You have often heard me say that ‘gold is flowing from West to East.’
Much of that gold flow is through the refineries of Switzerland, where London good and NY gold bars are converted to the kilo specifications demanded by the Asian markets.
Most of the gold into Switzerland, by far, is coming from the London bullion market. With lesser amounts coming from the US and from Turkey. I noted here the other week that Turkish banks were selling gold reserves to support the lira.
You have seen the estimates of the physical gold floats in London shown here from time to time. That float has dwindled considerably. And this is why it is important.
And where does the gold go after it leaves Switzerland? As you can see below, it is by far flowing into China, India, and then Thailand, Singapore, and the UAE.
Physical gold is flowing from West to East. And the West is scraping the bottom of the barrel, at least at these prices.