"It appears that there is a dwindling and overleveraged supply heading towards an unmanageable and relentless source of demand."

It is interesting to watch the ongoing management of physical gold holdings in the West. Physical gold has been seeing large draw downs from inventory during this price decline, but silver has not.

This is not due to some preference or matter of taste. Physical gold for sale at these prices is in short supply, whereas silver is not. Both are subject to speculative price manipulation in the paper markets.

The relentless demand from Asia is stressing the highly leveraged claims per physical ounce of gold in London and New York. It appears that there is a dwindling and overleveraged supply heading towards an unmanageable and relentless source of demand.

The system will be maintained— until it cannot. Although the game can be extended by a determined effort, no commodity pricing pool can last forever in the face of a stubbornly stable supply and a steady excess of offtake out of the pool, shenanigans and antics notwithstanding.

Physical gold is flowing from West to East, into the markets and strong hands of Asia. The eventual resolution may be quite energetic in terms of price.