Where’s all this cheap gold going?
We’ve discussed previously the flow of physical gold from LBMA (ETF’s and Futures) to Switzerland to Hong Kong so where does it go from there? Well this week saw the announcement of yet another, but the biggest yet, vault in Asia. Malca-Amit Global opened a 2000t capacity gold vault in the free trade precinct (like a little Hong Kong) in Shanghai. In the last year we have seen a number of vaults open across Asia as the East buys up all this ‘going out of business sale’ gold out of the west. This is clearly a strategic move for Asians to keep their gold out of the traditional Swiss or London (ala Western) vaults. When this precarious global situation collapses they will hold the gold and you know the saying – ‘He who holds the gold makes the rules’. In Brisbane we recommend Reserve Vault for independent secure storage of your precious metals.