Physical Gold - Paper Gold has MASSIVE Divergence

Discussion in 'Commodity Futures' started by AMT4SWA, Oct 8, 2008.

  1. achilles28

    achilles28

    Why not buy gold through a coin dealer with cash.

    Then bury it.
     
    #51     Oct 13, 2008
  2. MKTrader

    MKTrader

    Regardless, the enormous amount of gold and silver shorting (increased by tenfold in July-August) is naked shorting in many cases. There's no way all that gold could be delivered. Dealers have to wait months to get physical gold, and pay a premium way over the spot price.

     
    #52     Oct 15, 2008
  3. Cutten

    Cutten

    Where's the source for these physical prices massively above "paper" prices?
     
    #53     Oct 15, 2008
  4. Wallet

    Wallet

    Try to buy physical gold. US mint has stopped production, most all coin/gold dealers are out of physical inventory, if you can find bullion, you will pay $60,80 or higher over spot.

    There is no physical gold to but at the moment.
     
    #54     Oct 15, 2008
  5. 2000 USD Gold in a major deflation? How is that going to work???
     
    #55     Oct 15, 2008
  6. A few years ago you'd call the coin dealer and if you wanted pre 1930's gold coins, they'd be $25 over spot in AU or UNC condition, and you could literally buy 1000 of them if you had the money. The same coins are now $150 or $200 over spot today, and you'd be lucky to find someone with 5 of them at that price.

    My guess is there will be a lot higher percentage of Comex buyers taking delivery as time goes by, because its the only place you can actually find metal anywhere close to spot.
     
    #56     Oct 15, 2008
  7. It won't be Americans buying it. It will be foreigners happy to trade their US dollars for metal.
     
    #57     Oct 15, 2008
  8. achilles28

    achilles28

    Good point.
     
    #58     Oct 16, 2008
  9. Cutten

    Cutten

    There's 8.6 million ounces in Comex warehouses at the moment.

    No offence, but an ET poster is not really a credible source. Got any links or info showing that there is no physical gold around? One would expect if there were such a shortage, then front month gold futures would trade at a big premium, whereas in fact they are at a discount. Spot prices are not massively above futures.

    E.g. Oct Comex gold is 840 offered right now. Where is this $60-80 premium you are talking about?
     
    #59     Oct 16, 2008
  10. jeb9999

    jeb9999

    Nonsense. There is no shortage of the standard 100 oz bars. If you have the cash you can buy all the 100 oz bars you want.
     
    #60     Oct 16, 2008