Written by Mark Yaxley, General Manager, Strategic Wealth Preservation.
Although gold and silver both experienced a bit of a dip this week, retail demand for physical products remained strong, and both metals performed well month-over-month. Gold is up $20/oz since April 1st and silver is up nearly $1/oz.
But perhaps the biggest news, aside from Scotia Bank announcing it will be closing its metals trading desk as of 2021, is that the supply chain is starting to show signs of improvement.
Supply Chain and Product Availability
Most best selling products remain on 3-5 week delivery schedules, but the good news is that the delivery delays are not getting any longer. If anything, delay times are actually improving slightly. Product is flowing and SWP has been taking daily deliveries of orders placed in March and April from our suppliers. We are expecting to receive a large delivery of silver in the coming days as well.
PAMP Suisse products are once again available in the North American market, and secondary suppliers like the Scottsdale Mint are doing a fine job of keeping up with demand and filling orders within their promised delivery times. Alternatives to the popular Royal Canadian products are available, so speak to our traders for suggestions.
FedEx, who had limited deliveries in some jurisdictions to essential goods in recent weeks, seems to be loosening those restrictions and are able to begin delivering precious metals once again. All in all, we’re encouraged by the supply chain situation.
Premiums
Product premiums remain high, but are also showing signs of improving (i.e. they aren’t going up). Based on current demand, and the extended closure of the Royal Canadian Mint, I do expect them to remain high for the foreseeable future. Deal hunters will be dissapointed.
Understanding the Platinum Group Metals
We’ve just published a special edition of our Inside The Vault video series on YouTube, that takes a deep dive into the world of the Platinum Group Metals (PGMs). PGMs are used primarily for the production of catalytic converters, so we visited a local garage in the Cayman Islands to learn more about these fascinating precious metals and the role they play in keeping our planet green:
Platinum, Palladium and Rhodium in Catalytic Converters.
Mark Yaxley
Email – my@swpcayman.com
Twitter – @SWPGold
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Mark Yaxley is the General Manager for Strategic Wealth Preservation (SWP), a premier offshore precious metals dealer and storage facility located in the Cayman Islands. Following the completion of his studies at McGill University, Mark joined world-renowned Kitco Metals, serving as their Product Development Manager and Product Marketing Manager from 2006 to 2013. Mark joined Strategic Wealth Preservation in 2014, focusing on the diverse needs of SWP’s high-net-worth clients. He can be reached at my@swpcayman.com
This article was originally posted in the Strategic Wealth Preservation Blog and copied here with the permission of the author.
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