About two weeks ago, hundreds, or maybe even thousands of so called “precious metals expert analysts” and “industry gurus” were frantically posting content on Youtube and social media claiming that LBMA ran out of gold to meet delivery demand. Some even warned that an imminent default could happen within days. At the time of posting this article ( 22 Feb 2025 ), the “LBMA running out of gold” noise is slowing subsiding. LBMA is still in operation. Gold bars are still readily available at bullion dealer outlets. So, is LBMA really running out of gold?
Back in 2011, when gold prices hit all time high of $1928, numerous “precious metals expert analysts” and “industry gurus” projected imminent outbreak to astronomical numbers. 5000, 10000, 50000, and the list went on. When prices retreated to the 1200 region in 2014, the same group of people projected that bull market was over and imminent retreat to $500 was inevitable.
The above was just one of the countless number of unrealistic nonsensical performances by these “precious metals expert analysts” and “industry gurus”. They remind us of infamous characters like Victor Lustig (“the man who sold the Eiffel Tower twice”). At the end of the day, they are just after Youtube clicks and advertising revenue, but unfortunately, in an undesirable manner.
The bullion market has rigorous mechanisms in place to cope with extreme market conditions. While short term supply-demand imbalance may result in rise of premiums, LBMA will not run of gold. The bullion banks and dealers are more worried that main street investors run out of cash to purchase more gold bullion bars and coins.
Disclaimer: All content is provided for informational and educational purposes only. Precious metals investments involve financial risk. Readers should conduct their own research before making any investment decisions.
