Means of Gold Intervention III: Intervention through the Futures Market

Dimitri Speck

Chapter Chapter 17 in The Gold Cartel, 2013, pp 76-81 from Palgrave Macmillan

Abstract: Abstract Physical demand can ultimately only be satisfied with physical material. One fashions a wedding ring from real gold, not from futures and options. Real demand must be served in a real manner, in the event that the material is demanded in physical form. Nevertheless, one hears now and then that the demand for gold can be satisfied with derivatives or ‘paper gold’. In the case of investment gold, it is occasionally, indeed, possible that the gold is not bought physically. If an investor buys an ounce via one of the many legal constructs established today – certificates, exchange traded funds (ETFs) or gold accounts, to name just three – the question whether the gold was physically bought and stored always arises. This is so because it is possible that the investor merely has a claim to an ounce and that, overall, fewer ounces were bought than claims were issued (fractional reserves). It can even be the case that he has only bought the right to participate in the price change per ounce.

Keywords: Central Bank; Future Market; Future Contract; Physical Market; Gold Price (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-28643-7_17

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137286437

DOI: 10.1057/9781137286437_17

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().