If the physical gold market is anywhere near as tight as these two market observers indicate, get ready for some serious fireworks in the precious metals markets. The first video is one that has been making the rounds in recent days. It’s an interview with Mihir Dange, co-founder of commodity trading firm Grafite Capital from the NYMEX, in which he discusses Chinese demand, backwardation and physical supply tightness.
The second video is an interview of Tarek El Mdaka, managing director at Kaloti Jewellery Group in Dubai. While it starts off slow, bear with it, as toward the end he states:
“After this drop [in price] we have 90 days order logbook. So we cannot fill the demand we have at this stage.”
These are must watch videos for anyone interested in the gold market. Enjoy!
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I also agree that market demand for physical gold will most likely cause prices to either stabilize or rise to previous levels. China has been importing gold at record levels lately along with other countries. It will be interesting to see whether gold will recover from the recent April 2013 price fall by the end of the year.