GOFO it?.....................from Rico

GOFO=Gold forward rates. The difference between present cash Gold price and the future Gold price.

Backwardation=Negative GOFO

Negative GOFO=When the price of present Gold exceeds the future Gold price.

- Put another way, the price people are willing to pay who want their Gold in-hand NOW, and not at some promised 'future' date when that 'promise' may not be kept (say another MF Global event, or an exchange default/delivery failure).

Now WHY would anyone NOT 'trust' a banker's 'promise'...say someone as honest and upstanding as JPM, for example?

- Maybe because JPM is down to ONE TON of physical Gold? And because they have been asked to deliver on forty-some tons of sold ('promised') physical Gold? (Surely it has nothing to do with 'rigging' energy rates, the LIBOR rate, or as with HSBC laundering drug money, or the Wells Fargo's mortgage fraud...)

Take a look at what one ton of Gold actually looks like.

- It's not all that much, is it?

But the problem isn't just JPM, but the entire COMEX system which has leveraged paper Gold 100:1 to physical Gold.

- The COMEX Gold inventory doesn't look like much right now, either.

It's looking like the days of fraudulent 'paper Gold' and the easy money from this fractional scam are ending [read: no physical Gold].