GOFO goes Negative?..................from Rico

For the first time since the Lehman collapse and the subsequent AIG bail out, both the one- and three- month Gold Forward Offering Rates have just gone negative overnight.

Yawwwn. [rub sleep from eyes, drink black coffee]

- So what?

THIS what. It means one or more of these things:

- An ETF-induced re-pricing of paper and physical Gold.

- Delivery problems/shortages involving one or more COMEX members (JPM?).

- Liquidation in paper Gold markets

- Shortage of physical Gold.

- A bullion bank failure is underway.

- A major fund unwinding a future pairs trade involving Gold leasing.

......or.......

- All of the above. Hory clap!