The key thing is the physical wholesale markets, and I’m seeing the same thing now. I’m not seeing any letup in physical demand. The central banks, the sovereigns, they were buying at $1,800, $1,700, $1,600. But when you take a dip to this kind of level where we actually start to approach break-even cost of mining (gold), well, obviously that was an act of desperation (on the part of central planners).
As Russia, or China, why not just pick it (gold) up and ship it over? It’s quicker (than mining it). So you’ve reached a point where the lines cross, and the physical market diverges. I have checked the numbers now and we are very close to 1,000 tons of deliveries just this year into Shanghai.
Read the complete article at King World News here.
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