Informed, senior sources at the highest level of the gold bullion industry have told us that there is “panic” in the inter bank or institutional gold market. According to the sources one of whom is from a leading Swiss gold refinery, we are in a “unique trading climate” that they have never seen before. This is not just due to Brexit but to “a number of factors” and so is likely to continue even after the Brexit referendum.

The market is subject to absolutely “unprecedented conditions” and a degree of illiquidity and “supply issues” not seen even in the immediate aftermath of September 11th, Lehman Brothers and the height of the Eurozone crisis.

Refineries and mints are being advised that bullion banks may take the unprecedented step of “suspending the trading of physical gold.” Premiums have risen on larger orders creating the situation where spreads are higher on larger orders. An example of this is that a 1,000 ounce order worth $12.66 million at current prices is trading at a premium of $0.33 per ounce over a smaller order of 500 ounces.