This is Not 2011

by Bill Holter

We received many e-mails and phone calls yesterday re the gold and silver trashing. First, this is not 2011 in any way shape or form. Back then, we were at the end of at least 2 1/2 years of very strong action coming off the 2008 GFC lows (or 10 years off the 2001 lows). Today we are less than 6 months off the lows. While physical demand was good in 2011, physical demand today is off the charts and stronger than ANY time in memory. In fact, Miles Franklin saw almost zero sells yesterday as the already very busy phone lines exploded with new buy orders!

Add to retail demand the fact that central banks bought nearly 20 tons of gold over the last 30 days. Understand, central banks do not buy gold to trade, it is an effort to shore up their shaky foundations because they know where the current financial lunacy leads to. Also, COMEX August deliveries look to be a barn burner! First notice day saw 143 tons standing which prior to this June was simply unprecedented.

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