Gold futures and physical price disconnect
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Started by wglassfo - April 11, 2020, 7:42 p.m.

I have been trying to read as much as I can about gold prices

Seems gold futures and physical have a disconnected price relationship

Has this ever happened before

Does anybody know why the disconnect in price???

For every article I have read there seems to be a different theory 

Also a great difference of opinion in future price of gold 

Obviously futures lend them selves to different opinions, that much I undeerstand

The disconnect in price I don't understand

I

Comments
By metmike - April 12, 2020, 2:47 p.m.
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Thanks Wayne!

I don't follow the price of gold close enough to answer that question without digging for gold news.


                Gold futures hit 7+ yr high            

                            5 responses |               

                Started by pj - April 9, 2020, 5:32 p.m.            


https://www.marketforum.com/forum/topic/50296/

By metmike - April 12, 2020, 2:53 p.m.
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Not sure if this helps or not but its good information that helps me understand more clearly:

Gold Exposed:  Spot Gold versus Gold Futures


http://www.danielstrading.com/resources/offers/guides/gold-exposed-guide.pdf


Paragon Commentary

                                          

            Gold Futures vs. Physical Gold vs. Gold ETFs        

http://www.paragoninvestments.com/research/paragon-commentary/2012/06/08/gold-futures-vs.-physical-gold-vs.-gold-etfs


By metmike - April 12, 2020, 2:54 p.m.
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Exchange For Physical on Gold Futures

                                                                    


https://www.cmegroup.com/trading/metals/precious/gold-futures-and-options/exchange-for-physical-gold-futures.html

By metmike - April 12, 2020, 2:55 p.m.
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By wglassfo - April 12, 2020, 3:36 p.m.
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Tks Mike

I have read that and more

Some how I get the felling all is not as it should be in the world of physical gold

Or at least what we are told

By bear - April 12, 2020, 5:38 p.m.
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yes, wglassfo, this happened back in late 08, when gold and silver spiked down, before they ran up to their 2011 highs.  

it was much more pronounced in the silver market.  


it is like a boomarang move.  they spike down, before surging to much higher prices. 

i expect a company like newmont to run up to challenge its old highs as gold tests its old highs.   (disclaimer - i am long newmont, and other metals shares).