Golden Collateral

The Chicago Mercantile Exchange, or CME have just announced it will allow members to use Gold as collateral against futures and options positions traded on their exchange. I expect this has come about due to member demand and folows the birth of some hedge funds during the year that have started products based in Gold.
With concern over the long-term validity and stability of FIAT currencies and bonds priced in same, I would expect other exchanges to follow suit over the months ahead.

0 comments:

Post a Comment