Whale Buying Gold at $1,800

Gold has managed to stay above, yet very close to the $1,800 level, and that’s made Eddie van der Walt and other scratch their head and look for answers.

I was always curious about why that’s happening, and one of the few logical explanations seems to be that there is a someone (an entity?) who’s buying large amounts of gold when the metal drops below $1,800, suggests Eddie van der Walt in his article for mining.com.

Apparently, there is no large buying activity showing up in the ETFs, nor in gold futures. This makes van der Walt think that there is a large buyer acquiring physical gold on the OTC market in London.

The most-interesting thing Eddie wrote about, is that there appears to be very little footprints left of the large purchases. This might suggest the buyer is able to buy physical gold under the radar, and store it in even more under-the-radar vaults. Van der Walt suspects there might be a sovereign entity buying physical gold in secret.

How is this possible? Shouldn’t central banks report everything they buy and hold?

Theoretically, yes, they should. However, van der Walt reminds us of the time when China didn’t appear to be buying any gold between 2009 and 2015, to then later declare it had bought a total of 53 million ounces of the shiny metal, which they consider a store of value.

Look at Eddie’s charts here: https://www.mining.com/web/looks-like-theres-a-whale-snapping-up-gold-bullion-below-1800/