by Stewart Thomson:
- For decades, the American “paper gold” market (the COMEX) has been the primary market for determining the POYG (price of your gold).
- Most analysts in the gold community believe that demand for physical gold will somehow overwhelm the COMEX, and “liberate” the POYG. They predict vastly higher prices are coming, when that happens.
- I disagree. I believe paper gold markets will continue to be the primary price setting mechanism for gold, but Asian paper gold markets will be where most of the action is.
- Like the COMEX, the Shanghai futures exchange (SHFE) is a paper gold market. Yesterday marked the beginning of extended trading hours (night trading) for the SHFE, and volume was superb.
- The average trading volume during the day is about 90,000 contracts. The first night session saw more than 220,000 contracts change hands.
Plugin by: PHP Freelancer