Monday, May 16, 2011

London Trader - Massive Asian Buying of Physical Gold & Silver

"Gold is not going to go down much further at this point, so you should not see an awful lot more damage to silver.  Shanghai just closed with a premium to gold just a few minutes ago.  If you look at what happened to gold on Friday, when did the smash occur?  After the fix, after London had gone home, suddenly 35,000 contracts came out on the sell side.  The Chinese and the rest of Asia along with London had gone home and paper was used to drive the price down."

"This physical buying is part of an increase in hard asset reserves for China and other Asian countries who are underweight precious metals and it is expected to continue for quite some time, most likely for many years.  Right now, each time we see gold under $1,500 the demand out of Asia is massive, they are huge physical buyers."

- London Source, Kind World News

Read the full article here: