CME to offer 1-oz gold futures contract

derryb

More paper gold

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."

jmski52

blitz's wetdream!

blitzdude

Papper gutter yes, paper gold not so much. RGDS!

jmski52

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?

blitzdude

@jmski52 said:
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?

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!

MsMorrisine

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

MsMorrisine

https://www.cmegroup.com/markets/metals/precious/e-micro-gold.contractSpecs.html

Micro Gold Futures - Contract Specs

deliverable 10 ounce contract

GoldFinger1969

I don't know what the "ratio" means. You would never have actual bars of gold trading hands on the COMEX.

dcarr

@blitzdude said:

@jmski52 said:
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?

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!

.

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).

.

jmski52

must be traded frequently to realize any value

That's not what my spreadsheet indicates.