Yellow metal flows from the West to the East

According to Bloomberg reports, a considerable part of Western investors refuses gold. It mostly concerns institutional investors. In Asia, at the same time, there is an absolutely opposite picture. Investors, realizing that gold prices have fallen, have started to buy more coins, bars and jewelry.

After it became obvious that the demand for gold in the East has noticeably increased, the metal is withdrawn in large quantities from Western vaults to go to, for example, the Shanghai Gold Exchange or the Istanbul’s Grand Bazaar.

Joseph Stefans, head of trading at MKS PAMP SA, commenting on the situation, stressed the lack of interest in gold among Western investors. Thus, it can be said that there is a movement of metal from the West to the East. He also noted that it’s important to keep abreast of the latest trends.

The East is successfully taking advantage of the fact that the West gives up gold as it’s falling. The East needs the metal to build up its gold reserves, thereby protecting itself from the inflation of domestic paper currencies.