Dubai Gold Demand Off the Charts

Dubai Gold Demand Off the Charts as Price Plunges (Liberty Blitzkrieg, June 27, 2013):

Only in the gold market does huge demand equal a price collapse!  I suppose the problem is they don’t buy Comex contracts in Dubai and India.  As I mentioned on Twitter earlier today, the pile-on from gold bears is reaching extreme proportions, something like you’d expect near a bottom.  I bought physical silver today for the first time in over a year.

From the UAE’s The National:

There is not enough space on airlines flying in to Dubai to meet the rapidly rising demand for physical gold in the emirate since the price plunged to record lows this week.

The price drop led to a rush of buyers for Dubai gold from the Middle East, South East Asia, the Balkans, Turkey and parts of Europe according to Tarek El Mdaka, the managing director of Kaloti Gold in Dubai.

“I cannot find a place for transporting gold on Emirates, on BA on Swiss Airlines this weekend,” Mr El Mdaka said. “I am shipping in one-and-a-half to two tonnes of gold every day and it is going straight out.”

Mr El Mdaka added that gold is in such short supply in Dubai that he is able to charge a US$3 premium per ounce. “In the last week or so that has gone up from $1.25, $1.50 to $1.75. But now it is $3. We are really squeezed.”

Full article here

In Liberty,
Mike

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