Loading ...Is it true the sell off in the metals today is due to Japanese and European bondholders ( Long term yields are exploding higher) having to sell Gold, to meet margin requirements and to raise much needed cash………
Answer:
Yes — there’s growing evidence that some of today’s pullback in metals — particularly gold and silver — is driven by forced selling from bondholders in Japan and Europe.
📉 What’s driving the metal sell-off?
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Long-term yields are spiking
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Japan’s 30– and 40-year bond yields have recently reached multi-decade highs (around 3.4–3.6%) after dismal auctions and sell-offs from insurers cutting losses goldbroker.com+15goldseek.com+15reddit.com+15.
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European long-term yields (e.g. German bunds) have also climbed, due to fiscal spending concerns .
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Margin calls and liquidity crunch
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Bond investors—especially insurers and pensions—are experiencing large mark-to-market losses, prompting margin calls and cash needs. Many are selling assets to generate liquidity theguardian.com+3harveyorganblog.com+3reddit.com+3.
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Sale of gold to raise cash
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When facing margin calls or redemptions, investors often liquidate the most liquid assets first—gold and silver are prime candidates goldseek.com+15reddit.com+15reddit.com+15.
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Similar dynamics occurred in 2024, when a sudden yen rally triggered broad deleveraging that hit precious metals economies.com+4ainvest.com+4theguardian.com+4.
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✅ In summary:
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The bond market rout is squeezing institutional holders, forcing them to sell across portfolios.
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Liquid assets like precious metals are being dumped to free up cash.
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Thus it’s not just weak demand for gold—it’s forced selling to meet margin/cash needs.
💡 What to watch next
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If bond yields continue to rise and pressure mounts on bond portfolios, metals could face further near-term weakness.
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However, once the selling subsides, gold and silver often rebound as they resume their role as safe-haven assets.