Gold trade between West and East still follows a ninety-year-old pattern. The price of gold is mainly set by Western institutional supply and demand, while countries in the East take the other side of the trade. As a result, above ground gold moves from West to East and back in sync with the price of gold decreasing and increasing. Knowledge of this pattern is imperative to understanding the gold market and the price of gold.
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The West–East Ebb and Flood of Gold Revisited
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Gold trade between West and East still follows a ninety-year-old pattern. The price of gold is mainly set by Western institutional supply and demand, while countries in the East take the other side of the trade. As a result, above ground gold moves from West to East and back in sync with the price of gold decreasing and increasing. Knowledge of this pattern is imperative to understanding the gold market and the price of gold.