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Pastimes : The Philosophical Porch -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (6980)	12/2/2014 6:02:07 AM
From: carranza2	Read Replies (2) \| Respond to of 26251

Gold's basis and co- basis curves are off the charts inverted. As you noted, the 12 month GOFO rate is within a hair of becoming negative. It shows the smoothest trend, inexorably becoming lower and lower since 2013. I don't think it can be allowed to go negative, so we will see lots of volatility and manipulation. Any significant demand for delivery at Comex in the near future might break the bank. Of course, delivery in cash is an option, but the price would be high. This is really something. Russian and Chinese demand for physical is huge. While there is no way for a Joe Shmo like me to verify this, everything I read suggests that the demand for bullion in size is allegedly huge, with prices showing substantial premiums over spot. I get back to the question I cannot answer: why the manipulation? What exactly is the point of it all? In the big scheme of things, gold is a tiny, tiny market. Why screw with it?