In a shocking report on Reuters, LBMA Chairman David Gornall said last month that the 150-member trade body could stop providing GOFO rates if stiffer new regulation makes it too expensive to run.
The Gold Forward Offered Rate (GOFO), the equivalent of LIBOR for the gold market, is used as a benchmark for dealers, central banks and others to swap gold for U.S. dollars with miners who may need gold to meet contracts or investors for short-selling and other purposes.
The LBMA already stopped reporting silver forward rates in November 2012 and are now contemplating if they shouldn't stop reporting the gold forward rates. You can see on the chart below from Kitco what happened to the silver lease rates at that time. The same outcome is expected now for the GOFO rates which are now reported on a daily basis at the LBMA here. The LBMA currently sets GOFO each day by polling its eight major bank dealers on the rates at which they are prepared to lend gold. This could be ending and will make the obvious gold manipulation less transparent for us to spot out.
Continue to read here.
The Gold Forward Offered Rate (GOFO), the equivalent of LIBOR for the gold market, is used as a benchmark for dealers, central banks and others to swap gold for U.S. dollars with miners who may need gold to meet contracts or investors for short-selling and other purposes.
The LBMA already stopped reporting silver forward rates in November 2012 and are now contemplating if they shouldn't stop reporting the gold forward rates. You can see on the chart below from Kitco what happened to the silver lease rates at that time. The same outcome is expected now for the GOFO rates which are now reported on a daily basis at the LBMA here. The LBMA currently sets GOFO each day by polling its eight major bank dealers on the rates at which they are prepared to lend gold. This could be ending and will make the obvious gold manipulation less transparent for us to spot out.
Continue to read here.
Geen opmerkingen:
Een reactie posten