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Gold Deliveries Into China Soar To 1,000 Tons
Eric King: “Andrew, I’m going to quote you here, ‘If gold were to trade into the low $1,300s, it would be unsustainable for very long.’ That turned out to to be exactly what we saw (in the gold market). Gold drifted into the low $1,300s, it turned around and we haven’t seen that again.”
Maguire: “The reason I was able to make that call is because I saw the huge amount of actual physical (buying) coming through for allocation. Obviously that flies under the radar for paper-centric traders….
“But having seen this vast amount of physical being sought, you realize that it’s physical, one to one. It’s not leveraged. Whereas you are essentially trading against an unlimited synthetic supply of paper gold (in the paper market).
There is a lagging period where you’ve got these vast quantities of fresh leveraged supply coming in versus this unleveraged physical demand. Leverage works in two ways. It also works against the sellers. I think you saw that last Wednesday with what I believe looked like a bottom.
Read More: http://economicrisis.com/gold-deliveries-into-china-soar-to-1000-tons/5600
