While the asswipes on CNBC declare the gold market dead, the reasonable people around the world realize they have just received notice of a 30% off sale. In the last week, virtually no one that has physcial gold or silver in their possession sold it to anyone. Paper gold and silver were sold in the derivatives market. The Big Boys wanted to show us who is boss. They took their best shot. They will probably try again, but there is only so much paper manipulation that can be done. Now it is the turn of the rational people who can see the desperation of this act. The Big Boys are panicked. Their master plan is not working. The debasement of currencies across the globe and Keynesian “solutions” to mountains of bad debt still on the books of the Too Big To Trust Banks has failed to generate an economic recovery. It has pushed the world closer to an epic financial collapse.
Most Americans are oblivious, as they focus on the latest reality show – Find a Bomber in Boston. They are more concerned about who will get kicked off American Idol this week than what is happening in financial markets. Less than 5% of Americans own physical gold. A 30% off sale at Kohl’s would bring in a big crowd. The smart people in the Far East see the writing on the wall. The U.S., Japan and EU will accelerate the debasement of their currencies. Buy when there is blood in the streets. After the last week, there is plenty of blood in the streets.
Gold Buying Frenzy Continues: China, Japan, And Australia Scramble For Physical
Submitted by Tyler Durden on 04/17/2013 08:47 -0400
We noted here that the plunge in the paper price of gold (and silver) had prompted considerable renewed demand for physical and now it seems the scramble among the “more stable investor base” is increasing. The shake out of ETFs and futures has left the Australian mint short of deliverables and Japanese and Chinese gold retailers seeing a “frenzied” surge in demand. The customers are not just the ‘rich’ or ‘elderly’; in China “they tend to wear water shoes and come directly from the market…;” in Australia, “the volume of business… is way in excess of double what we did last week,… there’s been people running through the gate,” and Japanese individual investors doubled gold purchases yesterday at Tokuriki Honten, the country’s second-largest retailer of the precious metal. The panic selling by a weaker ‘imminent inflation-based’ investor base has sparked physical shortages – “there’s been significant sales made as people see this as great value.” It seems our previous discussions of a rotation from paper to physical were correct and this physical demand will eventually leak back into the paper markets.
Australia (via The Age):
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.”
The Perth Mint’s sales of gold coins climbed 49 per cent to 97,541 ounces in the three months ended March 31 from a year earlier
China (via China News):
Beijing gold store two hours to sell 20,000 grams of gold bullion trading volume of nearly 200 million
and (via YCWB):
People have to rush to buy gold, … gold bullion out of stock yesterday, investors yesterday to spend as much as 600 million yuan to buy 20 kilograms of gold bars
The mad pursuit gold insufficiency is not just a game for the rich. Yesterday, the Yangcheng Evening News reporter learned from the East flowers to Bay store, many growers, pork traffickers, fishmonger recently put down his job went straight to the mall to buy gold.
Japan (via Reuters):
Some Japanese also harbor fears that the expansionary monetary and fiscal policies dubbed “Abenomics”, coupled with a national debt more than twice as large as annual economic output, could trigger a crisis down the line.
Skeptics about the radical attempt to reflate the economy — or those simply worried that a slide in the yen that began in anticipation of Abe’s election victory last December will continue unabated — are still buying gold, dealers say.
“Investors in gold are convinced that Japan’s fiscal position will get worse,” said Wakako Harada, general manager of Japan’s top bullion house, Tanaka Kikinzoku Kogyo.
“What I see at our counter is that more people are getting worried about Japan. That’s why we are seeing a lot of buying.”
“In contrast this time, we are seeing interest to buy on dips to take exposures to gold,”
“Investors are using this opportunity to buy gold to diversify beyond bonds, stocks and the yen currency as Japan’s fiscal situation could deteriorate.”
(via The Age):
Japanese individual investors doubled gold purchases yesterday at Tokuriki Honten, the country’s second-largest retailer of the precious metal.