the incredible collapse of value of silver , page-15

"mate, don't you realise that the gold price is set and determined in $US. "


Its a global market and precious metal prices are increasingly determined by Indian and Chinese demand more than anyone else, representing 50% of total demand today.

When prices increase too much in their local currency terms, demand from these two countries plummets. We've seen this time and again in the past decade, last time when gold ran to $1900 last September.

Indian demand increases with USD strength rather than weakness... their plummeting exchange rate vs USD has seen gold imports reduce significantly in 2012 versus 2011.

So why has the gold price fallen? Blame the Indians and partly the Chinese, not the shorters.

The shorters, by that I mean the commercial traders and bullion banks who see what's happening in the physical market, are the smart money providing a window that the rest of us can use.