Minyan Mailbag - Physical Gold
Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next discussion with that very intent.
You regularly mentioned physical demand for gold in your columns on Minyanville. As you say this seems like a 'good' measure of how long and/steep a correction in Gold will last. Are there any resources on the web (apart from your articles) where I can get gold physical demand information. Thanks !
Minyan Girindra Sharma
PS: Can't help but think of the strength of Gold physical demand being an indicator for Gold prices just as the bond spreads are for equities (as Prof. Reynolds points out).
I get my physical info from Reuters and Bloomberg as well as talking direct with local metal dealers in Asia. I just go off the premiums charged in the major centres like Madras, Mumbai on Reuters etc. I also have a mate in NY who has a "direct line to God", when it comes to Asia and gold. The higher the premiums in India, the more they are buying and importing. They were importing yesterday am at $446 so I guess they are gonna do more today with the $10 discount in place! There is much discussion about.
Hit the local Indian newsapers in their business section.etc
All India Newspapers
World Newspapers - India
A good place to start on physical market analysis is simply at your local coin/bar dealer. He will give you an idea about demand in your area. Then it's a case of digging around, asking questions and listening to everyone. 2 ears/1 mouth stuff.
It's not that easy to find out much info in the secretive world of physical gold. It's a very small market and very much a different animal to the "paper" gold price that everyone is an "expert" on. I'm no expert, believe me,and I think anyone playing commodities futures without knowledge of what's going on in the underlying physical market, is headed for some very interesting experiences going forward. Most of them not of the "nice" variety. Just opinion as usual...
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