Needless to say I took a lot of flak over the past week and a bit given current love of precious metals. The prices got smacked and in all fairness people called me on reccomendations to buy metals id made. To those people I remind you that I always said these were long term (3-5 years min). Regardless its not fun if you bought something and it goes down in price by 20% overnight. So the question is, Am I wrong in my investment philosophy? Im not going to launch into a debate about the fundamentals of the world financial system im just going to take an extract from one of my daily newletters and ask a question.
Why are the only people “selling gold” not actually selling physical metal but selling paper contracts on a futures exchange?
Hong Kong: The Chinese Gold and Silver Exchange — a century-old institution — nearly ran out of bullion Friday. It awaits deliveries from Switzerland and London… on Wednesday
India: “My sales are 50% more than last year,” a dealer in Mumbai’s Zaveri Bazaar tells Reuters, “and we expect good business to continue as weddings will last till July”
Thailand: Many gold shops have closed temporarily. “I took this chance to make minor renovations instead of opening the store only to lose more cash,” one owner tells the Bangkok Post. “Since the week began, the sharp fall in gold prices prompted people to rush to the shop to buy gold. Our gold bullion is out of stock and we are not going to place orders until the global prices settle”
South Africa: Krugerrands are subject to a “massive, massive buying spree” in the words of Glenn Schoeman, chairman of the South African Numismatic Dealers
Australia: “It’s just like the sales after Christmas,” says Nigel Moffatt at the Perth Mint
Dubai: Coins and bars alike are in short supply: “It has become increasingly clear over the course of the past week that the fall in the gold price was triggered by speculative traders operating in the futures markets,” says Aram Shishmanian, CEO of the World Gold Council.
If you want to sell your metal let me know. If I dont have the money for it I know plenty of people who do.
– P
From → Financial
paulfcannell 