In the last 3 trading sessions the Dow has logged two of its top six worst percentage declines in history.  The Fed, already out of traditional rate cut ammo, is almost certainly contemplating more extravagant asset purchases and/or the idea of negative interest rates (NIRP).  President Trump, who prior to yesterday seemed to be playing a fiddle as the coronavirus burned (literally), now says the bad times could linger until August.  Clearly we are not in Kansas any longer.

While panic grips the financial markets nearly all asset classes have fallen, including precious metals.  If you are a precious metals bull keenly aware that central bankers have gone crazy in recent days, this decline in precious metal prices could represent an excellent opportunity to buy. 

Unfortunately, when I went to see my precious metals guy today he was sold out of almost every silver product imaginable.  And what he did have left, a handful of nameless 10 ounce bars, he was selling at more than 20% above spot.  He claimed there would be a 4-week waiting period before he gets more – a seemingly insane comment given how today’s internet-delivery centric world operates.  Suffice to say, this is the first time I ever walked out from this place empty handed. 

Does the highest paper-to-physical price difference in precious metals that I have ever seen mean that something is amiss?  Or does the widespread carnage in the markets mean that the paper price of precious metals has collapsed simply because unknown selling forces are clamouring for liquidity.  Whatever the case, you can add the peculiar precious metals market to the increasingly volatile and hysteria-driven financial landscape, and continue to watch, and wait, with amazement.