goldsilverworlds.com / By Taki T / May 26, 2013
As readers know by now, currently the gold futures market is dominant when it comes to setting the short term price. But, increasingly, the signs of shortage in physical metal raise the question when the physical market will become dominant in leading the gold price. In this audio interview David Morgan explains his view on this phenomenon (the relevant part starts at 6 minutes 15 seconds). He also explains which signals would reveal a fundamental change.
In general, David Morgan points out that the physical gold market is breaking down, which is based on several facts. Germany was only able to receive its gold from the US over a period of 7 years. Lately, the Dutch bank ABN Amro officially refused to deliver physical metal for its customers with gold holdings; they could only settle in cash. Related to that, a lot of anecdotal evidence has been reported lately in which people testify that they could not receive physical delivery of their gold.