"While speculators were busy liquidating their positions on the futures market, we didn't see any selling of physical material"
And there you have it.
Clearly Asians have an understanding of how to accumulate an asset in a long term bull market during a temporary severe correction.
The cartel is merely shooting itself in the foot with a 35mm by allowing physical stackers to accumulate nearly twice as many ounces with the same fiat firepower.
Singapore/Mumbai: Asia's gold buyers have raced to snatch up physical material after the sharp correction in prices, just as the world's biggest gold consumer India prepares for its festival season.
The surge in buying interest boosted gold premiums in the region. In Tokyo, the spread between local and global prices returned to the positive territory for the first time since March.
A strong rally in the dollar and margin calls triggered a 10-percent tumble over just four sessions in spot gold . Prices fell to a 7-1/2-month low of $1,534.49 on Monday, 20 percent below the record of $1,920.30 hit in early September, and rebounded to about $1,650.
We've seen a lot of buy-on-dip type on the physical market, said Dick Poon, manager of precious metals at Heraeus in Hong Kong. While speculators were busy liquidating their positions on the futures market, we didn't see any selling of physical material.
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