Wednesday, April 17, 2013

Asian countries buying gold hand over fist as central banks dump paper to drop price

Since last Friday, the gold spot price fell more than 9% as central banks dumped up to 500 tons of paper gold onto the markets.  These actions dropped gold from $1500+ to a low of $130 on April 15.

But even as the Western central banks work to manipulate paper gold prices, Asian countries such as China, Austrailia, and Japan are using this price drop to purchase tons of physical gold, at discounted prices.


Australia:
Gold sales from Perth Mint, which refines nearly all of the nation’s bullion, have surged after prices plunged, adding to signs that the metal’s slump to a two-year low is spurring increased demand.
“The volume of business that we’re putting through is way in excess of double what we did last week,” Treasurer Nigel Moffatt said, without giving precise figures. “There’s been people running through the gate.”
“There’s been significant sales made as people see this as great value,” Mr Moffatt said. “Gold owners are very reactive to significant market movements.”

China:
Beijing gold store two hours to sell 20,000 grams of gold bullion trading volume of nearly 200 million

Japan:
Japanese individual investors doubled gold purchases yesterday at Tokuriki Honten, the country’s second-largest retailer of the precious metal.

In the U.S., many gold and silver dealers such at Kitco have been experiencing buying so great, they have run out of stock, and hiked premiums by more than 50% on physical ounces.  And according to many analysts, this may be the last time to get physical gold and silver before it either runs out, or becomes to price restrictive to purchase.

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