Massive Asian Buying at 33

Any time we get into silver into the $33’s we get very, very big, high volume buying. This buying we are seeing out of Asia is thought to be continued diversification out of dollars, so the physical gold and silver which is being taken out of the market in that case is not expected to return.

This physical buying is part of an increase in hard asset reserves for China and other Asian countries who are underweight precious metals and it is expected to continue for quite some time, most likely for many years. Right now, each time we see gold under $1,500 the demand out of Asia is massive, they are huge physical buyers.

Some would say the paper market is diverging from the physical market and that is probably accurate at this time. Also remember that open interest may be indicating a rally in the very near future even if we have a bit more weakness.” Kingworldnews.com