Sunday, November 17, 2013

Western Central Banks Continue to Dishoard Gold

Physical demand for gold and silver continues to remain incredibly strong. This comes in spite of the recent raid on the precious metals, which began on Wednesday of last week and continued into the close on Friday. The price drop began with the release of the FOMC statement. Recent history has shown, that ANY FOMC statement release is bad for gold holders. This is due to the smash in prices that inevitably seems to follow each statement release.

This FOMC statement did not disappoint in its ability to defy all logic. The FED announced that they will stick to its guns and NOT taper. That’s right, somehow the FED not curtailing its QE programs is considered gold negative? To any sane person who knows anything about the function of gold and silver, this reaction to the FOMC statement makes no sense. Copious amounts of money printing is gold positive.

Despite the manipulation that continues to plague the precious metals market, there continue to be cracks forming in the armour of the manipulators. Even as they continue to dominate the paper market, their grasp on the physical REAL market continues to slip away.

Demand for the physical metals remain fierce as the paper price artificially suppresses the cost of metals. This demand has resulted in the US Mint’s temporary inability to supply American Silver Eagles to wholesalers. A delay of four weeks is being reported with production halting on December 9th and not resuming until January 13, 2014. This has already resulted in a rise in premiums for the popular American Silver Eagles...

- Source, Sprott Money Blog, read the full article here: