Meanwhile, the spread between near term futures and physical bullion at top dealers like Apmex etc, is another 100 to 150 dollars.
Long time gold watchers will understand how unusual this is. Much of the dislocation is being ascribed to closed mines and mints on account of the virus. But mines represent bullion in the ground. And mints provide new coins. But in normal times there is always enough gold to satisfy investor demand. There is just as obviously a Demand Dislocation. People want bullion and People can't get bullion unless they pay prices very close to the peak of what bullion sold for back when spot gold topped out at $2000. And people are okay with paying that. So new coins are needed.
Is it just the Virus?
No. It's the global response to virus: Zero to Negative Rates forever, and Untold Trillions in stimulus that is being printed without any source of funding. In fact the funding sources: Taxes have disappeared as business activity is obviously contracting while Government Spending has gone into hyperdrive.
Right now, the massive debt load is holding down - or driving down - rates. But QE INFINITY is a fact of life, not a theory. And every sentient being on earth right now is aware - even if they have no understanding of basic economics - that the value of their money is being eroded. And eventually Rates will rise again (Who in their right mind would lend anyone money at the current rates?) creating the second wave of this crisis.
And then Gold will be unaffordable and Silver will have its day. Just to be clear: high quality bullion silver is already trading at near double the spot price.
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