Showing posts with label physical demand. Show all posts
Showing posts with label physical demand. Show all posts

Thursday, April 18, 2013

Gold crashes but physical demand sees unprecedented demand

This author properly differentiates between paper shorts (seller-manipulators) and physical longs (buyers), but he improperly uses the phrase "short squeeze."  In a short squeeze, prices rebound sharply as a combination of shorts covering and longs buying contribute to the melt up in the aftermath of bear raid reversal.  In other words, the short squeeze hasn't happened--yet.

http://www.resourceinvestor.com/2013/04/18/gold-crashes-but-physical-demand-sees-unprecedente?ref=hp

Monday, February 4, 2013

India to take baby steps towards gold-linked products

This is further evidence that the status quo central bankers are trying to artificially curb demand for physical gold.  It might work temporarily, but market forces will overrun these controls as long as the corrupt central banks themselves keep printing currency units with no end in sight.  The masses see the writing on the wall with inflationary pressures, so are only taking logical action:  buying gold for self-preservation.

Even if demand for gold is temporarily curbed, Indian citizens will turn to silver as another means of protecting their purchasing power.  Will the Indian government raise import taxes on silver also?  It's typical whack-a-mole economists running around with their heads cut off.  They don't realize if they just stopped their interventionist tactics and did nothing, the global economy would eventually heal itself and correct imbalances.  Instead, activist central banks only distort markets and create unintended asset bubbles, attempting to usurp market forces which will eventually come back to haunt them.

http://in.reuters.com/article/2013/02/01/gold-india-idINDEE91009U20130201