"The End of the Paper Gold Era": The Truth Behind the London Vaults' Emergency

2026-01-20 01:40:20

Source: TokenPost Original Title: [Market Analysis] “The Era of Paper Gold Has Ended”… The Real Reason Why London Vaults Are Emptying Original Link: Unprecedented cracks are forming beneath the surface of the global financial markets. While news reports daily about gold surpassing $4,700 per ounce and silver breaking $90, the real players on Wall Street are watching another “terror indicator.”

This is not just about inflation hedging. The financial system we have known for the past 50 years — dominated by “paper assets” — is collapsing, with mounting clear evidence emerging.

The most shocking data comes from the futures market. Typically, when gold futures contracts expire, less than 1% of investors actually demand physical delivery of gold. Most settle in cash. But since 2025, the proportion of physical delivery demands for specific contract months has reached 100%, an unprecedented abnormal phenomenon.

Such a situation has never been seen before in history. This indicates that market participants’ confidence in paper gold is collapsing, and they are beginning to demand physical delivery on a large scale. Meanwhile, the inventories in London vaults are gradually running out.

What does this reflect? A deep systemic issue — confidence in traditional paper financial assets is eroding, and physical precious metals are becoming an increasingly popular safe haven for institutions and high-net-worth individuals. The rising prices of gold and silver may just be the beginning of this larger transformation.

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