Global Gold Demand Remains Strong: Moy

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Nov. 4 (Bloomberg) -- Morgan Gold's Ed Moy discusses the outlook for the gold market with Alix Steel on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

It is great to have you here.

What is the main difference between east and west buying.

Investors in the united states and europe favor the electronic -- electronics for gold and the short contracts have grown exponentially in the last couple of years here.

They really like the physical gold, they like holding onto it.

They grew up in an unstable banking system and government, and they like to carry some of their wealth, a storehouse of wealth that is portable.

They really like physical gold.

In southeast asia.

On -- unstable financial situations, that sounds a little bit like d.c. at this point.

How does this trend play out?

The key to cut through all of the noise, see what gold correlates best to.

This correlates best to the national debt ceiling.

The higher debt we pile up, -- in the bigger the balance sheet balloons, the higher the price.

What has distorted that in the last 18 months is the reliance on electronic tracking.

This has investors taking a share of that, but they also leverage the gold, loaning it out to short sellers.

One ounce of gold may have multiple claims on it, which distorts the price and the demand for physical gold in the west.

Demand in the east -- demand remains strong worldwide.

I want to look at india, the largest buyer of gold but hitting a roadblock now, with demand down 50% year on year.

Explain what is happening right now with gold imports?

The thing is that gold demand has gone down.

This does not capture the spirit of what is going on.

They have ballooned off of the map and in china because a new section of the possibility -- population is becoming middle class and want to diversify their assets into tangible assets for the reasons i said earlier.

What has happened is gold demand has been so strong in india, and the imports of gold -- the imports to india is so maxed out there, with the trade balance, this has threatened the ruby -- rupee and they have had to lean on a way to curb gold, and the supply -- we have seen a lot of gold being sold at a high premium over what the stock price of gold is in india.

How is this lineup playing out?

Will we see more gold smuggling in india?

I only imported about five tons of gold in october, but the demand was actually 100 tons.

How is this playing out on a global scale?

Whenever there is demand like that, it will find its way in with the premium price.

The artificial government, they have ways to curb demand, that may never work.

When those obstacles go down you will see the demand shoot up.

A correlation is when india shut down their gold demand, china shot from number two, the number one.

Who will soak up that extra supply?

China seems to soak up the supply but they can do more than that.

Take a look at the other countries.

Singapore and malaysia.

A lot of these countries seagull demand going up.

And there are also gold purchases from the central banks, in china and russia.

China did -- russia did do this last month leading to the psychology of gold.

You would consider this would be $200,000 per ounce, with expansion of the fed balance sheet.

What is the identity of gold for those who own gold coins here in the united states?

Two things on that.

The properties of gold have distorted the gold market because of the leveraging of gold.

Coming in and out of the market, basically.


But if you look at silver sales, weather is less speculation you get a more true sense of demand and they will probably sell 40 million ounces of silver, which would break their prior record in 2011. the demand for precious metal is still very strong, but the electronics begin to distorted and there is a lot of sentiment about gold in the west.

Blaming it on the traders.

This text has been automatically generated. It may not be 100% accurate.


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