Canaccord Genuity's Warwick Grigor believes there is an imminent squeeze on the gold market

Canaccord Genuity's Warwick Grigor believes there is an imminent squeeze on the gold market. He says futures markets are being used to suppress the minds of traders while at the same time every spare ounce is being tucked away. The rationale for his conclusion is driven by a report from Anglo-Far East Group, which, among other things, stores gold and runs a gold fund. Its chief strategist had just been to Switzerland and reported a few interesting observations: The largest gold refinery in Switzerland doubled capacity last year and was still needing to operate 24 hours a day to meet demand. Several times last year this refinery was unable to source gold. That had never happened before. Sometimes when gold comes in, it is marked with delivery dates in the 1960s (which tells you something about how much new gold is not around). (VIEW LINK)

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