India, China & Central Banks demand
In 2013 India, China and Central Banks alone consumed 80% of global production. A recent study by ETF Securities shows that in 2014 they are on track to consume nearly 90%. As happened in 2013 we continue to see this build up of gold reserves by the ‘strong hands’ of the East as they bolster their wealth with hard assets as the West accumulates debt at an even more alarming pace.
That demand continues this strongly in the face of tightening production yields without increasing prices demonstrates the disconnect with the western ‘paper trade’ controlled price fix. This last week saw a demonstrable covering of these COMEX short positions by the big western commercial banks. The biggest, J P Morgan both increased its long position in gold and decreased its short position in silver. A sign they are changing sides?