Strange days are now upon us…
In January, physical bullion sales were astronomical and it was affordable for the most part the buyers were excited for the rise of the numbers. Now with the USD strong why are we seeing the same pattern, gold is dropping in value, yet buyers are fanatically buying the physical bullion up. In fact, more physical gold was sold in September than in October of 2013. Despite the current luxury tax, China and India are back buying the physical bullion. Reports show high demand of a 30% increase, possibly due to the current holiday in China and festival in India that is about to take place. Manipulation of the markets may be taking place by common interests and this is said to be a general rule to move the market in a direction that is beneficial to the parties involved. I say this because the buying power of gold shows strength, yet the price is decreasing daily. This is really only with the USD, if you look at other currencies you do not see the price of gold as low, worldwide the price and demand for physical gold is still very strong.
If you look at the weekly reports from SGE vaults, they withdrew 50.3 tonnes in week 38, the demand is that high. Silver in London is declining while Shanhi (WPSE) leveled out without decline at SHFE, SGE vs. COMEX. What reports you compare determines the information you receive, reports like OTC tend to lag and COMEX can only give us so much. Seems that the world Gold Counsel would like us to think that the gold demand is low. Just like the U.S. government would like us to believe the USD is strong and that we’re not in a recession let alone a depression. Gold and metal trading has kept many traders afloat in times of uncertainty. If you are not yet trading metals, now is the time to start.
Cheers Friends.
