The recent drop in gold has created a huge surge in Asian gold demand.
It’s happening in India, Hong Kong, and elsewhere.
From Josh Noble at FT:
Asia is witnessing one of the strongest waves of physical gold buying in 30 years, with bargain hunters using the drop in prices to secure jewelry and gold bars.
The feverish buying has left many of Hong Kong’s banks, jewellers and even its gold exchange without enough yellow metal to meet demand. In Shanghai, the gold exchange saw volumes – often seen as a proxy for demand – rising to a record on Monday, while queues formed outside some jewellery shops in Beijing.
Check out these Reuters photos of crazy gold demand in Hong Kong that’s causing shelves to go barren.