File the following head-scratching information under the FWIW category:In an interview on Bloomberg this morning, Haywood Cheung, President of the Chinese Gold & Silver Exchange in Hong Kong says that his exchange is essentially sold out of physical bullion and is waiting for a shipment coming from Switzerland next Wednesday.http://www.bloomberg.com/video/steady-upward-trend-in-gold-p...If you watch this short video, you will note Cheung says that on his exchange, demand is much greater than supply at the moment because most of the members of his exchange want physical delivery right now. He suggests that support at the $1,300.00/ounce level is very strong.http://www.bloomberg.com/video/steady-upward-trend-in-gold-p...Cheung's story is the same one I got from the local retail bullion dealer. Local guy says that folks seeking to buy gold & silver have been coming out in large numbers since the paper price of gold dropped - but that folks seeking to sell have been very scarce. Premiums for physical are significantly higher due to the supply/demand mismatch in physical.Whether anyone wants to believe it or not, there is a serious disconnect between the price of paper gold (like GLD) and physical gold right now.
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