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overtheedge
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(angl) Why Does The "Paper Gold" Price Track The Physical Gold Price ?

- Keith Weiner - keith weiner

Why Does The "Paper Gold" Price Track The Physical Gold Price ?

It would be far more appropriate to switch this around. Why does the "Physical Gold" price track the Paper Gold price.

Now the answer is simple. The market is legalized gambling. There is little buying and holding physical compared to paper. Paper is far more convenient when it comes to trading, but we can make it easier still. It is all on the computer so no need to look for the paper either. There are vastly far more gamblers than producers and end users combined. HST ring a bell? Perhaps the house gets its bite?

If you don't know who the sucker is, it is you.

Commented 4297 days ago

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Beginning of the headline :It's curious, isn't it? So-called "paper gold" (a futures contract) has a price that is not only very close to physical gold, but it remains locked to it. This is despite the fact that "paper gold" is reviled in the gold community. I am writing this on Sunday evening with little liquidity in the market, and yet spot gold (XAU) is 1665.80 and the December future (GC Z3) is 1674.40... Read More

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