Monday, January 31, 2011

Gold Bar Premiums At 17-Year High In Hong Kong

As the physical gold and silver market continue to tighten we can expect premiums to move much higher in the US and around the world.  Although we have forces like JP Morgan working overtime trying to keep spot prices down utilizing paper, physical demand continues to explode higher. 

Premiums in Hong Kong are at their highest levels since 1994 according to Zerohedge.  As the Middle East and other parts of the world (including the US) continue to show signs of instability people will look for a way to protect their wealth.  As more money flows into physical gold and silver spot prices will move up and premiums will explode higher. 

In other news the People's Bank of China is urging China leaders to buy gold and silver on any dips.  Xia Bin who is an advisor of PBOC said the following "holdings of gold and silver can help establish the yuan as an international currency by increasing China's "final payment capacity."  This piece of advice from Xia comes after is comments from last month where Xia said the PBOC should diversify their $2.7 trillion in foreign reserves and increase gold reserves.  Of course when Xia says "foreign reserves" he means get away from the US Dollar and US Treasuries.

We are living in interesting times.  Protect your wealth!

Article Here

No comments:

Post a Comment