Gold Backwardation: Should We Care Or Not?
Aug 23, 2013
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 ... (read more)