Sandeep Jaitly on negative gold forward rates (GOFO)

``As of yesterday, the co-basis on the August gold contract was +0.83% annualised or 145c per ounce (gross.) This means that physical gold holders could exchange their gold for dollars and exchange those dollars for gold futures at a 145c per ounce discount. This has advanced from the 59c available on 22nd May... It seems there is unparalleled demand to exchange dollars for physical bullion (silver and gold) -- so much so that the availability of bullion to settle bullion obligations -- whatever their nature -- is dwindling. ''