Frank Holmes: China’s very aggressive program of gold buying in motion right now
By GCRU Gold News on Thursday, May 5 2016, 07:02 - Permalink
You've been covering the newly formed Shanghai Gold and Silver Exchange on your Frank Talk blog, and that is certainly a development worth watching. Now future markets in the west report declining inventories and growing open interest. There is less and less registered physical metal backing each contract. The COMEX coverage ratio of open interest relative to registered stock recently surpassed 500 ounce of paper gold for each ounce of physical metal, leverage, like that is totally unprecedented. Now according to our own contacts in the industry and from other reports, large amounts of physical bullion have been heading east, inventory of gold and silver bars in the Shanghai Exchange is growing rapidly.