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Laurent Maurel: The end of paper gold?
By Laurent Maurel
GoldBroker, London
Friday, February 21, 2025
The price of gold is setting a string of all-time records, buoyed by strong physical demand. The rush to buy the precious metal is intensifying as investors and institutions seek to secure their assets in the face of economic uncertainty.
Stress signals are multiplying on the market, with delivery times lengthening, inventories under pressure and bullion premiums soaring. This upward movement reflects a growing crisis of confidence in paper gold and official gold reserves, as market players increasingly demand physical deliveries.
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This week, StoneX's CEO sprang a surprise by declaring on Sky News Arabia that more than 2,000 tons of gold had been transferred to the United States in the space of a few weeks.
Philip Smith warned of a persistent price discrepancy between gold futures in New York (Comex) and the physical over-the-counter market in London. This divergence, oscillating between $25 and $30 an ounce, impacts market efficiency and reflects a climate of uncertainty exacerbated by the Trump administration's trade policies.
Since November, the threat of tariffs (up to 25%) has disrupted gold flows and pricing. In response, more than 2,000 tons of gold have been transferred to the United States in recent weeks, a massive movement fueled by investors' desire to protect themselves in the face of regulatory ambiguity.
Two thousand tons of gold -- a staggering figure. It illustrates a veritable rush for physical gold, revealing a clear urgency to move all available metal to the United States. The unprecedented scale of this movement reflects growing concern about tensions on the gold market and the future availability of the metal.
This massive transfer reflects a loss of confidence in the storage of gold abroad, particularly in London, which has always occupied a central position in the precious metals market. The idea that a country as powerful as the United States considers it essential to secure such a large volume of gold on its territory fuels speculation about possible shortages or a reconfiguration of the international monetary system.
At the same time, gold deliveries on the Comex are reaching record levels, a clear indicator of the explosion in demand for physical gold. This phenomenon could create a snowball effect, prompting other major institutions and central banks to step up their delivery demands, putting further pressure on the system as a whole. ...
... For the remainder of the analysis:
https://goldbroker.com/news/the-end-paper-gold-market-3500
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Apollo Silver Corp.
Barksdale Resources
Dolly Varden Silver Corp.
Dryden Gold Corp.
Group Eleven Resources
Guanajuato Silver
IBK Capital Corp.
Independent Trading Group
Mining Discovery
Power Nickel
Silver North
Strike Point Gold
The National Investor
The Prospector
Western Alaska Minerals
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