In previous weeks we covered stories that had been surfacing regarding delivery times for physical bullion jumping from 48 hours to 2 months, premiums to borrow gold and silver paper shares going parabolic due to tighter physical supply and increased demand, as well as the mass repatriations of gold that are beginning to take place across the world.  This week we are going to build off those stories as it is now being reported that certain suppliers are simply tapped out and have little to no product left to sell causing them to effectively shut their doors to the public.

This domino effect is one that has been in the works for years, namely since 2020.  We long reported our thesis that due to the immense currency creation that took place during lockdowns that high inflation would lead to a deterioration of citizen standard of living and would therefore trigger a rush to physical wealth.  We also warned that mainstream media sources would leave this unreported until it was far too late and by the time the public at large was made aware, there would be little to no bullion left to purchase.  We are quickly reaching that point as now governments and “industry whales” with incredibly deep pockets are rushing to buy as much of the physical metal (gold and silver) as they can.  As a quick reminder, on the market there has been 128.68 paper ounces of gold sold for every one ounce of physical gold and 378.52 paper ounces of silver sold for every one ounce of physical silver.  These paper ounces should be backed 1:1, however, as currently stands there are hundreds of owners of the same ounce meaning only one lucky investor will be able to receive the physical metal when delivery is demanded.  Further to that, based on the amount of currency circulating in the United States today, it is estimated that gold should be $8997 USD/oz and silver should be $1162 USD/oz.  This is the equivalent to $12,799 CAD/oz of gold and $1653.15 CAD/oz of silver: an increase of 205.75% and 3499.75% respectively for both metals from current USD prices.  This also highlights why many view silver as the most undervalued asset in the world today.

The first shortage we had seen reported came from popular mint and refinery, Argor-Heraeus.  They put out a statement that read, “In light of current economic conditions, we are witnessing unprecedented challenges.  Persistent inflation, geopolitical uncertainties, and exceptionally high interest rates… Despite our best efforts to mitigate these, the current cost structure has reached a level that is no longer sustainable.”  In short, there simply isn’t enough bullion to go around at these currently unvalued prices.  Due to this, they have added an additional surcharge on the wholesale level of $3.50 USD/oz of gold and $3 USD/oz or 9.23% for silver, again, highlighting just how undervalued silver is at current prices.  In addition to these increased wholesale premiums, they also announced they are suspending sales of their 50g and 100g gold bars.  The reason we believe to make the most sense as to why sales are being suspended is simply because they cannot afford to mint new bars at the cost they are being told to sell their current inventory.  Due to that fact they have decided it is better to have the gold in their possession until higher true values are realized and it is once again profitable to sell these larger bars.

The second shortage that has come to light in the precious metals industry is out in South Korea.  We previously reported in our newsletter last week that the Korea Minting and Security Printing Corp. suspended sales due to being unable to keep up with demand.  A few days later The Korea Gold Exchange announced the same.  It was stated that 10g and 100g gold bars had sales suspended to banks since October of 2024 and that 1-kilo gold and silver bars would no longer be available as of February 14^th, 2025.  Supply simply cannot keep up with demand and this is happening in every continent in the world.

This begs the question of, “Why?  What changed?”.  And the answer, we believe, comes out of the United States.

FORT KNOX

Since Trump retook office on January 20^th, 2025, Fort Knox has been thrust back into the spotlight.  With Elon Musk running the new Department of Government Efficiency (DOGE), he has begun to audit all departments of government to ensure money is being spent where the people of the United States are being told it is.  Naturally, the question of whether the United States actually has the gold they claim to was brought up, and one Elon was quickly to address.  His answer: Audit Fort Knox.  A statement that was later backed up by President Donald Trump who stated on Air Force One, “We are going to go into Fort Knox to make sure the gold is there.”.  Later, he expanded on this thought, “We want to find out, ‘did anyone steal the gold in Fort Knox?’  I don’t want to open it and the cupboards be bare.  It could happen.”.  The United States is said to have 147.3 million ounces of gold in Fort Knox, although, no one has opened the vault doors for an audit since 1974, over 50 years ago.  That in conjunction with President Trump’s statements that the gold could be gone, have the world on edge.  If the gold has in fact disappeared, paper gold prices will effectively go to zero, while physical gold prices will soar as people realize the importance of physical ownership.

What is interesting is that since talks of auditing Fort Knox have become mainstream, the United States has been importing massive amounts of gold, almost as if they are trying to refill the coffers before the cameras enter.  Switzerland, one of the largest gold exporters in the world released their January numbers that showed the United States imported a staggering 6,202,931 troy ounces of gold out of the 7,247,571.55 troy ounces of gold they exported in January of 2025.  That is 85% of all gold exports that were sent directly to the United States.

One thing is for certain, gold and silver are being accumulated and hoarded on mass.  It is clear that countries, central banks, as well as mints and refiners alike see what is on the horizon.  They also understand that precious metals will once again form the bedrock of our next financial system and that the only way these assets will provide any benefit to their owner is to have your metal in your own possession and not in someone else’s vault.

We leave you with a quote to ponder from author Ayn Rand, 1905-1982.

“Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence.  Destroyers seize gold and leave to its owners a counterfeit pile of paper.  This kills the objective standards and delivers men into the arbitrary power of an arbitrary setter of values.  Gold was an objective value, an equivalent of wealth produced.  Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it.”