UPDATE ON THE NEGATIVE GOFO: GOLD HAS BOTTOMED – HEADED MUCH HIGHER…”I’m not worried about how high in price gold is going, I’m worried about what the world around us will look like when it gets there.”
AUGUST 16, 2013
The GOFO rate has been negative now for a historically unprecedented 30 days.
The only conclusion that can be drawn from this situation is that the bullion banks in London are scrambling to find physical gold that can be delivered into the massive demand coming from Asia, specifically China. I also believe that the duration and severity of the negative GOFO will translate directly into a commensurate move higher in gold that will shock everyone.
Unfortunately, the best we can hope for is that the next move in gold does not culminate with the cataclysmic currency reset that we all know is coming – i.e. the dollar is replaced as the world’s reserve currency, which will render the U.S. largely destitute:
I’m not worried about how high in price gold is going, I’m worried about what the world around us will look like when it gets there.