Those wily orientals and camel jockeys wouldn’t be accumulating gold in preparation for a breakdown of the worldwide USD dominated currency system. Would they? Naw. We are America, the greatest empire in world history. No one crosses us. We’re smarter than all those foreigners. Who else could increase their debt by $3 billion per day and get away with it? And if you have a problem with that, you’ll get a few cruise missiles across your bow. Buy stocks. Wall Street assures you its safe. Stay away from that barbaric relic. It’s not money. The $3 billion of new green colored paper that Bennie and the Inkjets print every day are the real money. Got it?
The difference in the changes between gold and silver inventories is interesting.
I suspect that a great deal of the gold that has been lost this year has been repurposed to private ownership in China, the Mideast, and India among other places.
Although I do not show them here, Palladium and Platinum look much more like silver than gold.
Most of the conventional, off the cuff explanations do not seem to hold together under serious scrutiny. Yes, silver is ‘poor man’s gold,’ but Platinum certainly isn’t. And an aversion to paper gold, but not to paper silver?
Gold seems to be somewhat different, even unique, with a large amount of physical inventory leaving the West.
Overall about 811 tonnes of gold have been withdrawn from inventory, while 1,434 tonnes of silver, 21 tonnes of platinum and 1.5 tonnes of palladium were added to these same types of ETFs and funds during 2013.
A remarkable short squeeze on gold bullion supply might occur if the price of gold breaks out, stimulating more investment in these ‘paper gold’ instruments.
The data for these charts came from Nick Laird at ShareLynx.com.