The 'gap'
The growinh dichotomy between real gold and paper bets is incessant.
Hot off the press:
Looks like there may well be another paper futures, massively leveraged paper short attack on silver and gold so be prepared and know it will end badly for the perpetrators. We can only wait to see as the end of the month rolls in. US GLDS ETFs are being emptied of bullion.
While the boys are busy working the paper markets the real action on the physical side undermines them. Today’s news so far:
“There is a massive amount of money coming out of the Gold ETFs – This is weighing on the futures market sharply – but Buying in Asia on the physical is the strongest it’s been in decades… John Paulson, the hedge-fund manager who’s lost money this year after a 16 percent decline in gold, told clients that purchases by central banks and demand in Asia will support the metal in the near term
· Asia is witnessing one of the strongest waves of physical gold buying in 30 years, with bargain hunters using the drop in prices to secure jewellery and gold bars - The feverish buying has left many of Hong Kong’s banks, jewellers and even its gold exchange without enough yellow metal to meet demand. In Shanghai, the gold exchange saw volumes – often seen as a proxy for demand – rising to a record on Monday, while queues formed outside some jewellery shops in Beijing.
· Indians are scooping up every last gold bar they can lay their hands on in the wake of a precipitous plunge in international prices, severely curtailing availability and driving premiums to record levels - Indian retailers are paying premiums of $8-$10 an ounce over the international gold price, currently around $1,425 per troy ounce. That's four or five times the premium for imported gold usually seen in periods of peak demand in India, according to traders - "We have not seen this kind of premium on gold imports in years," said Suresh Hundia, president emeritus of the Bombay Bullion Association.