Gold Is Flowing From The Western World To The East

Gold is moving out of western markets and into eastern markets, a new  report from the World Gold Council highlights. “The recent dynamics of the  gold market have worked to ensure that lower prices (caused, in part, by ETF outflows) boosted Asian demand to an extent sufficient to absorb the gold  flowing from western markets,” according to the report.

Here’s how it works: Gold continued to work its way through the supply chain, to be converted from London Good Delivery bar-form, via the refiners, into smaller, Asian consumer-friendly denominations of kilo-bars and  below. This process is borne out by recent trade statistics. Data from Eurostat  show exports of gold from the UK to Switzerland for the January – August period  grew more than tenfold, to 1,016.3 t. Consumer demand in China and India dwarfs the rest of the world. Check  out the chart:


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