- We’ve been on the lookout for collateral scarcity primarily via the T-bill market, and that’s a good place to start, yet looking back to last March, the relationship between bills and bullion was uniquely strong.
- No gold “slams” in 2021, though; not even last Tuesday morning during what had been otherwise a near-perfect example of this scramble for collateral (scarcity).
- Since gold’s opportunity cost is defined by interest rates, the drop in them and the possibility this signals lower rates farther out into the future, plus the dour outlook in real yields, it really should’ve been a good month of June for the metal. But it wasn’t.
For further details see:
Golden Collateral Checking