Eastern Demand Unabated
WGC yesterday predicted China would exceed 1000t in gold imports this year. That is an all time record. Further, yesterday China’s central bank announced new rules that would make it easier for more banks and the public to buy more gold. In India, despite the headlines grabbed from the decline in “official” imports after import restrictions, in talking to suppliers and others it seems clear there is no let up in the demand especially in the lead up to the wedding season, Diwali etc, through other channels. The Indian Government’s desire to get gold imports off its official trade figures is working but it continues to flow in through other channels unabated. All this while Comex inventories have plummeted. The shift from weak speculative hands to strong long term holders of physical continues strongly and could be setting up a fundamental shift in the market.