“HCS Worldwide” – COMEX prices do not represent the true price of gold.
“HCS Worldwide” analysts believe the discrepancy between the price of gold on the COMEX exchange and that in physical gold is creating a two-tier market.
In an analysts’ note to clients, “HCS Worldwide” apparently suggest that where gold is selling at $700 on the COMEX, the price of physical gold is over $1000. The analysts cite emails from clients who recently found efforts to acquire gold from bullion dealers frustrated by lack of supply. Ordinarily, this would translate into higher prices on the COMEX but because of heavy short-selling by banks and hedge funds keen to keep gold’s appeal as a hedge against financial system uncertainty; gold appears to be cheaper than it really is.
A source close to “HCS Worldwide” said that if long investors in COMEX hold out for actual physical delivery of their gold, the exchange could face default since it has insufficient reserves of gold in its warehouses. Such an occurrence could send gold soaring in price.
With little end in sight to the turmoil afflicting world markets, “HCS Worldwide” remain bullish on precious metals and the mining firms producing them and continue to urge clients to remain steadfast.
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