"Reuters amiably published two Vietnam golds today again. In the morning, local gold stood at a $44.04 premium to world gold of $1,123.30 and in the afternoon $32.21/$1,129.76 (Friday PM $27.31/$1,102.80). Clearly gold hunger in Vietnam is real and actual imports will be needed to assuage it."I wanted to highlight this because most people are not aware that Vietnam is one of the more substantial gold importers in the world. Note the high import premiums described above. I can not recall a period of time when the premiums in Vietnam have persisted like this for several days. This is indicative of both voracious demand for physical bullion globally AND the fact that the physical market is getting very tight. We have now had several reports and anectdotal indications of bullion shortatages on the LME (that is, bullion which meets LBMA commercial delivery standards). Moreover, it now looks like India will take the remaining IMF gold for sale if the other Central Banks to whom the gold has been offered do not take it. I don't think anyone figured on the IMF gold clearing the market in this short of time period. To be sure, the gold market bears certainly expected that the IMF gold sales announcement would depress market price and they severely underestimated Central Bank demand for gold.
This is all very bad news for the large banks that are short gold in paper form. Got physical custody of YOUR gold?