PMs ready for next move

By Alasdair Macleod – GoldMoney

A notable feature in these otherwise unremarkable conditions has been stand for deliveries on Comex. Since the end of July, a whopping 102.8 tonnes of gold have been stood for delivery, taking the total so far this year to 873.6 tonnes. In silver, over the same periods, 267.5 tonnes and 8,665 tonnes have stood for delivery respectively.

Those in the know are hoarding physical at the expense of paper.

Until recently, traders believed that higher interest rates and bond yields were bad for gold, but that myth ignored the experience of the 1970s and has been blown out of the water by gold correlating with higher bond yields. The reason is simple: higher bond yields reflect a decline in confidence in the issuer and/or an expectation of a fall in the currency’s purchasing power and the value of associated credit. It is the fundamental reason why central banks are selling fiat for gold.