Posted on Apr 6, 2020

Money Metals Exchange

London Bullion Market Association (LBMA) officials have loudly proclaimed there are plenty of gold bars in LBMA and COMEX vaults to meet surging demand from buyers.

Unfortunately for them, confidence is particularly fragile these days and cracks are starting to appear.

Which is why anxious officials there issued not one, but two memos last week in an attempt to reassure traders.

It’s interesting the LBMA, along with the COMEX, felt a need to put out back to back statements. If inventories are plentiful, both exchanges should be busy delivering gold, on time and without delay. The best way to build confidence is simply to meet buyers’ expectations.

The trouble is these expectations are not being met, and officials blaming disruptions related to COVID-19. There are, for example, not enough 100-ounce gold bars in the U.S. to cover demand from those standing for delivery on COMEX futures contracts.
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