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[Miloman]

I get that people want to make money by leasing the stuff and buying back for cheaper.

When you say...

1. There has been no squeeze on physical gold supply for purchase the squeeze is on gold available to lease. Yes, people are scrambling for the stuff to sell it. They can't sell enough of it!

Shouldn't this affect leasing rates?

 

[wrcmad]

I get that people want to make money by leasing the stuff and buying back for cheaper.

When you say...

1. There has been no squeeze on physical gold supply for purchase the squeeze is on gold available to lease. Yes, people are scrambling for the stuff to sell it. They can't sell enough of it!

Shouldn't this affect leasing rates?

Yes. I mentioned it.:

Negative GOFO reflects heavy speculating on the short side, and more shorting means more demand to lease gold, and more demand for leasing drives up the lease rate, driving GOFO down.

 

[Porcello]

I read that GOFO data is not being published anymore by LBMA since Feb this year?

 

[Porcello]

I found a post by Bron, end 2014, where he discusses negative GOFO. He also points out at the possibility of that being caused by increasing gold leasing rates due to demand by shorts as wrcmad says:

http://goldchat.blogspot.co.uk/2014/12/how-historic-is-this-negative-gofo.html

In another post two days later he discusses the historical implications of negative GOFO, since many claim that in the past negative values were a signal of a bottom.

 

[wrcmad]

I have learned a lot over the years by reading Bron's posts.

 

[Porcello]

So, now the question would be... Why has been GOFO deprecated?
Thinking logically, I can only conjure 3 possibilities:

- it was useless or it became useless
- it's been replaced by something better
- obfuscation

Any idea?

 

[bron suchecki]

I have learned a lot over the years by reading Bron's posts.

And I am still learning so that makes us equally stupid.

 

[bron suchecki]

So, now the question would be... Why has been GOFO deprecated?

Regulators. GOFO was done the same way as LIBOR so the banks submitting GOFO quotes just couldn't be arsed with all the extra compliance and risk of getting sued.

 

[Porcello]

So, now the question would be... Why has been GOFO deprecated?

Regulators. GOFO was done the same way as LIBOR so the banks submitting GOFO quotes just couldn't be arsed with all the extra compliance and risk of getting sued.

Obfuscation it is, then!

 

[wrcmad]

So wrcmad, what does backwardation mean.

Backwardation is when GOFO is negative, or GLR is higher than LIBOR.
Why?

Clear I don't know why you bother - try and ask the chirping cricket it may be more valuable ( perhaps that is his selfie?). wrcmad knows exactly what you are implying by backwardation in PM. So he gives you a definition instead of explaining why prices are higher now than at a future date - so cunning a plan Baldrick.

I will continue watching Blackadder as he is far more entertaining than wrcmad and certainly Baldrick is far smarter. I suggest wrcmad write a new definition of backwardation for Wiki, one which covers all the subtle angles. Meanwhile, we the permabulls will continue sitting tight on our PM. wrcmad can then continue loading up on investment properties with bank debt yes another cunning plan as the market peaks out. Seriously ......

Full retard is a compliment this guy who has lost his last few marbles. Enjoy yourself wrcmad.

Source: IQtard