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Gold: Physical Demand Vs Paper Supply

Posted By admin On July 22, 2013 @ 5:37 am In Money Watch | Comments Disabled

Zero Hedge [1]
July 22, 2013

From the huge demand for physical gold from Asia to repatriation demands, and from the draining of COMEX gold inventories [2] to the excess supply of paper gold, there is an increasing ‘gap’ between the perceived ‘price’ of gold and the cost to get one’s hands on the precious metalSantiago Capital’s Brent Johnson [3] provides a brief but complete summary of the various conundra (which we have described in detail [4]) occurring currently in the manipulated metals market. Perhaps the most telling phrase comes towards the end when Johnson notes, “I don’t know how to say ‘Hunt Brothers’ in Mandarin, but it might not be a bad idea to learn.”

Chinese demand for physical gold has been surging…

Gold: Physical Demand Vs Paper Supply 20130721 santiago1 0 [5]

“I don’t know how to say ‘Hunt Brothers’ in Mandarin, but it might not be a bad idea to learn.”

Gold: Physical Demand Vs Paper Supply 20130721 santiago2 0 [6]

as it seems highly coincidental that so much is being drawn down as China’s demand rises…

Gold: Physical Demand Vs Paper Supply 20130721 santiago3 0 [7]

Regardless of the derivative inventory, the fact remains the demand for physical gold from China alone is a huge percentage of global YTD production

Gold: Physical Demand Vs Paper Supply 20130721 santiago4 0 [8]

“And I’m willing to bet that there are some other people in the world that wouldn’t mind having some gold as well.”

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URL to article: http://www.prisonplanet.com/gold-physical-demand-vs-paper-supply.html

URLs in this post:

[1] Zero Hedge: http://www.zerohedge.com/news/2013-07-21/gold-physical-demand-vs-paper-supply

[2] the draining of COMEX gold inventories: http://www.zerohedge.com/news/2013-07-19/jpm-eligible-gold-plummets-66-one-day-total-gold-fresh-all-time-low

[3] Santiago Capital’s Brent Johnson: http://www.zerohedge.com/news/2013-07-16/gold-tale-two-markets

[4] which we have described in detail: http://www.zerohedge.com/news/2013-07-16/things-make-you-go-hmmm-gold

[5] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/07/20130721_santiago1.jpg

[6] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/07/20130721_santiago2.jpg

[7] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/07/20130721_santiago3.jpg

[8] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/07/20130721_santiago4.jpg

[9] Record High Demand For Physical Gold Threatens To Break The Back Of The Paper Gold Market: http://www.prisonplanet.com/record-high-demand-for-physical-gold-threatens-to-break-the-back-of-the-paper-gold-market.html

[10] Gold at EUR1,000/oz – Strong Physical Demand Leading To Illiquid Conditions: http://www.prisonplanet.com/gold-at-eur1000oz-strong-physical-demand-leading-to-illiquid-conditions.html

[11] 10 Signs The Takedown Of Paper Gold Has Unleashed An Unprecedented Global Run On Physical Gold And Silver: http://www.prisonplanet.com/10-signs-the-takedown-of-paper-gold-has-unleashed-an-unprecedented-global-run-on-physical-gold-and-silver.html

[12] Retail Demand For Gold Is Going Nuclear In Asia And Shops Can’t Keep It On Their Shelves: http://www.prisonplanet.com/retail-demand-for-gold-is-going-nuclear-in-asia-and-shops-cant-keep-it-on-their-shelves.html

[13] Chavez Nationalizes Venezuela’s Gold Industry, Recalls Hundreds of Tons of Gold Held Abroad, May Cause a Scramble for Physical Gold From JP Morgan and Others: http://www.prisonplanet.com/chavez-nationalizes-venezuelas-gold-industry-recalls-hundreds-of-tons-of-gold-held-abroad-may-cause-a-scramble-for-physical-gold-from-jp-morgan-and-others.html

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