Gold ETF Holdings Continue to Plunge, While Demand for Physical Surges – Nathan McDonald

by Nathan McDonald, Sprott Money:

Once again, we return with a tale of two markets, which, if you’ve been following my writing for any length of time, you will know that I am referring to the physical gold markets and the paper gold markets.

One of these markets is vile, corrupt and an outright scam that keeps the other down and deludes people into a false sense of security. This, of course, is the paper market. The other, the physical market, is real, honest and reacts correctly in periods of turmoil and uncertainty.

Once again, these markets have diverged from each other as gold ETF holdings suffer a massive drop, plunging for 28 days straight.

The last day that holdings increased was the day that Hillary Clinton conceded victory to Donald Trump – an indicator that many are pointing to and stating that better times for the economy lay ahead, and therefore the safety of gold is not needed as much.

This, of course, is wishful thinking and flat-out incorrect. All around the world the demand for physical real gold is exploding, thanks to the draconian and corrupt governments in India and Venezuela, who are engaging in active economic warfare against their citizens and attempting to force them into an even more bogus, digital fiat system.

This has caused the demand for precious metals in India to surge even higher as people attempt to get their hands on anything real. In addition to this, demand in China is incredibly high and is showing no signs of slowing down.

Perhaps the West, under the Presidency of Donald Trump, will be able to slow the inevitable death of Western economies under this horribly flawed fiat money system, but that is all.

In the end, gold will return to rightful place as the linchpin of our money system and fiat will return to its rightful place in the trash bin of history. It is only a matter of time.

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