, while the spot price just passed the $ 1,600 mark. There is currently a kind of war on the gold remaining on the gold market.The background: physical gold is becoming scarce. Minting companies such as the Canadian Mint but also minting companies in Switzerland are currently closing for two weeks (or more?).
There are also mine closures and, of course, more difficult transport routes due to travel restrictions. In South Africa, production will stop for 21 days from Thursday. Some traders now report “sold out” for gold coins. This is annoying for private investors. But the drama is happening for banks and institutional investors on the futures market. It is there that delivery obligations that have been entered into through futures contracts have to be fulfilled. Usually the whole thing is often paid for in money, but if delivery is increasingly requested (which is quite possible in times of real scarcity), it turns out that this gold is simply not available.