peaceandlove
05-27-2009, 04:18 AM
Big Decline in Gold Derivatives
Catherine and News & Commentary, May 25, 2009 at 11:05 am
Gold Derivatives: The Tide Turns
By Reg Howe
On May 19, 2009, the Bank for International Settlements released its regular semi-annual report on the over-the-counter derivatives of major banks and dealers in the G-10 countries and Switzerland for the six months ending December 31, 2008. The total notional value of all gold derivatives declined from $649 billion at mid-year to $395 billion at year-end, or almost 40%. Although gold prices fell from $930 to $870 (London PM) during the period, gross market values dropped only marginally from $68 to $65 billion, probably reflecting the impact of increased volatility on valuing options.
To link of article and charts: http://solari.com/blog/?p=3013
Catherine and News & Commentary, May 25, 2009 at 11:05 am
Gold Derivatives: The Tide Turns
By Reg Howe
On May 19, 2009, the Bank for International Settlements released its regular semi-annual report on the over-the-counter derivatives of major banks and dealers in the G-10 countries and Switzerland for the six months ending December 31, 2008. The total notional value of all gold derivatives declined from $649 billion at mid-year to $395 billion at year-end, or almost 40%. Although gold prices fell from $930 to $870 (London PM) during the period, gross market values dropped only marginally from $68 to $65 billion, probably reflecting the impact of increased volatility on valuing options.
To link of article and charts: http://solari.com/blog/?p=3013