The list of evidence and testimonials of an explosion in PHYSICAL gold and silver demand keeps on growing. Here is now Mr. Haywood Cheung, 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 (additional) shipments out of Switzerland and London.
A quote from the interview: “Demand is much higher than the supply right now. Most of the bullion is sold out right now. Most of our members are short of physical delivery.”
Our key take-aways after hearing the comment in the interview:
(1) Gold is moving in large quantities from the East to the West. We wrote about that extensively. The underlying dynamic is that gold goes where the money is; otherwise stated, gold follows wealth. That is a direct consequence of the destructive monetary policies in the Western world.
(2) It is very likely that the gold price drop was purely manufactured by the paper products (gold & silver futures market). If that is true, than we have once again the confirmation of holding physical gold over paper based products (including futures, options, ETF’s, etc). Besides, with premiums that have exploded this week, the price for bullion owners did not change compared to a week ago (before the price crash); the spot price plus premium stands now at the point for the price crash!