Share
Some will remember when a few of us started posting of shortages in precious metals for retail sale. Many scoffed, but time has proven that there is indeed a shortage the world over. Now we are starting to get anecdotes of Comex prices being ignored. Here is one
"The real price of gold is rearing it's head
I am presently in Indonesia.
The gold shops in Jakarta have recently experienced 'massive selling' and runs on their stock.
So,what has happened is that gold shop owners have gotten together and raised the price of gold over Comex prices.
COMEX ia now irrelevant in a country where gold shops are on every corner.
Paper COMEX pricing mechanisms are being usurped by supply and demand.
Here, as in all Asian countries, any person can walk in and buy physical gold as low as half a gram in weight.
Some of you may also note that Jason Hommel of silverseek.com I believe, has started purchasing large 1000oz bars of silver at COMEX prices, paying charges for the metals to be refined into 100oz bars or smaller then auctioning them off for around 40-50% premium over the COMEX price.
This is truely significant, firstly because this IS NOT POSSIBLE IN A FREELY TRADED MARKET. Secondly because others will see such huge arbitrage profits can be made and will no doubt aim to do a similar thing, and thirdly because this will set off a run on COMEX supplies as people request delivery, knowing they can on sell for large profits.
To me things are becoming very clear. The manipulation is breaking down as we speak. Gold has broken to new highs in many currencies and the USD Gold price will soon join them. On a technical note, check out the USD gold chart on stockcharts: http://stockcharts.com/h-sc/ui?s=%24USD
And note the very obvious bearish divergences. There are 4 higher highs in the USD Index with 4 lower highs on the RSI starting with 1 in the week Sept 8-15, followed by 2 in the week Oct 6-13 and 1 last week. A fall in the USD is inevitable and could come as early as this week, but at worst I would expect it within the next 4.
