As I mentioned before, gold could test the $1,260 area with silver dipping below $20 in the paper market. Clearly the physical market will not observe these prices and will simply increase premiums if and when the price drop occurs.
The central planners are trying to make the markets look robust and profitable under the current fiat system. Their goal is to break the emotional back of the gold investors and traders. In the meantime, the BRIC countries continue to accumulate gold:
China gold imports to keep growing after hitting record high.
Net gold flows from Hong Kong to China, the world’s No. 2 gold consumer after India, jumped to 223.519 tonnes in March from 97.106 tonnes in February, smashing a previous record of 114.372 tonnes in December, data from the Hong Kong Census and Statistics Department showed on Tuesday (www.censtatd.gov).
See: http://uk.reuters.com/article/2013/05/08/uk-hongkong-china-gold-idUKBRE94702C20130508
Gold Imports by India Seen Topping 100 Tons for a Second Month
Gold imports by India, the world’s largest consumer, are set to exceed 100 metric tons for a second month in May as jewelers rush to beat central bank curbs on overseas bullion purchases by banks, a refiner said.
The Kings of the East continue the wealth transfer while we focus on being entertained.