Maguire - Stunning 650 Tons Of Gold Bought In Takedown

"Today London metals trader Andrew Maguire told King World News that a stunning 650 tons of physical gold has been purchased by sovereigns and central banks during the recent takedown in the gold market.  Below is what London metals trader Maguire had to say in Part I of a series of interviews that will be released today on KWN.

Eric King:  “Since gold exited the $1,300s in the third week of August (just over one month ago), how much physical gold has been purchased by sovereigns and central banks?”

Maguire:  “A good example was yesterday, and that (21 tons of physical gold buying) was slightly more visible because the name was known....

“But if we look at the thousands of tons of of paper gold that has been supplied in the marketplace, an accurate number would be 650 tons (of physical gold purchased by sovereigns and central banks during this takedown in the past month).  We have seen tonnage in the teens being accumulated on a daily basis.

Bear in mind that leverage has a huge effect.  So when you have leveraged paper selling against unleveraged physical buying, then obviously you have a spring being compressed but it’s under the radar until it releases.  And the good thing is we are coming to the point where the physical markets are now migrating to the East, and I think the catchup (in terms of price) is going to surprise a lot of people, Eric.” 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/9/26_Maguire_-_Stunning_650_Tons_Of_Gold_Bought_In_Takedown.html