Commodity Trade Mantra

Posts Tagged ‘GOFO’

Silver At $15? You Can’t Have Any!

If you have waited to this point to purchase silver or gold, the market told you something this past week. The market has spoken and told you “if you want $15 silver, you can’t have any!” The danger, is what will happen when prices are higher and “you can’t have any?” Don’t let this happen to you!

Connecting the Dots in Gold and Silver

In this month’s Markets at a Glance, we present a collection of thoughts on why we think the precious metals – gold and silver are a compelling investment now. We believe that any rational investor considering this collection of facts would consider that the precious metals prices are long overdue for a re-rate.

Gold Forward Offered Rate (GOFO) Turned Negative AGAIN: The Consequences

Historically, GOFO rates (Gold Forward Offered Rate) have only been negative twice since 1999, but have frequently moved into negative territory over the past year. We believe this is a result of on going large shift of gold from the west to the east. GOFO is back negative again, 7th time since July 8, 2013.

The Message Of The Gold Forward And Reverse Repo Rates

Reverse repos are not new to the Fed’s monetary toolkit. The reasons for the reverse repo program really boil down to enforcing a lower limit, or floor, on short-term interest rates that have not conformed due to the US financial system’s quirks regarding banks vs. nonbanks.

Readjusting the Time-Preference of Gold

Sooner or later a more realistic time-preference for gold is bound to return as leasing by central banks dries up. This explains why GOFO tried to go negative on several occasions in 2013. All that’s happening is time-preference is beginning to be rightfully re-instated.

Manipulation, Gold and the Decline of the Dollar - Sprott

Bernanke has lost control of the bond market; sooner or later there will be unintended consequences to the actions of the Federal Reserve and the biggest one will be the decline in the US dollar – Expect higher Gold prices on dollar weakness among other reasons.

Is There Any Gold Left in the Vault?

Not all the Gold recorded to be held in bullion banks is really there – Much of it has been pledged and re-pledged against the debt that keeps the world’s monetary system afloat

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