TRADER TELLS BLOOMBERG: “WE TRIED TO BUY GOLD 8 WEEKS AGO AT $1200, WE STILL HAVEN’T RECEIVED OUR PHYSICAL GOLD!”
AUGUST 15, 2013
Did Bloomberg just inadvertently ignite a gold bank run? Oops.
Mihir Dange, co-founder of commodity trading firm Grafite Capital clarified gold backwardation for Bloomberg, predicted a massive move higher in gold once $1350 is taken out to the upside, and dropped this bombshell on the Bloomberg host:
“Gold is in backwardation right now. The spot futures is above the next month. I’ve seen that once in my 12 year career, and every time we’ve seen that we’ve seen a huge rally in the gold market. I think what that means right now is there’s heavy demand for the physical with it trading so cheap. China reported in the first half of the year they had a 50% increase in consumption of gold.
In our office we tried to buy gold when it got down to around $1200 to $1250, it’s been 8 weeks, we still haven’t received our order of physical gold!“