John comments that the world’s central banks and derivatives traders have been having their usual fun with gold and silver lately, dumping huge volumes of futures contracts into thin markets to produce massive declines — just when precious metals SHOULD have been soaring in response to near-global debt monetization.
But something interesting happened as this latest smack-down really got going. Physical buyers — who goldbugs have for years been expecting to ride to the rescue, finally did. Chinese and Indian gold imports, which had trailed off earlier in the year, soared in response to the recent price declines. There’s some debate about exactly how much these guys are buying, but it certainly looks like they’re talking all that’s being produced by the world’s mines, and then some.
