The World Is Suddenly Desperate For Physical Gold & Silver | Andy Schectman

Gold has experienced a major upwards repricing in recent years.

It's up nearly $1,000/oz over the past two years.

And in just the past year alone, it's up 35%, handily outperforming the S&P's return of just 13%.

Some say gold is quite overbought after this big run. Others say it's just getting started, and that far higher prices lie ahead due to the ongoing loss of purchasing power of the US dollar and other world fiat currencies.

Which is more likely?

For a "boots on the ground" report on all things gold, we welcome precious metals dealer Andy Schectman, CEO and co-founder of Miles Franklin, to the program for the first time..

Andy reports that amidst the current wild action in the gold market, he's seeing global demand for physical at higher levels than he's ever witnessed before in his decades-long career.

To learn what’s driving this, click here or on the video below.

FYI: if you’re looking to purchase bullion online, Thoughtful Money recommends Miles Franklin, co-founded, owned and operated by Andy. The firm has been in operation since 1989, and is a full-service precious metals broker with a mission to educate the masses on the benefits & principles of sound money and deliver fair pricing. It has an A+ rating from the Better Business Bureau.

Given the important of the partnership between Thoughtful Money and his firm, Andy himself has offered to give Thoughtful Money followers the “white glove” treatment. So if you’re interested in learning more about their services, email them directly at info@milesfranklin.com and Andy or one of his lieutenants will give you personal attention, answer all your questions and work to get you the products that best meets your needs at the best possible price.

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Adam’s Notes: Andy Schectman (recorded 3.9.25)

EXECUTIVE SUMMARY:

• A historical shift in U.S. gold trade dynamics began in November 2023, as the country transitioned from being a net exporter to a net importer of gold and silver. Traditionally, gold flowed eastward from Western vaults to countries like China, India, and Russia, but now the trend has reversed. Since this shift, the U.S. has imported between 15-20 million ounces of gold and 40-50 million ounces of silver, primarily from London. This surge in imports is highly unusual and suggests that powerful entities within the U.S., potentially government agencies, financial institutions, or sovereign buyers, are aggressively accumulating physical metal.

• February 2024 marked the largest physical gold delivery in the history of the COMEX exchange, with 59,296 contracts (equivalent to 5.93 million ounces) standing for delivery. This exceeded the previous record by 1.2 million ounces. Silver deliveries also reached record highs, with approximately 15 million ounces demanded for physical settlement. JP Morgan, a major bullion bank, delivered an unprecedented $4 billion worth of gold to COMEX in February alone, raising questions about which major institutions or entities are behind these massive purchases. The sheer scale of these deliveries implies that well-capitalized and well-informed players, such as sovereign wealth funds, central banks, or billionaires, are urgently acquiring gold and silver.

• The London Bullion Market Association (LBMA), historically one of the world's most trusted gold trading hubs, is experiencing severe stress in its ability to meet physical delivery demands. Settlement times have ballooned from the usual T+1 (one-day delivery) to T+8 weeks, a strong indicator of supply constraints. LBMA officials claim this delay is due to logistical challenges such as a shortage of trucks and manpower, but analysts suspect a deeper issue: potential over-leveraging and rehypothecation of gold reserves. Official records show that London has 279 million ounces of silver stored on paper, yet only 36 million ounces are physically available for delivery, highlighting a dangerous level of overextension that could result in a market breakdown if too many investors demand actual metal instead of paper claims.

• A striking pattern has emerged in recent years as