It could be that the physical market is lagging, and will eventually sell off as well.
FORBES: Why Are Small Investors Still Buying Gold? A Psychology Lesson
But, if asked many would dismiss it as simply a case of the paper market being a leading indicator for the physical market.
FORBES: Why Are Small Investors Still Buying Gold? A Psychology Lesson
Meanwhile, traders will also keep tabs on the physical market.
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While the physical market is seeing a surge in buying interest, the bleeding from the exchange-traded funds continued all this week, with nearly 60 metric tons flowing out of ETFs, said Commerzbank.
FORBES: METALS OUTLOOK: Tug-Of-War Action Possible For Gold Next Week
However, he said, because the biggest ETFs, like the SDPR Gold Trust, are physically backed, it could have an impact on the physical market because those funds then free up more supply which could pressure prices.
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Right now, for example, the bulk of the natural gas traded in the physical market (as opposed to financial contracts traded on the New York Mercantile Exchange) is still handled by "smile and dial" phone brokers at firms such as Prebon Yamane and Amerex.
The value of the UK's physical books market fell by nearly 5% over the course of 2012 in value terms, according to market researchers at Nielsen Bookscan.
Gold-backed ETFs can accelerate price declines in the metal as investors cash out, releasing physical gold into the market.
For my purposes today, I want to construe "financial infrastructure" very broadly, to include not only the "hardware" components of that infrastructure--the physical systems on which market participants rely for the quick and accurate execution, clearing, and settlement of transactions--but also the associated "software, " including the statutory, regulatory, and contractual frameworks and the business practices that govern the actions and obligations of market participants on both sides of each transaction.
However, physical indicators in the Chinese market have turned more constructive of late, signaling tightening conditions.
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On Monday, another traditional leg of support for the gold market physical demand in Asia started to look shaky, further spooking investors.
Countering the bearish view on gold in futures and ETF markets is the physical buying interest, several market watchers said.
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He suggested such a product might be most beneficial for large or institutional investors who might be worried about whether they would be able to gain access to physical bullion on the open market in a time of a crisis and thus high demand.
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And a final benchmark price stems from a complex summation of interlinked spot, physical forwards, futures, options, and derivatives markets, which means the paper market is almost as important as the physical one.
To begin with, the SPR faces inherent physical constraints in supplying the oil market.
It defines regeneration as reversing economic, social, environmental and physical decline in places where the market will not be able to achieve improvements without help from the government.
BBC: Regeneration funding targeted on communities in decline
More recently, the firm leveraged its market leadership in selling physical books online to become the dominant vendor of e-readers, leaving potential rivals such as Sony unable to gain much traction.
Some say it's a slowdown in actual physical gold sales in the crucial India market.
That is slightly bearish for the gold market as it is limiting physical buying interest from the Chinese this week.
There is market talk this week that physical demand for gold will pick up significantly after prices have backed off recently.
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There is also market talk this week that physical demand for gold will pick up significantly after prices have backed off recently.
FORBES: Comex Gold Ends Higher on Bargain Hunting, Bullish "Outside Market" Forces
Reports say better physical demand for gold is supporting the market.
FORBES: Comex Gold, Silver Higher, with Gold back above $1,500
That may be slightly bearish for the gold market as it could limit physical buying interest this week, due to demand from China slowing during its holiday season.
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Though its games may be less flashy than many of the Internet games and consoles on the market, GameCam provides real physical activity -- a plus for inactive game addicts or busy executives needing stress relief.
Investec Securities said, however, that, while lower prices could trigger stronger physical demand from jewelry markets, this market is likely to pick up only around June or July as seasonal restocking takes place, driven initially from India.
Digital distribution sales of videogames are taking an increasingly large share of the market, compared to sales by physical retailers like GameStop.
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Good physical demand for gold continues to underpin the market, reports said.
FORBES: Comex Gold, Silver Slightly Lower as Key U.S. Jobs Report Awaited
If the paper gold market continues to sell off while physical acquisition continues to accelerate, this is a strong warning about the economic recovery and a leading indicator that could set the stage for a new bull market in precious metals.
FORBES: Why Are Small Investors Still Buying Gold? A Psychology Lesson
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