Asia Gold: Buyers Rush in After Price Slump; Premiums Up!

• The current prices of gold and silver are very cheap! There are massive buying out of China and India! These countries understand that gold and silver are real money because of their long history. They have gone through many paper currencies bust throughout their history and eventually everybody goto physical gold/silver! Do not be afraid of the current takedown. 3 months later, I believe gold will be above US$2000/oz!
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  Asia Gold: Buyers rush in after price slump; premiums up !
  Reuters, http://www.asiaone.com/ 
  SINGAPORE/MUMBAI – Asia’s gold bugs have raced to snatch up physical material after the sharp correction in prices, just as the world’s biggest gold consumer India prepares for its festival season. The surge in buying interest boosted gold premiums in the region. In Tokyo, the spread between local and global prices returned to the positive territory for the first time since March.
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  “We’ve seen a lot of buy-on-dip type on the physical market,” said Dick Poon, manager of precious metals at Heraeus in Hong Kong. “While speculators were busy liquidating their positions on the futures market, we didn’t see any selling of physical material.” Poon said the strong investment interest in gold from the region is likely to support the bullish sentiment in bullion.
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  Premiums in Hong Kong rose to more than US$2 an ounce above spot prices, from US$1.20 to US$1.50 a week earlier, dealers said. In Singapore, premiums increased to about US$1.50, from 90 US cents to US$1.20 a week earlier. Japanese investors and industrial users alike were lured by the sudden drop in prices. “The general public started to buy gold and platinum, and the good demand has pushed premium to 50 US cents,” said a trader at a Tokyo-based bullion house, “Industrial users are also buying silver, gold and other metals.”
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  But once gold prices rebound above US$1,700, the general public’s interest in  gold may fade, he added.
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  India rushes to buy
  Gold traders in India rushed in, after domestic prices fell to their lowest in seven weeks on Monday, pushing premiums up, traders said. “The correction has come in at a right time as we are entering into the festival season,” said Pinakin Vyas, assistant vice-president with IndusInd Bank, a private gold importing bank in Mumbai.
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  Premiums on gold rose by 25 US cents to US$1.50-US$2 on London prices. “People are buying with an investment purpose, thinking of profiting from lower prices. They are comfortable buying at below 27,000 rupees (S$705) levels,” said Harshad Ajmera, proprietor with wholesaler in Kolkata, JJ Gold House. 27,000 rupees is just over US$546.
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  The most-active gold for October delivery on the Multi Commodity Exchange (MCX) stood at 26,340 rupees per 10 grams on Tuesday, down 8.4 per cent from its record of 28,744 rupees hit on Sept 6.
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  “Physical demand right now is not just decent, it is exceptionally strong,” said UBS in a research note, after observing strong buying from India and elsewhere in Asia, as well as robust retail demand for coins in Europe.
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  … for the full article click here!

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