Latest SGE deliveries enormous: Physical gold may be nearing crunch point

SharpsPixley/Lawrie Williams/8-29-2015

“August is usually a weak time of year for such gold movements, yet the latest week’s figures are for withdrawals of 73 tonnes – the fourth highest demand week ever! And this follows on from deliveries during the month out of the Exchange of 65 tonnes the previous week and 56 tonnes for the first week of August, making a 3 week total of 194 tonnes of gold. If this kind of demand level continues for the final week of the month – figures should be released next Friday – August will be a remarkable month for SGE gold deliveries at 250 tonnes or more – around 90% of global newly mined gold output for the month. And remember this is physical gold, not paper gold! . . .

All this points to the potential for a real tightness in the supply of physical gold. In truth this has been building for some time now, but it could be getting near the crunch point. . .Sooner or later, physical gold supplies may thus become tight enough to start driving the markets – rather than the paper gold which has been doing so to date. This day may be fast approaching if current gold flows are maintained – or increase as they usually do in the latter part of the year.”