In this quick video on CNBC the announcer makes the point that the price of gold is dropping as those in the west sell paper gold. In the east, however, the announcer notes that physical gold is being bought en masse mentioning the long lines to buy physical gold to hold for the long term and that such purchases amount to a wealth transfer.
We noted last month that physical buying of gold and silver is increasing while the sales of paper gold and silver are pushing their prices down. Demand for physical gold and silver remains strong in the wake of paper selling.
In a world where the supposed safest sovereign debt, U.S. Treasuries, denominated in rock solid currency, the dollar, are headed toward a possible default, we wonder how long before the prices of gold and silver start their upward momentum and the safe haven status of gold and silver is regained.
Chinese House Wives Buy 300 Tons of Gold
Please visit the Smaulgld Store for a larger selection of recommended Kindles, books, music, movies and other items.
Or you can support Smaulgld.com by making all your Amazon purchases through the search widget below and by ordering your gold and silver by clicking on the JM bullion ads on the site:
DISCLOSURE: Smaulgld provides the content on this site free of charge. If you purchase items though the links on this site, Smaulgld LLC. will be paid a commission. The prices charged are the same as they would be if you were to visit the sites directly. Please do your own research regarding the suitability of making purchases from the merchants featured on this site.
The content provided here is for informational purposes only. Making investment decisions based on information published by Smaulgld (SG), or any Internet site, is not a good idea. Accordingly, users agree to hold SG, its owner and affiliates, harmless for all information presented on the site. SG presents no warranties. SG is not responsible for any loss of data, financial loss, interruption in services, claims of libel, damages or loss from the use or inability to access SG, any linked content, or the reliance on any information on the site.
The information contained herein does not constitute investment advice and may be subject to correction, completion and amendment without notice. SG assumes no duty to make any such corrections or updates. As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment. SG disclaims any and all liability relating to any investor reliance on the accuracy of the information contained herein or relating to any omissions or errors and as such disclaims any and all losses that may result.