As I have discussed in the past, the "paper" precious metals markets are currently being artificially pushed lower with enormous short positions by major investment banks.
This artificial suppression has created a disconnect between the paper price of the precious metals on the COMEX and the real physical metal price of the metals being sold outside of the COMEX.
There is no major market medium that can track these prices at a non-COMEX spot price, but in the recent headlines you can read stories of extremely large purchases of the very wealthy over the past few weeks making purchases at huge premiums over the current artificial spot price. For example, the price of gold has been trading in the $700's for the past month, but a few weeks ago there was an enormous purchase made overseas for around $1100 an ounce.
The only real physical market that can be tracked outside of the artificial paper market is Ebay which is a global network found in just about every major country in the world. Unfortunately with Ebay there has not been a system put in place to track what the average price is paid per ounce on its website.
A company called 24 hour gold has put together a program to track the daily average for gold and silver purchased on the free market. I have placed the links to left of this page, making it easy for you to access at any time.
Gold is trading around $950 an ounce in the free market depending on the size of the purchase. Silver is currently trading around $18 an ounce for large amounts and over $20 an ounce for smaller amounts.
So this creates a rational question? Why would I not just take delivery at the artificial spot price created on the paper market and then sell it into the real market? You can. Two people I know made physical purchases yesterday to protect their wealth. One received his invoice from the dealer today with the following at the bottom:
"All Bullion Products are shipping 12 -14 weeks from the receipt of good funds with the exceptions of Silver and Gold Canadian Maples,Silver and Gold American Eagles and Silver Vienna Philharmonics which will be available for shipping in March of 2009."
14 Weeks or March of 2009!
This will continue until the COMEX defaults on its paper contracts, or the paper price aligns with the real price. Remember, this is all happening with the dollar strengthening in value over the past few weeks. Imagine what things will begin to look like when the dollar begins its final collapse downward 80-90%.
Imagine what it will look like when the public first begins to turn to gold and silver for safety like they did in the late 70's, except this time they find out that there is no gold and silver available. Right now there is a 14 week wait to take delivery and 99.9% of the country has 0% of their portfolio allocated in gold and silver.
What would happen if they allocated just 1% of their investments into the metals?