COTs this week

The message COMEX shorts are about to receive is that gold buyers in India, China, Russia and Turkey don’t care much about the Fed’s dot plot or Q3 GDP. As we await rebirth of western investment demand in gold markets, we suspect an imminent clash between hyper-bearish COMEX spec positioning and staunch global physical demand is about to ignite some short-term pyrotechnics. This should be interesting to watch.

Russia adds 1 million ounces in August.

Gold is cheapest ever in history compared to the global fiat monetary base as we recently showed.

Therefore, if we could own just one asset class to hedge against ultimately rising inflation as record financial asset bubbles are bursting, it’s precious metals

Flows this week

In other words, gold has become cheap (and undeservingly so) – which might be painful for those currently holding gold but offers an excellent opportunity for those who want to build up their gold positions. In any case, it appears that we are right in the middle of a situation in which market prices do not reflect ‘true values’: The stock market seems to be expensive, and gold is too cheap. And history taught us that over- and undervaluations will be corrected over time.

Gold imports to India, the world’s second largest consumer of the yellow metal, more than doubled in August to their highest level in 15 months.

Flows this week

Chinese reserves for August

Advisers to Asia’s super rich think their clients should put more of their money into gold, taking advantage of price declines to buy the yellow metal amid volatile global markets and US-China trade tensions, a new report said.