physical gold

Looking at the factors forcing the price of gold down last week caused me to scratch my head a bit. Even though the price of gold was falling on the futures market anecdotal evidence showed that physical gold dealers were doing a booming business as sales volume was actually up by 50% last week as buyers of the physical metal were jumping on the opportunity to buy gold at a discount. So I wondered how could demand for physical gold be up while prices continued to fall? The answer it appears is that there is a major disconnect between physical gold vs. “paper gold”. In today’s article, Bud Conrad looks at the factors in this disconnect.