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The Disconnect Between Supply and Demand in Gold and Silver Markets, Part II

According to the WGC, “net investment demand in Vietnam in the first half of 2008 totaled 56.8 tons, already outstripping the 56.1 tons recorded for the whole of 2007.”

Does that have anything to do with the fact that Vietnam has double digit inflation and the Vietnamese govt. have put restrictions on the ownership of gold.

The Disconnect Between Supply and Demand in Gold and Silver Markets, Part II

Conrad - you say - Meanwhile, the COMEX fantasy price, supposedly, dropped into the $800s and even, temporarily, into high $700s, during that time period. Now, a lot a market participants feel that they have the right to buy at that price, because that’s the “spot” price. But, can they? A lot of people are paying premiums above so called “spot”

You can go long on any of these "Fantasy" exchanges and if you keep your position till the expiry of the contract usually every alternate month, you will be alloted the metal at the price you booked it at. The Comex contract is 100 oz. but there are alternatives the DGCX (UAE) is 32 Oz. In India they have contracts for a 8 gram coin on the MCX apart from the regular 1 Kg and 100 Gram bars. If your position is open you have to take the delivery or face stiff fines on default. So this is actually a reality market which unfortunately maybe manipulated by a few big banks.

The COT Report and an Emerging Uptrend

The chart is a month old, the latest is 11/13/07