Delays and volatility squeeze bullion trade

The bullion market is under pressure, and the effects are beginning to ripple through both dealer networks and collector behaviour. In the latest issue of Canadian Coin News(V64N02), released March 31, industry veteran Michael Findlay outlines how volatility, tightening liquidity and refining delays are reshaping the way gold and silver are bought and sold.

While price swings have dominated headlines, Findlay argues the real story lies beneath the surface. Forced selling driven by margin calls is pushing investors to liquidate bullion, often reluctantly, as it remains one of the most accessible sources of cash in uncertain markets.

At the same time, broader economic concerns are clouding the traditional role of precious metals as safe havens. Ongoing geopolitical tensions and supply chain uncertainty have led some investors to question whether gold and silver can still provide the stability they once promised.

More concerning, however, is a growing bottleneck in the refining sector. Extended processing times at major facilities are tying up dealer capital for months, creating a cascading effect that is tightening liquidity and forcing adjustments across the marketplace.

Those pressures are already being felt at the retail level. Dealers are lowering buy prices for silver, in some cases significantly, while demand continues to shift toward higher purity bullion products such as Maple Leafs and one ounce coins.

Despite the strain, Findlay sees this as part of a familiar cycle. With prices stabilizing and signs of consolidation emerging, he believes the market may be nearing a turning point. For dealers and collectors alike, the message is clear: adapt, manage risk and prepare for what could be the next phase in the bullion market’s evolution.

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