Today gold slid under $1200 per ounce, dropping to a level not seen in three years.
Judging by the price action one would think that gold is not only overflowing from precious metal vaults everywhere, but can be found thrown away on the street, where nobody even bothers to pick it up.
One would be wrong. In fact, as Bloomberg’s Ken Goldman reports, “you could walk into a vault in London and they were packed to the rafter with gold, and the gold would trade from me to you to somebody else. You could walk into these vaults today and they are virtually empty. All that gold has been transferred out of London, 26 million ounces….”
To find out where it has gone and why it is never coming back, watch the clip below (spoiler alert: listen for the line: “the Chinese don’t want US dollars anymore, they want gold“).
– Australia has no gold
– Could gold be the next Libor scandal?
– Open letter to the World Gold Council – Billionaire Eric Sprott
– China imports over 2,000 tons of gold in last two years
– Chinese rush: 10,000 people waiting in line to buy gold
– Gold: Comex paper vs. Shanghai physical