Last month I wrote about the “Gold Forward Offer Rate” (GOFO), which is the rate used in gold leasing. It was negative through nearly all of July and August, which is extremely rare. This indicated extreme stress in the gold market, in particular, shortages of physical gold. That stress is now gone as of the end of August, rates have returned to normal:
I called the bottom in gold in the August newsletter, which turned out good. Gold hit my target of 1420 at the end of August, which also is good!
For a look at where gold might be headed longer term, you can read July’s article, “Crazy, Crazy Gold”.
Robert Fraser founded an e-commerce provider for business customers, including Xerox, Chase Manhattan Bank, and Samsung. He raised $44 million in investment capital and guided the company to an average of 20 percent month-to-month revenue growth over 6 years, becoming the Kansas City metro area’s fastest growing company between 1997 and 1999. In 2000, Fraser received the Midwest Region Ernst and Young Entrepreneur of the Year Award. Today Fraser is Director of Joseph International, a ministry dedicated to restoring a vision for the marketplace.
For more information or to receive Fraser’s FREE economic newsletter, visit www.josephinternational.org and click “Joseph Insight”.