Tuesday, August 20, 2013

Gold Is Flooding Out Of London To Switzerland At An Alarming Rate

"Submitted by Mike Krieger via Liberty Blitzkrieg blog,

This is one of those stories about the gold market that almost seems too wild to be true since the numbers are so extraordinary. According to a Reuters article from earlier today, Australian bank Macquarie has reported that gold is flooding out of London and into Switzerland at a mind-boggling rate. Specifically, 240 tons were exported in May alone and 797 tons during the first half of 2013. That means gold is being exported at a annualized run rate of 17x the 92 tons exported for all of 2012. That’s insane.

Moreover, it seems a lot of that gold is being sent to Switzerland so that the 400oz bars can be melted down into different sizes that are more amenable to Asian sensibilities. So, as many of us suspected all along, what has happened is lobotomized Westerners have sent much of their gold to Asia just as the financial system prepares to melt down again. The fact that the market has absorbed all of this and yet we still have a backwardated market is extremely bullish..."

at http://www.zerohedge.com/news/2013-08-20/gold-flooding-out-london-switzerland-alarming-rate

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