by Paul Yusem
The low in gold on June 28, 2013 at $1,179.40/oz should be the low that will never be seen again for the following reasons.
1. The XAU/gold ratio made a historic bottom at 0.0675 compared to the long term average of 0.24.
2. We had prior record low gold stock sentiment of -37.5% as measured by the Hulbert Gold Newsletter Sentiment Index (HGNSI).
3. US banks go from 41,666 contracts net short gold to 59,473 contracts net long over the course of 4 months.
4. The Bank of England sells 1,244 tonnes of gold it doesn't own.
5. UK gold exports surge tenfold to 798 tonnes in the first 6 months of 2013.
6. Physical gold delivered on the Shanghai Gold Exchange was 1,424 tonnes YTD as of 8/23/13 compared to world production of 1,738 tonnes.
7. The Gold Forward Offered Rate (GOFO) had been negative every single day from July 8, 2013 through Aug. 30, 2013 indicating a run on physical gold at the LBMA.