gold $4000, page-13

Hi DR PWU and fellow SAR owners..

Interesting article from this morning’s issue of 'the Standard'(i live in HK SAR) titled "GOLDEN CHANCE". The article highlighted the increase in physical gold purchases primarily by mainland Chinese from HK dealers. In 2012 507.75tonnes was reportedly bought by Chinese. In Feb'13 alone 97 tonnes was reported to have been sold to Chinese buyers ( China Gold Assoc stats)90% up on Jan'13 sales. Gold dealers in HK are now largely out of physical supplies with shops visibly overflowing with bargain hunters... ill see this again today as i scramble to get a bowl of luke warm noodles on my 90second lunch break

As always trend is your friend and coupled with sentiment has weighed heavily on SAR's fortunes however there does appear to be an almost insatiable desire for the shimmery metal by a significant amount of the world’s population ( India and China where gold is still extremely popular)

In 2008 and 2010 the physical markets dried up pushing retail deliveries out to 2-3 months.. highly likely we are heading in that direction again in Asia at least.

One need look no further than www.comparesilverprices.com to see the premium for physical ownership in precious metals(silver as a proxy)

I’m not sure Jim Rogers “hope” will do a lot for the price however the real world effects of demand and supply must at some point lead to price discovery.

Happy Friday

DYOR