Voltalia Ord Shs VLTAF

Physical Gold Demand

[VentureTrader1]

Although the media's pushing 'the end of the gold era' everything I read says that this selloff's triggered record physical demand both in North America and globally.  Given the limited supply of actual gold, and the lack of any good reason for the huge selloff, and it suggests something unusual might be up.  I'd also point to the accelerating drop in gold held by GLD.  The conventional wisdom on this is that owners of GLD are just selling because they've lost interest, but there's a really credible argument that the reserves are being drained by the participant banks to meet delivery commitments in the physical market.  At the rate it's going, GLD will be out of gold in a few months.  When the paper market finally dies, with limited supply of gold available to the general public (and likely an exploding price) I think the mining stocks will finally go back to being the only available way for retail investors to participate in the next phase of the gold bull market.

 

Might be a while yet, but maybe if the money holds out there's still a chance for Volta.  At any rate, the divergence of paper and physical metals is going to be interesting to watch over the next few months.