Much of the world’s gold is headed for New York, to reshaped gold market
“US traders rush towards gold while China and India lose interest in the precious metal changing the global gold market. As the world economy faces a downturn caused by the coronavirus, U.S. traders have scrambled for gold, seen as a safer store of value by many, to cut their losses, according to The Wall Street Journal.”
USAGOLD note: The lost interest in China and India is not, in our view, a permanent phenomenon, and strong interest in the United States is nothing new. What is new, courtesy of the coronavirus, is consistent – perhaps even permanent – mismatches between physical supply and demand that the paper markets are having difficulty reconciling. At the moment, It is quiet in the paper gold market because of the influx of bullion this article mentions, but with a few twists and turns on either side of the supply-demand equation shortages and rapidly escalating premiums could become headline news again.
Repost from 6-13-2020