Flows this week

I wish to ask the Minister a number of questions.

While the regional media in Asia readily documents the nearly daily instances of detected gold smuggling to India and gold smuggling to Japan, they rarely if ever consider the underlying problem. Gold smuggling is a symptom of a problem. And that problem is that these governments are imposing penal taxes, costs and frictions on the free ownership and free movement of gold, thereby distorting the ability of people to choose to save in invest in the ultimate form of money, which is and always has been gold.

The summer months historically present a buying opportunity in precious metals as illustrated in the charts shown below. In the past, there has been a clear change of direction in sentiment annually from the 185-195 day mark – midway in the year. So far this summer, though, gold has broken with tradition by turning in a strong June, as shown in the third chart

COTs last week

In an increasing globe trend, we note with interest the following statements made by the National Bank of Poland (NBP). Between 2005 and 2019, the NBP’s gold holdings increased by 125.7 tonnes to 228.6 tonnes and they also confirmed that nearly 50% of Polish gold will be repatriated to their country.

However what is even more telling is that, 95 tons of this increase can be attributed only to the month of June this year.

Flows this week - no COT charts due to holiday

Perth Mint sales for June

Indian flows for April