For many decades there is a pattern of physical gold moving from the Western part of the world to the East and back, in sync with the price. Written by Jan Nieuwenhuijs, originally published at Voima Gold Insight. The West-East ebb and flood pattern holds that physical gold migrates from the West to the East when the gold price declines, and from the East to the West when the price of gold rises. What causes this pattern is that gold trades more like a currency than a commodity and that in the past decades, the West has mainly set the price. Cultural differences between West and East can explain the pattern.
The West-East Ebb and Flood of Gold
The West-East Ebb and Flood of Gold
The West-East Ebb and Flood of Gold
For many decades there is a pattern of physical gold moving from the Western part of the world to the East and back, in sync with the price. Written by Jan Nieuwenhuijs, originally published at Voima Gold Insight. The West-East ebb and flood pattern holds that physical gold migrates from the West to the East when the gold price declines, and from the East to the West when the price of gold rises. What causes this pattern is that gold trades more like a currency than a commodity and that in the past decades, the West has mainly set the price. Cultural differences between West and East can explain the pattern.