Saturday, September 17, 2011

James Turk Discusses Physical Gold Premiums With Analyst John Brimelow

James Turk has produced another must watch interview, this time with analyst John Brimelow discussing physical bullion premiums over spot paper price throughout the world, and how India and China are increasingly influencing bullion premiums.

In 2007 Vietnam imported more gold than China, but something strange happened in the latter part of last year. Shanghai gold exchange premiums towards the end of last year suddenly rocketed to double digit levels, far more than what would be justified by the price you need to move gold.  This continued for about 6-8 weeks, then we started to see stories for the first time about huge physical shipments of gold into China were happening. So last year was a very dramatic shift in the world gold market, rooted in China.