The gold market's great global migration sends bullion rushing East

Logistical issues, rising rates make gold less attractive as an investment in the West. As a result, gold and silver are selling at unusually high premiums in Asia

There’s a global migration underway in the gold market, as western investors dump bullion while Asian buyers take advantage of a tumbling price to snap up cheap jewellery and bars.

Rising rates that make gold less attractive as an investment mean that large volumes of metal are being drawn out of vaults in financial centres like New York and heading east to meet demand in Shanghai’s gold market or Istanbul’s Grand Bazaar.

In fact, it can’t move fast enough.

Logistical issues combined with quirks of the market are making it difficult for traders to get enough bullion where it’s wanted.