Physical Sales Surge, as Paper Prices Plummet [8]
Written by Nathan McDonald (CLICK FOR ORIGiNAL) [8]
People are scared, the market is uncertain and the world is for all intents and purposes in a constant state of turmoil and flux.
The tragedy is France has spurred the government to go on the offensive against ISIS, leaving many to wonder what the ramifications of these events will bring. The turmoil in Greece is once again rearing its ugly head, as the country faces default all over again and global markets around the world are suffering.
This is exactly the type of market conditions that gold typically favors, yet despite this fact, the paper price of both gold and silver have been repeatedly beaten lower. Part of this is sheer manipulation of the bullion markets, which are highly corrupt, the other is because the dollar continues to grow in strength as the herd foolishly looks at it as a safe haven. They couldn't be more wrong.
As previously stated, you would think gold and silver would be moving higher. What you need to remember in times such as these, is the fact that there is two markets in precious metals. The highly corrupted artificial paper market, which currently drives the spot price; and the real, hold in your hand honest physical market.
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These two markets SHOULD be moving in tandem, but as many of you know, they are horribly at odds with each other. Despite the crackdown on the paper price of precious metals, the physical market has continued to see massive sales.
The spread between spot and physical continues to widen. Anyone who attempts to buy the real physical metal and have it delivered to your location will quickly begin to understand how out of line these two markets have become.
The US Mint backs this story, stating that the sales of its ever popular US Gold Eagles surged [9] by 400,000 ounces last quarter.
Typically this demand has been from the East, as they are deeply linked with precious metals and know its true value in times just such as these. Ironically, this is not the case, as most of the surge in demand has been originating from the United States.
The World Gold Council has reported [9] that the demand for gold coins and bars exploded by 207% in the last quarter, perhaps signalling that investors are finally starting to see the writing on the wall.
Fundamentals are screaming for precious metals to move higher, but manipulation and the strength in the bogus fiat dollar have kept prices from moving up.
Regardless of these actions in the short term, this should be viewed as just another sale and a chance to add further to your position in anticipation of the eventual move higher.
Please email with any questions about this article or precious metals HERE [10]