Gold is rising to challenge all-time highs, with Open Interest on Comex soaring faster than ever seen before. It reflects a physical liquidity crisis. The market report for this week.
Alasdair, I read elsewhere that the BIS is considering classifying gold as a Level 1 HQLA (high quality liquid asset). Could you explain the probability and implications of this step for your humble readers?
Can't help thinking that the ' EFP Market ' is indeed one massively un-reported and fairly un-recognised ' Black Swan ' that is ripe for both barrels from a 12 bore ..??
Indeed. I would have less to quibble about if Comex stats were transparent rather than angled towards concealment. As it is, the system is devised to rip off Comex's users.
Interesting times ahead Alasdair. I look forward to listening to you discussing this with Eric tomorrow morning. 🤞of course.
Alasdair, I read elsewhere that the BIS is considering classifying gold as a Level 1 HQLA (high quality liquid asset). Could you explain the probability and implications of this step for your humble readers?
Colin
Physical should be HQLA and I have little doubt it will be. The BIS's sticking point is forward contracts which are clearly derivatives.
Thanks .
Can't help thinking that the ' EFP Market ' is indeed one massively un-reported and fairly un-recognised ' Black Swan ' that is ripe for both barrels from a 12 bore ..??
Indeed. I would have less to quibble about if Comex stats were transparent rather than angled towards concealment. As it is, the system is devised to rip off Comex's users.
Thank you Alasdair.