Mark Cutifani: Major Buyers Are Finding It’s Hard To Get Physical Gold

[pmbug]

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What I thought was the most fascinating of Mark’s comments during the interview, was his observations of major gold buyers emerging from the Middle East & Asia. “People are coming directly to us,” for large gold purchases he said. “People who want tonnes of physical gold, people with serious financial muscle…because they’re finding it’s very difficult to secure the volume of gold they want…That’s something we’ve noticed over the last 18 months, and it’s been increasing in the last 6 months. I think people are finding its hard to get physical gold.”
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More (including .MP3 audio interview): http://bullmarketthinking.com/mark-...buyers-finding-its-hard-to-get-physical-gold/

 

[ancona]

Man, I read that article as well and found it to be quite informative. When someone that high placed within the industry speaks, we had all of us better listen. Eric Sprott is having tremendous difficulty sourcing metals for PSLV and PHYS, so maybe he should do like the rest and go straight to the mines to get it.

 

[pmbug]

Just noticed the interview was posted on YouTube:

 

[DoChenRollingBearing]

FOFOA has been saying similar things about it being it hard for BIG buyers to get physical gold. I do not want to go any further on this until I like at the link though!

EDIT:

I read the link about the interview with the boss of Vale. That IS very interesting that big buyers are going to the mines themselves to get physical. China is buying up all of their gold production too. And one of you guys above pointed out that Sprott was turned away from the IMF about buying some of theirs (and finding other gold as well) for his fund.

Yes, I quite agree with the sentiment that it may get harder for us shrimps to get physical gold as time goes by. May start getting harder at any moment. I once asked FOFOA when he THOUGHT Freegold would kick in. He said it could happen *NOW* or later on, he thinks a 2 or so years from now scenario is more likely. Of course neither he nor I have any real idea of the timing.

My prediction record is often very poor in the short term. That is why I don´t even try trading like DCFusor does! Burned my little fingers a few times trying that, showed me that I do not have the aptitude for trading. I am better at stacking though. Even a Bearing with just 2 and 1/2 working neurons (¨Sgt_Doom¨ there at ZH was being generous) can stack!

 

[DSAbug]

Gold companies need to get a clue and not sell it direct. There is a shortage and prices need to rise. While it might be "nice" to help out a fund that is desperately trying to obtain physical, it's better for their share holders if they hold onto it. That's what Sprout (not Sprott) research is recommending to miners.

 

[pmbug]

The Chinese have continued to take delivery of both physical gold and silver directly from the ETF’s GLD and SLV. They are also going directly to producers. Entities are bypassing the COMEX altogether and going straight to gold mining companies. Every single month producers have a certain amount of gold and silver they sell. Normally they sell it to the bullion banks and the bullion banks, of course, leverage this gold and sell up to 100 times that in paper markets to control prices.

They (bullion banks) hold that little bit of physical gold and claim they are backed up on their position to the CFTC. I have all my large buyers now going to producers and saying to them, ‘Look, don’t sell it to the bullion banks, we’ll buy it from you.’ So we are buying directly from the producers and this includes some sovereign entities which are doing the same thing.

We’re struggling to get the physical out of these guys (producers) because they have so many people banging on their door, saying, ‘Sell it to us direct.’ What these buyers are doing is essentially taking gold out of the system, which means the bullion banks can’t leverage that gold anymore.

So this is a huge, dynamic shift that wasn’t there before. Now we are working on one other thing. We’re beginning to offer them forward contracts. If you are a sovereign entity, what you are saying to these producers, especially on new projects, is, ‘Why don’t you sell the gold to me in 12 months? Here’s the cash, just provide it to me 12 months from now.’

These buyers are now cutting off future gold supply from the bullion banks....

More: http://kingworldnews.com/kingworldn...are_Witnessing_a_Historic_Bottom_in_Gold.html