The Sane Investor

Gold: The Last Carry Trade

I was thinking about it last night, and the concerns that I presented in statements (1) and (2) above could be compensated for if the person using gold as a carry trade were to sell gold on the spot market and then buy one month gold futures. However, if anything this would make it such that the spot price of gold would be much lower than the paper value of gold. This seems to directly conflict with your argument that the gold carry trade is lowering the paper value of gold.