What Basel III Broke: Physical Metals, Vault Risk, and the End of Pooled Accounts
In this interview with Palisades Gold Radio, I break down how Basel III is disrupting metals markets, why unallocated storage is becoming toxic, and where smart money is moving as the system shifts.
We’re seeing EFP premiums for gold and silver blow out—again—and I want to walk you through exactly what’s happening. This isn’t just market noise. Gold’s EFP spread has jumped over $60, silver’s pushing a full dollar—and that kind of dislocation between COMEX futures and London spot isn’t normal. We saw something similar back in March 2020 when COVID shut down refineries and broke logistics.
Now? It’s tariff fears. Dealers are scrambling to secure physical metal before trade restrictions hit, and that rush is driving premiums higher—across the board. If you’re wondering why your retail products cost more or why these spreads matter, this video breaks it down. I’ll explain how the Exchange for Physical works, why this divergence is a red flag, and what it signals about real supply strain in the system.
Straight Talk from the Vault:
- Silver’s Setting Up: Specs have backed off, and that’s a good thing. It clears out the noise and sets the stage for physical to drive price.
- Platinum’s No Fluke: South Africa’s supply issues are real, and industrial demand hasn’t let up. It’s a slow-moving squeeze most aren’t watching.
- Basel III Changed the Rules: The banking system doesn’t want unallocated exposure anymore. That has huge implications for ETFs and pooled accounts.
- Unallocated Means Risk: If your metals are held in someone else’s pooled account, you’re exposed. Full stop.
- Clients Want Control: I’m seeing it firsthand—more people are moving into segregated, direct vault storage. They’re done trusting the system.
- COMEX Is Just a Signal: It’s not a true reflection of supply and demand—it’s money flow, algo churn, and managed money games.
- Inflation’s Baked In: The headlines may shift, but structurally—energy, debt, geopolitics—it’s all inflationary. Don’t be fooled.
- Hard Assets Over Digital Promises: When the system resets, I’d rather have metals I can touch than digits that can be frozen.
Charts Discussed:
Time Stamp References:
0:00 – Introduction
0:32 – Silver & Recent Moves
4:58 – 2025 Open Interest
7:51 – Banks & Big Buyers
11:00 – Platinum Outlook?
14:10 – Shorts & Supply
18:10 – Inflation & Deflection
22:07 – Platinum Tariff Exempt?
23:58 – Basel III Details
28:13 – Stablecoins & Tether
34:48 – ECB Gold Mkt Warning
37:19 – Cad Mint Storage Terms
40:45 – Retail Bullion Demand?
46:02 – Manipulation Concerns?
49:53 – Biggest Market Movers
52:38 – Long-Term Big Picture
53:40 – Wrap Up
Meet the Author
Bob Coleman, with a successful career in investment and portfolio management since 1992, is the founder of Idaho Armored Vaults and Profits Plus Capital Management, dedicated to providing secure and comprehensive solutions for precious metal investment and storage, emphasizing transparency, risk mitigation, and client-focused service.
BOB COLEMAN
President
(208) 468-3600
[email protected]