- Gold Buying Frenzy Continues: China, Japan, And Australia Scramble For Physical !
by Tyler Durden, www.zerohedge.com
We noted here that the plunge in the paper price of gold (and silver) had prompted considerable renewed demand for physical and now it seems the scramble among the “more stable investor base” is increasing. The shake out of ETFs and futures has left the Australian mint short of deliverables and Japanese and Chinese gold retailers seeing a “frenzied” surge in demand. The customers are not just the ‘rich’ or ‘elderly’; in China “they tend to wear water shoes and come directly from the market…;” in Australia, “the volume of business… is way in excess of double what we did last week,… there’s been people running through the gate,” and Japanese individual investors doubled gold purchases yesterday at Tokuriki Honten, the country’s second-largest retailer of the precious metal. The panic selling by a weaker ‘imminent inflation-based’ investor base has sparked physical shortages – “there’s been significant sales made as people see this as great value.” It seems our previous discussions of a rotation from paper to physical were correct and this physical demand will eventually leak back into the paper markets.
Australia (via The Age):
Gold sales from Perth Mint, which refines nearly all of the nation’s bullion, have surged after prices plunged, adding to signs that the metal’s slump to a two-year low is spurring increased demand.
“The volume of business that we’re putting through is way in excess of double what we did last week,” Treasurer Nigel Moffatt said, without giving precise figures. “There’s been people running through the gate.”
“There’s been significant sales made as people see this as great value,” Mr Moffatt said. “Gold owners are very reactive to significant market movements.”
The Perth Mint’s sales of gold coins climbed 49 per cent to 97,541 ounces in the three months ended March 31 from a year earlier
China (via China News):