London Trader – Competition To Buy Physical Gold Is Fierce
October 16, 2012
With many global investors still concerned about the recent price action in gold and silver, today King World News interviewed the “London Trader” to get his take on these markets. The source assured KWN that “… we are not going to see a waterfall decline in the gold market.” The source also said, “… the competition to buy physical is extremely fierce right now.”
King World News will be releasing a total of three written interviews with the London Trader today. Due to recent market action, these interviews covering the gold and silver markets will be released as soon as possible.
Here is what the source had to say: “In the past we have seen waterfall type declines when small speculators are heavily leveraged. But the market has changed. When the physical market was not as strong as it is now, these corrections would go $200 to $300 in gold. As an example, we went from a previous peak of about $1,900 down to around $1,500, or roughly $400 in that case.”
The London Trader continues:
“We are not going to see that this time. It’s not going to happen that way this time. Back then, the central bank buyers and these sovereign buyers were quite happy to sit and wait for a lower price. Now they are not. These buyers want out of their dollars and euros and they want physical gold and silver.