Gold Backwardation: Should We Care Or Not?

Vince Lanci is on Kitco News to talk about gold backwardation and negative GOFO rates as well as why this uncommon occurrence is happening on this edition of “RESET.” The 1,3, and 6-month Gold Forward Offered Rates (GOFO) rates slid into negative territory in early July as the gold October contract first entered into backwardation. According to Lanci, gold has no reason to ever be in backwardation but it may offer an arbitrage opportunity. The question is, why isn’t anyone taking advantage of it? “The concept of backwardation in gold makes me scared to be short, but the market isn’t overbought yet,” Lanci says. Tune in now to hear Lanci’s take on backwardation and why people seem to be ignoring this market condition that we should maybe keep a close eye on. Kitco News, August 22, 2013. (show less)

Vince Lanci is on Kitco News to talk about gold backwardation and negative GOFO rates as well as why this uncommon occurrence is happening on this edition of “RESET.” The 1,3, and 6-month Gold Forward Offered Rates (GOFO) rates slid into negative territory in early July as the gold October contract first entered into backwardation. According to Lanci, gold has no reason to ever be in backwardation but it may offer an arbitrage opportunity. The question is, why isn’t ... (read more)

Reset

Reset
Echobay Partners' Vince Lanci gives viewers the real deal in classic New York fashion - no holds barred and no restraints. The fast-paced world of trading is broken down to its simplest form as Vince really tells it like it is.

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