Crunch time – where’s the gold?
A picture paints a thousand words and the graph below shows exactly what’s happened to outflows of the paper gold market this year. Now let us remind you that all of these outflows have been snavelled up by purchases of physical gold. China, India, Russia, etc have set records in purchasing physical gold. Bill Holter put it beautifully that it’s like a ‘Going Out of Business’ sale by the west and the east is snapping up the bargains. Crunch time will be when there is a failure to deliver when there is no more left. The graph goes to July, right now there is only about 20t of Comex registered gold! Germany’s (Bundesbank) failed request for their gold from the US gave us a glimpse of this and look at the trend since then below. What appears clear is these gold prices (and silver prices) aren’t real but supply and demand always prevails.