A developing bullion crisis...

Apparently, the Bank of England is delivering bullion to be shipped to satisfy Comex demand. This is highly unusual and probably a sign of a very serious crisis developing.

The story coming from the media and analysts is that the enormous premiums for gold and silver on Comex futures are the consequence of rumours that President Trump will introduce tariffs, if not across the board, on Mexico (silver) and Canada (gold).

A moments thought allows us to dismiss targeted tariffs against Mexican silver and Canadian gold. They lose their identity when refined. As for general tariffs, that is almost certainly nonsense as well, because Trump has always said tariffs would be imposed on manufacturing, not commodities.

If tariff stories are just a smokescreen hiding the truth, then why are futures being priced significantly higher than spot, pushing effective gold lease rates through the roof?