ULTIMATE SECURITY IS PCGS AND NGC CERTIFIED GOLD COINS

THIS GLOBAL MELTDOWN UNDERSCORES IMPORTANCE OF HOLDING PHYSICAL GOLD

- James Passin

The gold market is now breaking down. It is impossible to settle COMEX gold futures trades as dealers are unable to secure or transport suitable gold bars to settle against the contracts. While the collapse in air travel is playing a role in the disruption to the gold market, I would argue that the entire leveraged financial apparatus that has manipulated the gold futures markets for decades is unraveling.

The ultimate protection is to hold your own gold physically and not rely on “paper gold” such as ETFs, gold stocks, gold futures, or gold OTC derivatives. The safest way to buy physical gold is to buy gold coins that are certified by a reputable coin grading service, such as PCGS or NGC. I predict that the Premium Over Melt will blow out over the course of 2020, as the true magnitude of the crisis continues to unfold.

Selection of platinum nuggets. JAMES ST. JOHN, WIKIMEDIA COMMONS

UNANTICIPATED IMPACTS

One of the unexpected consequences of the worldwide coronavirus pandemic is the closure of many, if not most, of the world’s underground mines. As workers in these mines work and live close to each other in working environments with limited practical options for improving respiratory conditions, large mining companies, regulatory authorities, and unions are starting to take the sensible decision to shut down mining operations. South Africa just issued an order to shut down all underground mines for three weeks. Other governments are taking similar actions, and I expect that almost every underground mine in the world will cease operating in the near future.