by Jan Skoyles, TheRealAsset.co.uk:
It’s no secret here at The Real Asset Company that we’re big fans of Grant Williams’ Things That Make You Go Hmm… . The latest issue was one of the best in recent months, if anything for it’s fantastic introduction on the huge tidal wave of gold surging towards Asia.
Last week a friend asked if the recent climb in the gold price was just gold investors being set up for another fall. I had to sympathise, given the knocking around many gold buyers have felt in the last two years this is a concern I can appreciate. However, in the last two years we haven’t seen this desperate thirst for gold in the East as we are now. Were we seeing this in in the West then I would perhaps be cautious, as investors here are more likely to sell-up when they think the price has hit a new high. Yet in the East, it’s unlikely they’ll be letting go of their gold quite so easily. So when we see this much gold flowing from West to East, it’s ok to expect the real fundamentals of demand and supply to kick in.