Rule: “He would know better than I with regard to Hong Kong demand, but certainly we’ve seen very strong physical demand from around the world. A lot of the physical demand has taken place right here in the United States.
What’s interesting about his (Kaye’s) statement is the dichotomy between the private physical markets and the long-term markets. I can’t help going back to an announcement about 12 months ago, when the Germans wanted to repatriate their 1,500 tons of gold, and they were told by the US government that it would take seven years (to get back only 300 tons of gold) that was theirs.
At the same time, over 30 days, in the physical market, Chinese retail buyers bought and took delivery of 1,120 tons of gold. One of the things that this points out is the very, very odd dichotomy between central bank and multilateral institutional holdings of gold, and the paper gold market on one side, and the honesty of the physical market on the other side.
My suspicion is that the physical market is prevailing and will continue to prevail over the paper market. And the subtext of this is that the documented large (gold) short positions that exist in the paper market may get their long awaited religious experience as they are unable to deliver against futures obligations.”
at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/2/15_Gold_Shorts_To_See_A_Massive_Squeeze_As_They_Fail_To_Deliver.html
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