The Past Two Weeks Saw Chinese Housewives Buy $16 Billion Worth of Physical Gold

The first four months of year saw Americans sell $16.6 billion worth of gold via GLD; the past two weeks saw Chinese housewives buy $16 billion worth of physical gold.

Joe Weisenthal says this selling of GLD overwhelms physical demand:

But, as you see, it’s been a mere $16.6 billion worth of gold sold year-to-date – ie four months – via the paper gold vehicle GLD. In the past two weeks, Chinese buyers have bought $16 billion worth of physical:

• Housewives’ gold rush keeps price from falling

According to “Voice of China” radio program, one of this year’s most popular phrases may be “Chinese housewives” – as a major force which reportedly spent 100 billion yuan (US$16 billion) over the past two weeks purchasing 300 tons of gold and thus helping to sustain gold prices at US$1,468 an ounce.

The “Chinese gold rush” has prevented short selling, where gold is sold and then bought back when prices fall. The practice was seen as a possible bid to shore up the US dollar – gold is often regarded as a means of safeguarding wealth against a weak dollar – and to maintain stable interest rates in the US.

This is just China. There is also Turkey, Thailand, Dubai, India, etc. where a similar physical frenzy is going on.

Mrs. Wang two weeks ago:

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