Post by Summit Bullion Inc.

Macro Watch: The Global Migration of Physical Gold A major structural shift is occurring in the wholesale gold market: the continued migration of physical bullion from Western vaults to Eastern markets. While Western institutional investors have historically dictated gold pricing through paper derivatives and ETFs, premium physical demand in Asian markets (led by central bank purchasing and retail consumption in China and India) is pulling massive tonnage of physical Kilo bars out of London and Swiss vaults. The Takeaway: This persistent physical drain is beginning to expose the fractures between paper gold pricing and the actual cost of physical procurement. As Eastern markets demand delivery over cash settlement, securing reliable, verified physical supply chains is becoming the most critical aspect of the bullion industry.