I guess I don’t understand the whole spot price vs. future price thingie. I mean even as things sit today, the “quoted” {who in the world puts quotes around “quoted”?) spot IS NOT what you would pay for the real deal.
If people revolted against buying futures, doesn’t it make sense that current spot would skyrocket?
But this gal says it means the relationship between gold and the dollar is done. Kinda like the “spot” is meaningless, even though it’s in a sense, more meaningful then the future price.
My head hurts!
The “spot price” is essentially the price of paper gold. The price of bullion trades at a the spot price plus a premium that reflects the real cost of buying gold. The paper gold may or may not be backed up by an actual store of bullion. There is evidence that much of it is not. The real price of harrd gold is somewhat higher than the spot price now because the lower spot price has people going to their dealers for more bullion. Demand rises for bullion even as it falls for paper gold- same thing for silver. The spot price was forced down twice when very large volumes of paper gold were sold all at once at a time of day when there were few buyers active, moves that would seem to be calculated to force the price down rather than to obtain maximum return. China benefits because China ramps up its buying whenever the price falls like that.