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. 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