Bob Coleman: Institutions Fuel Physical Premium Surge Amidst Tariff Worries

In this episode, Tom Bodrovics welcomes back Bob Coleman during Trump's second term inauguration when markets are closed. Bob discusses significant developments concerning Exchange for Physical Premiums (EFPs) in precious metals markets. The increasing EFP premiums stem from tariff concerns since Trump's campaign days, causing New York futures selling and London physical buying, creating a spread between the spot price and futures price. Trump's rhetoric on fair trade and potential tariffs could impact the 'product of origin', potentially affecting short positions expecting delivery to exchanges and could lead to major losses.

Bob also touches upon the lack of retail interest in gold and silver markets despite their proximity to all-time highs due to changing consumer demographics, unregulated industry practices, and misleading sales tactics. He further discusses potential implications of tariffs on precious metals markets and the shift towards physical metal becoming a more price-dominant theme.

Additionally, they explore the impact of investor behavior and supply constraints on platinum and potential implications of the U.S. administration's involvement in cryptocurrencies. The conversation also highlights increasing demand for precious metals during the Democratic administrations due to concerns over spending and taxes, potential effects of tariffs on the financial system and gold market, volatility in the economy, and central banks' actions as significant themes for 2025, and the possibility of creating stablecoins backed by precious metals.

Talking Points From This Episode

Time Stamp References:
0:00 - Introduction
0:38 - Trump, Trade & EFP
5:22 - Tariffs & Origins
10:28 - 50+ Year EFP Chart
17:30 - EFP Premiums & Covid
20:14 - Retail Precious Metals
25:45 - Gold & Silver EFP?
29:15 - Platinum Markets
33:18 - Metals Vs. Meme Coins
37:10 - Crypto Credibility
39:37 - Monetary Restraint
44:55 - 2024 Physical Demand
47:13 - U.S. Tariffs & C.B. Gold
50:07 - Uncertainties & Wrap Up

Talking Points From This Episode
- Tariffs drove up EFP premiums in precious metals markets during Trump's second term, leading to significant losses and tightened liquidity.
- Changing consumer demographics, industry practices, and sales tactics decreased retail interest in gold and silver markets despite high prices.
- Potential tariffs, investor behavior, supply constraints, and U.S. involvement in cryptocurrencies influenced precious metals markets and trends for 2025.

Guest Links:
Twitter: https://twitter.com/profitsplusid
Website: https://www.goldsilvervault.com/
Presentation: https://www.goldsilvervault.com/blog/deciphering-the-complex-world-of-precious-metal-derivatives-ucits-and-the-shift-from-physical-to-paper-gold-silver

Bob Coleman is a Registered Investment Advisor since 1992. In 2001, he founded Profits Plus Capital Management, LLC (RIA) and Dollars and Sense Growth Fund. Recognizing the necessity for physical metal storage, he founded Idaho Armored Vaults and Gold Silver Vault in 2008. They are a distinguished and respected leader in the precious metals industry specializing in storage, transportation, shipping logistics, and security.