Getting Physical

I've been patient, I've been good
Tried to keep my hands on the table
It's getting hard this holding back
If you know what I mean
--Olivia Newton-John

Despite paper gold prices hitting recent lows, sales of physical gold, such as US gold eagles, are at levels not seen since the credit market meltdown.

Have also noticed premiums widening between spot gold price and price of gold products at dealers such as APMEX.

Combine these data with observations that COMEX bullion is leaving warehouses around the world and you have an increasing divergence between the paper and physical markets.

position in gold