Basel III’s Effect On Gold And Silver

From around 0.5%, the continuous basis drops to 0.4%. From around -0.6%, the continuous cobasis rises to around 0.5%.

As the price of the dollar has fallen, the basis and cobasis are moving back to where they had been. In other words, this is just leveraged speculators positioning and repositioning themselves.

Here is the silver chart.

silver basis continuous

The silver chart basically shows the same thing as gold, with more noise. The price has not moved back to its prior level, and neither has the basis or cobasis.

Could price and basis return to their early-June levels? We must wait and see.

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Disclaimer: The content in this article is provided as general information and for educational purposes only and should not be taken as investment advice. We do not guarantee the accuracy ...

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