Something's gotta give

Gold is back above $900 this morning after word of the "coordinated rate cut" from the Fed, European Central Bank, Bank of England,

Of course, that's the COMEX price we're talking about.  You want the real thing to hold in your hand, you'll have to pay more.  And you'll be waiting weeks for delivery.  If it's even available at any price.

You want a half-ounce American Eagle?  A quarter-ounce?  Like a Chicago Cubs fan, you'll have to wait till next year.  You want the one-ounce variety?  They're still being rationed to dealers.  (Or as the U.S. Mint prefers to say, dealers have been put "on allocation.")  One major dealer won't even try to sell you a one-ounce Eagle right now.  Or a one-ounce Canadian Maple Leaf.  Or a one-ounce Krugerrand.  A note to customers on its website apologizes "for any delays in order fulfillment which are a result of production and delivery delays imposed by certain mints and by our suppliers."

There's no longer a disparity between the "paper price" and the "physical price" of gold.  It's a yawning chasm.  If gold is basically unavailable unless you buy a very small quantity at your neighborhood coin shop or a very large quantity in the form of bars, does a COMEX gold price just above $900 make any sense?  One expert tells CNBC that something's gotta give… and when it does, the paper price could double in very short order.

Hmmm… Sounds like something we've been saying around here for a while now.