With the LBMA no longer publishing GOFO rates, readers have inquired why we don’t begin calculating and publishing the rates at SD.
GoldMoney’s James Turk has responded to the inquiry with an articulate elucidation of why futures markets cannot be used to calculate GOFO (or SIFO) rates.
The futures market cannot be used to come up with GOFO. The spreads quoted in paper are far different than the spreads quoted for real metal…
Turk’s full MUST READ commentary is below: