You are here

As gold hits fresh high, Wall Street wonders about a mystery buyer

Section: Daily Dispatches

By Bob Henderson
The Wall Street Journal
Friday, April 12, 2024

Gold futures closed at their latest record-high Friday. Analysts are struggling to understand why.

Front-month futures gained 1.3%, or $30.50 a troy ounce, this week and settled at $2,356. Gold has advanced 14% this year.

Several Wall Street experts have lately speculated about who has been buying and pushing prices up.

... Dispatch continues below ...


Bullion Star Opens in the U.S., Selling and Vaulting Gold and Silver

Bullion Star is now open in the United States, offering gold and silver bullion at extremely competitive prices with free delivery. Bullion Star also offers customers a year of free vault storage along with free delivery as well as storage in its secure precious metals vault in Dallas, Texas.

Storing precious metals is challenging. Homeowner's insurance seldom covers precious metals, and safe deposit boxes offered by banks are neither insured nor covered by the government deposit insurance. Bullion Star's vault is an independently run, Class III UL-rated vault with uncompromising surveillance and round-the-clock security.

With Bullion Star you can transact and store your metals securely and confidentially. Your bullion is fully insured against all risks at full replacement value. Bullion Star uses five audit methods to verify the existence and correctness of your stored bullion.

For more information, please visit:

Chris Mancini of the GOLDX mutual fund said that gold prices typically fluctuate with the flows of money in and out of exchange-traded funds such as GLD that hold physical metal, but that outflows from ETFs in recent months suggest that, "there must be physical buyers that we aren't able to see." One big driver of the rally, Mancini said, could be individuals in China who are seeking a hard asset to hold in the face of a faltering real estate market.

Christopher Wood of Jefferies said there has been no evidence of pickup in sales of American Eagle gold coins in the U.S. and that the physical premium of gold bars and coins trading in Singapore are "only a normal 1-2%" compared to 7-8% seen in the last bull market in 2011 and 2012. "The most plausible explanation remains demand from China," he said, but "there is a lack of concrete data to confirm such an explanation."

Daniel Ghali of TD Securities said there has been a "striking correlation between the mystery buyer's appetite and ongoing currency depreciation pressures," particularly in China and Japan. A country could potentially put upward pressure on its currency by selling U.S. Treasurys and buying gold, said Ghali. "What's curious," he said, "is that there clearly appears to be a very strong sense of urgency associated with this buying activity."

Central banks have bought gold in large quantities ever since Russia's invasion of Ukraine in early 2022, largely because of gold's performance in times of crisis, according to polling by the World Gold Council. But WGC data available for this year has not yet revealed a pickup in central bank buying.

* * *

Join GATA here:

Mining Investment Asia
Wednesday-Thursday, May 15-16, 2024
Marriott Tang Plaza Hotel, Singapore

* * *

Toast to a free gold market
with great GATA-label wine

Wine carrying the label of the Gold Anti-Trust Action Committee, cases of which were awarded to three lucky donors in GATA's recent fundraising campaign, are now available for purchase by the case from Fay J Winery LLC in Texarkana, Texas. Each case has 12 bottles and the cost is $240, which includes shipping via Federal Express.

Here's what the bottles look like:

Buyers can compose their case by choosing as many as four varietals from the list here:

GATA will receive a commission on each case of GATA-label wine sold. So if you like wine and buy it anyway, why not buy it in a way that supports our work to achieve free and transparent markets in the monetary metals?

To order a case of GATA-label wine, please e-mail Fay J Winery at

* * *

Support GATA by purchasing
Stuart Englert's "Rigged"

"Rigged" is a concise explanation of government's currency market rigging policy and extensively credits GATA's work exposing it. Ten percent of sales proceeds are contributed to GATA. Buy a copy for $14.99 through Amazon --

-- or for an additional $3 and a penny buy an autographed copy from Englert himself by contacting him at

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit: