Gold Revaluation Will Be the Ultimate Margin Call

Published by Fabrice Drouin Ristori | Apr 10, 2020 | Articles 12379

My selection of tweets of the week concerning the evolution of the "paper" and physical gold markets: COMEX (futures), LBMA, gold revaluation...

at reduced capacity
— Fabrice Drouin Ristori (@FabriceDrouin) April 5, 2020

Total annual gold mines output will drop drastically this year due to Coronavirus. Gold refineries to reopen at reduced capacity. Massive worldide physical demand for gold and silver. Dont expect shortage to go away shortly. #gold #silver
— Fabrice Drouin Ristori (@FabriceDrouin) April 5, 2020

I’ve often said that cash-settled futures on a monetary asset like gold with no position limits shifts price discovery from supply/demand fundamentals to whoever has the biggest balance sheet.
— Luke Gromen (@LukeGromen) April 4, 2020

Gold Markets Are Being Haunted by Signs of Dislocation Again - Bloomberg https://t.co/HtHDUHGL1C
— Luke Gromen (@LukeGromen) April 7, 2020

Dump the USTs, keep the gold. Gresham's law in action
— Luke Gromen (@LukeGromen) April 7, 2020

Nobody will be able to predict when to move from dollars to physical gold. A rising dollar might look attractive, but think about the possibility of an overnight gold revaluation. You won t be notified in advance, it s not going to be a gradual process. Why even take the risk ?
— Fabrice Drouin Ristori (@FabriceDrouin) April 8, 2020

Since you will be asked to put much more paper money to own/keep real money : gold in it s physical form. #gold
— Fabrice Drouin Ristori (@FabriceDrouin) April 8, 2020

#Weimar https://t.co/XTTY8BgNqk
— Fabrice Drouin Ristori (@FabriceDrouin) April 10, 2020

Charter flights insured to ship gold to ease supply logjam - LBMA https://t.co/GEFhRSppWH pic.twitter.com/xCRMMv5hp5
— Reuters UK (@ReutersUK) April 9, 2020

In normal times you could buy physical in London (close to spot) sell at the same time on the COMEX (54 dollars profit per oz) and then deliver the physical at contract expiration. But since you can't get your hands on physical gold at spot price, nobody is risking it.
— Fabrice Drouin Ristori (@FabriceDrouin) April 9, 2020

Endgame scenario : #gold revaluation https://t.co/B7MvmKgQpz
— Fabrice Drouin Ristori (@FabriceDrouin) April 10, 2020

Volume in gold futures market (paper gold) was equivalent of 138 years of mined gold traded in March alone.

Outrageous statistic. When more redemptions are made, this paper gold market is going to collapse!

Got #gold? pic.twitter.com/OsufHcvIHI
— Gold Telegraph (@GoldTelegraph_) April 10, 2020

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Tags : Gold Economics Financial crisis Supply & demand Central banks

Fabrice Drouin Ristori Founder/CEO

Fabrice Drouin Ristori is a French investor and entrepreneur who has been a specialist of the gold and silver markets since 2008. He is the CEO of GoldBroker.com, which he founded in 2011.

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