The Grateful Dead is like licorice: not everyone likes licorice but those who do like licorice, really like it. - Jerry Garcia. Gold is for the collapse of paper currencies: most do not understand that this will happen; but those who do, really like their gold. - Dave in DenverI like licorice, the Grateful Dead and gold.
I 've been writing about the significance of the negative gold/dollar swap rates, otherwise known as the Gold Forward (GOFO) rates, published daily in London by the LBMA (London Bullion Marketing Association. Unfortunately, the signficance of the negative GOFO rates are lost on most people.
However, the reason owners of physical gold being held in their possession are being paid a rate of interest to loan that gold out - with the loan being collateralized by dollars - is because of an extreme shortage of physical gold that can be delivered.
Where is this gold going? Asia, of course - primarily China. I wrote an article for Seeking Alpha which shows how we know this to be the case: - Physical Gold/China (link) - and why this "disintermediation" of physical gold will lead to a massive move higher in the price of gold.
I guess you could say we can fully expect that gold will keep on "Truckin.'"