Saturday, March 29, 2014

The Gold Price is Ready to Climb Higher

Investors are adding to their long physical positions by borrowing national currencies because they want this exposure. They are long physical gold and short national currencies because they expect the gold price to rise and currencies to fall. It is useful to note how the Chinese yuan has fallen these past several weeks, so the yuan gold price was not hit that hard last week. It probably just whetted their appetite to borrow CCFDs so that they could buy more physical metal.

These Chinese buyers know what they are doing. They understand gold is good value, and therefore they want all the physical metal they can possibly get in their possession. And the banks have been willing to heighten this insatiable demand with these CCFDs.

So owners of physical gold should rest easy this weekend. They own what is in short supply, which means that the gold price is ready to climb higher.

- James Turk via a recent King World News interview, read more here: