GRY gryphon minerals limited

This will cheer you up Something that will flag overnight is...

  1. 608 Posts.
    This will cheer you up

    Something that will flag overnight is this : Worth a read and an understanding

    http://www.zerohedge.com/news/2013-07-08/historic-inversion-gold-gofo-rates-turn-negative-first-time-lehman

    "This is significant and history shows physical gold will be in high demand.
    So how do these two contradictory forces play out? Well, let's have a look at two recent periods in the history of the gold market. One that kicked the gold bull market off in September 1999 and the other that looked like ending it in November 2008.

    In both these periods the GOFO rate fell below zero. This almost never happens. A negative GOFO rate says banks will pay you to swap US dollars for gold. It suggests they are desperate to get their hands on gold...physical gold.

    In late September 1999 the GOFO rate fell to an unprecedented -4%. Look what happened to the price at that point. It exploded higher in a matter of days. The gold market needed a higher price to entice some gold back into the system.
 
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