The spot price of paper gold as of 12/6/08 is 754.30, but if anyone who can do a search on eBay for items sold takes a look and see what 1 ounce gold eagles are selling for will know things have change when buying gold bullion. You are lucky or bless if you can find a 1 ounce gold eagle that sold for fewer than 954.30. Some of these coins have been struck this year so numismatic value is out of the question.
Why the more than 200.00 dollar premium? You ask; it’s because as time passes the spot price of paper gold is becoming more and more irrelevant. A few “powerful” institutions like New York Mercantile Exchange/ COMEX are not more powerful than market forces.
I say this tongue and cheek but if investors start to demand physical delivery of this abundance of cheap paper gold, will COMEX be the next to big to fail institution. Remember that some jokes do have some elements of truth; I pray this is not one of them.
2 comments:
There are people actively trying to "Bust Comex", by demanding physical delivery of gold.
They believe that the COMEX market has become completely unhinged.
You can see the latest changes in physical vs paper metal prices at SilverBids.com.
The gaps are persistent, but fluctuate enough to make it worth checking our graphs before buying/selling PMs on eBay.
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