The GOFO rates that everyone is watching continued negative for an unprecedented fifth straight day today. If you want to follow along next week, you can find the rates here:
http://www.lbma.org.uk/pages/index.c...d=55&show=2013 Again, what this purports to demonstrate is an incredible demand and desire for physical gold, such that it is currently more valuable than holding dollars. Physical holders are unwilling to exchange their gold for a futures contract, even though they are guaranteed a significant short-term return. Why is this? Because physical holders either do not trust the system or there simply isn't enough gold available to close his hole. Either way, the past three occurrences of negative GOFO have led to sharp, short-term rallies so many pundits are watching this closely. We'll see...