It appears that the multi-market price smash of this past week is also destined to be intentionally ignored by both the CME and the CFTC, save for the braggadocios press release from the CME and some not so reassuring words from Commissioner Chilton that the agency is ”looking into it.”
While April has not been completed, with a bit more than a week to go, the sales reports again beat all previous years. We have created the following overview which shows the sales of the US Mint gold and silver coins year-to-date. Physical gold and silver demand is on fire and has been accelerated this week with the gold and silver price drop.
The list of evidence and testimonials of an explosion in PHYSICAL gold and silver demand keeps on growing. Here is now the President of the Chinese Gold & Silver Exchange Society, who testifies on Bloomberg that their exchange is sold out of gold bullion. The delivery time is increasing as they rely on shipments out of Switzerland and London.
In the past couple of weeks there has been an accumulation of worrying economic indicators, to say the least. This short article provides an overview. Is it a coincidence that gold and silver crashed, just like in the summer of 2008?
This article is based on the Outlook Report from Global Gold in Switzerland, written by Claudio Grass. It provides a fundamental view on gold, not a short term price forecast. However, it takes into account the recent gold price decline and other major events.
The demand in the physical market is unprecedented. Because real-time reporting about physical gold and silver purchases does not exist, we need to rely on what bullion dealers are reporting. The picture is highly consistent and reveals the price crash side effects.
Although the hardest asset of them all, it has always been one associated with emotions. A lot of people have a kind of a love/hate relationship with gold. But if even the Nobel price winner for economics evokes so much controversy about his theory and the real function of the oldest of all assets, then it mostly proves us that gold is the most misunderstood of them all.
It feels to me that this move was designed to scare off weak hands and pull it into the official part of the system to cover the leasing. And the best way to get something from someone is to convince them that they should not want it.
From a longer term perspective, I would give it some time. We may go lower. I am not worried. I am happy gold is finally coming down, which will provide a very good entry point.
All we need to do is to use our common sense to consider that if manufacturing is robust, there is a real demand for the raw materials, commodities, natural resources, etc., used to create those goods or products. When I see Dr. COPPER going one way, DOWN, and I see the equity markets going the other, UP, I know something is terribly, terribly wrong.
Today, another astonishing figure hit the wires. This time it is Dubai who announces a staggering $ 70 billion of gold traded in their Dubai Multi Commodities Centre in 2012. China announced that 97.106 tonnes were imported in February 2013. To us, this evolution simply explains that gold is leaving the West and is massively hoarded in the East.
Let us be very clear on this. The Central Bank of Cyprus today announced openly and officially that no talks are ongoing about this subject. What does it tell about the reliability of news coming out of mainstream media related to gold? Correct, the mainstream media simply do not understand the gold market, set aside the dynamics within the precious metals market.
Instead of being suckered into holding intrinsically worthless paper assets, a more intelligent and well-informed response favours increasing one’s personal stockpile of physical precious metals. In addition, it is important to keep some of your assets out of the main stream banking system. Not only should you accumulate gold and silver you should also open an offshore bank account.