Physical Gold Demand at Record Levels, Paper Gold Price Disconnect

Over the last week, the gold price has made new all-time highs in many major currencies, which has benefited the many savers and investors in gold whose home currencies are those other than the US dollar.

In the current environment, physical gold demand is overall very strong. As mentioned, physical gold demand was actually at record levels at BullionStar over the last week.

However, the gold price is unfortunately unreflective of the physical market. Why? Because to reiterate, the gold price is set in the paper markets such as COMEX and not by physical gold trades. Unbacked gold synthetics and gold derivatives are determining the ‘gold price’ and not high physical gold demand.

Physical Gold Demand at Record Levels, Paper Gold Price Disconnect