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Dealer spreads tightning ?
Posted: Fri Jun 17, 2011 4:02 pm
by gizmo_rat
When I first set my pp up in January spreads were 6% which felt too high. Looking again now they are 3% which is more palatable.
Anyone care to speculate why the spread has come in ?
Re: Dealer spreads tightning ?
Posted: Fri Jun 17, 2011 8:42 pm
by MediumTex
It's just supply and demand.
When people start to get gold fever, they will pay higher prices over spot.
Re: Dealer spreads tightning ?
Posted: Sat Jun 18, 2011 6:01 am
by gizmo_rat
Indeed, but why would demand be lower now, it seems counter intuitive. Or is it that puzzling over volume is as pointless as puzzling over price?
Not an issue, but a pleasant surprise as I'd like to have some tangible gold over the paper I have now.
Re: Dealer spreads tightning ?
Posted: Sat Jun 18, 2011 8:43 am
by WildAboutHarry
MediumTex wrote:When people start to get gold fever, they will pay higher prices over spot.
One other market indicator of "gold fever" is the premium/discount of the Central Gold Trust (GTU). On Friday the premium was about 2% over NAV but it has been much higher and lower.