On the date of your message, it appears to me that the premium was positive 0.23 percent. More concerning to me is that the derived lease rate for gold is negative for one, two and three months. To me this means that central banks are paying bullion banks and hedge funds to borrow gold that they may well short for a quick profit and at the end of subject terms pay back the central banks with gold that is then depressed in price. They receive interest and the money made on the short sale. Buying gold now appears that you may be fighting central bank efforts to lower the price of gold. China, India and other buyers better have more muscle than the central banks that are doing the selling or we are going to endure more suffering.
Will some knowledgeable person comment on the above? All comments appreciated.
London gold bars are in short supply....that's what the negative gofo rates says, and that's bullish for the gold price. I think the ability of hedge funds and western central banks to manipulate the price of gold with all their financial acumen is coming to and end....
Sprott trusts with their redeemable features are excellent ways to invest in the metals. They will eventually go to substantial premiums over cash, ESPECIALLY if / when the COMEX goes to cash settlement only....and that may not be far away. I hope Sprott has plans now to start building up their trusts with more gold and silver, otherwise the day may not be too far out where there is substantial volatility in the premium to NAV and share price over and above the price of gold and silver.
I am concerned that the logistics, legalities and the availability of metal may, if not already, make the creation of more shares based on new metal procured unrealistically difficult. There may be no profit in doing so for them, especially without effect on current shareholders' stakes relative to NAV..
Absolutely right. Based on the history of the NAV premium, its easily possible to PHYS to be priced at a 5% to 10% premium over Comex Gold.. Just check Sprott Silver Trust - they have excellent info on historical premiums to NAV.