Thursday, August 29, 2013

Physical Gold Cannot be Created Out of Thin Air

The LBMA site is reporting the gold forward rate as a negative, meaning that gold forward rates are higher than (U.S.) dollar interest rates. In theory, this isn't supposed to happen. Gold interest rates are always lower than dollar interest rates for one important reason: Physical gold cannot be created by bookkeeping entries.

- James Turk via King World News: