Realcent.org

Gold Buying Frenzy Continues: China, Japan, And Australia Scramble For Physical


"We noted here that the plunge in the paper price of gold (and silver) had prompted considerable renewed demand for physical and now it seems the scramble among the "more stable investor base" is increasing. The shake out of ETFs and futures has left the Australian mint short of deliverables and Japanese and Chinese gold retailers seeing a "frenzied" surge in demand. The customers are not just the 'rich' or 'elderly'; in China "they tend to wear water shoes and come directly from the market...;" in Australia, "the volume of business... is way in excess of double what we did last week,... there’s been people running through the gate," and Japanese individual investors doubled gold purchases yesterday at Tokuriki Honten, the country’s second-largest retailer of the precious metal. The panic selling by a weaker 'imminent inflation-based' investor base has sparked physical shortages - "there’s been significant sales made as people see this as great value." It seems our previous discussions of a rotation from paper to physical were correct and this physical demand will eventually leak back into the paper markets."

http://www.zerohedge.com/news/2013-04-1 ... e-physical

Can the paper price keep falling when there is worldwide high demand for physical? I have been hearing rumors of $1200 gold which might bring silver down to 20 or under. I guess that is possible, but articles like these make me wonder.

http://www.bloomberg.com/news/2013-04-1 ... slump.html

Mark Faber is a guy worth listening to on this topic.

http://www.bloomberg.com/video/faber-says-gold-is-oversold-prices-will-rebound-~B1~oQhxSpudzkkawMc5tA.html

I don't think we will see physical and paper seperate just yet. Just physical will be "out of stock" shortly, as it has in the past when prices went down too far.

neilgin1 wrote:Gold Buying Frenzy Continues: China, Japan, And Australia Scramble For Physical


"We noted here that the plunge in the paper price of gold (and silver) had prompted considerable renewed demand for physical and now it seems the scramble among the "more stable investor base" is increasing. The shake out of ETFs and futures has left the Australian mint short of deliverables and Japanese and Chinese gold retailers seeing a "frenzied" surge in demand. The customers are not just the 'rich' or 'elderly'; in China "they tend to wear water shoes and come directly from the market...;" in Australia, "the volume of business... is way in excess of double what we did last week,... there’s been people running through the gate," and Japanese individual investors doubled gold purchases yesterday at Tokuriki Honten, the country’s second-largest retailer of the precious metal. The panic selling by a weaker 'imminent inflation-based' investor base has sparked physical shortages - "there’s been significant sales made as people see this as great value." It seems our previous discussions of a rotation from paper to physical were correct and this physical demand will eventually leak back into the paper markets."

http://www.zerohedge.com/news/2013-04-1 ... e-physical

Then there's the school of thought that says when Joe Dirt on the street is finally buying, it's time for the smart money to SELL SELL SELL! Not saying that applies here, and I'm still buying. I'm just putting that out there.

The man on the street isn't buying yet. When that starts pm will become near impossible to find overnight and price will go up 2x then 4x then 10x. Markets will be crashing at same time.

neilgin1 wrote:"The customers are not just the 'rich' or 'elderly'; in China "they tend to wear water shoes and come directly from the market...;" in Australia, "the volume of business... is way in excess of double what we did last week,... there’s been people running through the gate," and Japanese individual investors doubled gold purchases yesterday at Tokuriki Honten, the country’s second-largest retailer of the precious metal.

Surely some of this is "man on the street" buying...

I don't know anyone buying that wasn't already a buyer. I do know people that have previously considered it who are thinking again.

My definition of "man on the street buying" is when ordinary people divert paper savings into pm.

I'm just saying it may be heading that way. Anecdotally, I don't know any buyers who weren't already buyers either. But I also don't know anyone in the countries mentioned.

That's the problem with the idea that "if just 10% of the population bought silver, it would go to new heights overnight". The average American has no interest in PM... but that may not be true in other countries. Countries with even higher populations, such as India and China. We all think about what would happen if Americans started buying PMs, but what if Indians stopped?

Do you paralyze yourself playing what-if games, or... what if you act on your convictions?

When paper has dropped so far that even many realcenters start questioning their decisions and beliefs - that is when "blood is on the street" and (if you have the guts to hold assets in paper until then, and if physical can be found) that is the ideal time to buy - pricewise.

68Camaro wrote:When paper has dropped so far that even many realcenters start questioning their decisions and beliefs - that is when "blood is on the street" and (if you have the guts to hold assets in paper until then, and if physical can be found) that is the ideal time to buy - pricewise.

you're up early, 0400....my kinda guy, i'm combat ready between 0200 and 0400....this RC'er isn't questioning my decision's at all...the stack is the stack, I like American 90's, 40's and ASES...along with cupro-nickel and copper coins....along with lead, and protein....and maybe a few other organic's AS REAL CURRENCY.

we stay focused on mission here. Of course, audibles can always be called on the line...but why?...the adversaries machinations are now so transparent, the only option is maintain current course......at least at my place.