May 23, Richard Russell of Dow Theory Letters posted in his Daily Remarks the below email from a subscriber in Singapore. While it is anecdotal, it illustrates the growing interest for gold in Asia, which is awash in dollars.
Dear Russell and Company,
Yesterday, after reading your comments about gold being manipulated in the crudest way, I went to a bank in Singapore to see what, if any, gold activity there was. The bank had arranged a rope line (new) to handle the volume of people, at which I waited 45 minutes in a queue to approach the “Gold Window.” Once at the window, your order would be taken and then you would be directed to what amounted to several rows of chairs to await your order to be filled. All of this was new since my last visit about a year ago.
As you can see from the photograph, 100 gram gold bars and 50 gram gold bars were sold out. The only things available were a few one ounce coins, but plenty of kilo bars. We saw several people bringing in suite cases with roller wheels. I asked what that was for, the reply was their orders were too heavy to carry by hand. I asked if this was normal, the answer was yes. The whole situation was interesting to watch.
So maybe the money managers are selling paper gold, but individual investors are buying physical gold with both hands in Singapore.
Stephen J., Singapore