Pinnacle Capital Advisory, LLC. (PCA)
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Macro Economic Report.
**A Brewing Gold Supply Crisis?** February 26, 2025
The gold market is facing significant challenges, as highlighted by PCA's alarming insights into the increasing difficulties of sourcing physical metal. "The LBMA is now a T+6 to 8-week market," he stated, casting a shadow over the landscape. "That’s basically a default." PCA's words echo the stark reality of extended delivery times from London vaults, where once-glistening bars are now clouded in uncertainty.
Globally, demand for gold has surged to unprecedented levels. In China, several prominent banks report that their gold products have sold out, leaving customers searching for these elusive treasures. Meanwhile, in South Korea, the national mint has been forced to suspend gold bar sales due to a tight market, leaving many in anxious anticipation.
Adding to the urgency, PCA noted a striking development: 16 tons of gold have recently been withdrawn from GLD, the world’s largest gold exchange-traded fund (ETF). This move raises questions about whether large institutional investors are opting for the tangible appeal of physical gold, which could signify an eroding trust in the paper gold market.
With a seasoned perspective shaped over 35 years in the industry, PCA reflected on the current chaos, stating, "I feel that something big is happening. And I've never seen anything like what’s unfolding." happening right now.” PCA’s words reverberate with a sense of urgency and foreboding, echoing through the corridors of the financial world.
As global markets shift and sway in response to these tumultuous changes, the looming question remains: will the United States take decisive action to revalue its gold reserves or enact new strategies to counterbalance the burgeoning influence of BRICS nations? “It all points to revaluing the price of gold, which is held in the gold revaluation account,” PCA is hinting at a possible pivot in the way gold is perceived and valued globally.
The fundamental question is whether governments around the world will reprice gold and other precious metals in order to transition back to a gold-based currency. If this occurs, these metals could skyrocket in value, presenting one of the biggest profit opportunities of a lifetime.
Joseph Allen, the General Partner of PCA
