CME to offer 1-oz gold futures contract
derryb
Posts: 37,338 ✭✭✭✭✭
No metal delivery, settled in cash only. But, it could drive demand for the real stuff.
"This imbalance (paper vs. metal) poses several concerns, chief among them the heightened risk of a future run on physical gold. Such a scenario could see the price of scarce physical gold soar while the value of paper gold plummets, creating a significant market shock."
Capital investment depends on confidence. - Martin Armstrong
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blitz's wetdream!
I knew it would happen.
Papper gutter yes, paper gold not so much. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Papper gutter yes, paper gold not so much
Please explain. Why not? Haven't you been saying how easy and fast it is to trade paper silver? Why not paper gold?
I knew it would happen.
Because the Au is a lifelong investment, it is USUALLY not for sale. The gutter must be traded frequently to realize any value. Trading physical is hardly worth the effort once premiums and limited buyers are factored in. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
https://www.cmegroup.com/media-room/press-releases/2024/12/05/cme_group_to_launch1-ouncegoldfuturestomeetsurgingretaildemand.html
CME Group to Launch 1-Ounce Gold Futures to Meet Surging Retail Demand
https://www.cmegroup.com/markets/metals/precious/e-micro-gold.contractSpecs.html
Micro Gold Futures - Contract Specs
deliverable 10 ounce contract
I don't know what the "ratio" means. You would never have actual bars of gold trading hands on the COMEX.
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High-frequency trading of a paper proxy (such as SLV) is nothing more than gambling.
If you like to gamble, then fine. But you are NOT the "House".
Physical silver can be a long-term hold just as well as gold or other things.
Just buy it when the price is less volatile and avoid the up spikes and paper proxies (SLV).
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must be traded frequently to realize any value
That's not what my spreadsheet indicates.
I knew it would happen.