We have no other word to express our initial reaction to the first chart in this month’s report.

Over the past 14+ years, metal markets have come full circle.

In 2007, inventories were at rock bottom, and the Base Metals Barometer Price Index stood at a record high.

The following year, 2008, saw the global financial system nearly collapse, with excess metal inventories pouring into exchange warehouses, and metal prices going into a freefall.

Today, we are on the other side of that same coin, with inventories down 75% from the 7.7 million metric tonne high in 2013, and prices now moving up.

At present, there are many distractions in our markets, - economic, political, QE/QT, a strong dollar and several others.

But the writing is on the wall.

Don’t let the market get away from you.

Given the current state of global affairs, it is not inconceivable to think that gold will see a new record high.

John E Gross

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