In an interview with Kitco News, Mr. Josh Phair, CEO of Scottsdale mint - the leading gold and silver foundry in the US - revealed unprecedented fluctuations in the global gold and silver market.
Gold mass leaves London, flows to New York
Phair said that banks and large investment funds are rushing to transfer most of their gold reserves to the US. The goal is to bring all the metal domestically, he said, referring to many organizations wanting to ensure their assets are within the US border to avoid political risks and tariffs.
In just a few months, the amount of gold in stock at the New York COMEX gold exchange has increased by nearly 75% compared to the time before the US election. Meanwhile, in London, the world's oldest gold exchange, the waiting time for gold withdrawal at the Bank of England has increased many times. Some analysts call this an unprecedented physical thirst for gold since the 2008 financial crisis.
It seems like an invisible hand is gathering gold and silver vat chately into the US almost preparing for something big to come, Phair said.
Who is collecting gold and what to do?
The biggest question in the market today is: Who is buying this huge amount of gold, and why?
Some experts speculate that the US government may be preparing for a national gold warehouse inventory, something that has not happened since the 1950s.
May someone have been told that there will be a gold audit, and they want to ensure that there is enough gold in the US, Phair added.
He also mentioned the possibility that the US Treasury Department under new Secretary Scott Bessent could consider a new role for gold in monetary policy, especially in the context of the USD under pressure and BRICS countries increasing gold reserves.
Data from the International Monetary Fund (IMF) shows that China alone has purchased more than 200 tons of gold in the past 12 months, while Russia continues to increase the proportion of gold in foreign exchange reserves.
Gold market tightens, rental prices skyrocket
Another notable signal is that gold lease rates have increased sharply. Typically, large banks can lease the amount of gold they hold to make short-term profits. But now, they no longer want to rent - because "everyone wants to keep real gold", according to Mr. Phair. This shows that the physical market is gradually becoming scarce, and spot gold prices will fluctuate strongly.
In the US, some states such as Texas, Utah and Missouri have proposed laws allowing state governments to buy and store gold as collateral. Currently, more than a dozen states are considering a form of gold holdings, Phair said, calling it a new wave of gold in the domestic financial system.
Another factor that worries investors is the possibility of the Trump administration imposing a gold import tax, as part of a protectionist trade strategy. Although gold is often considered a currencies that should be tax-free, the cautious actions of banks - transferring gold back to the country - show that they are considering the worst case scenario.
Mr. Phair concluded: "I have never seen the market fluctuate as quickly as it is now".
World gold price on the afternoon of October 16 traded around 4,231 USD/ounce.
Regarding domestic gold prices on the afternoon of October 16, SJC gold bar prices are trading around 148.1 - 149.1 million VND/tael (buy - sell). Bao Tin Minh Chau traded around 151 - 154 million VND/tael (buy - sell).
The price of SJC 9999 gold rings is trading around 145.9 - 148.2 million VND/tael (buy - sell).
