CME Group Launches 1-oz Gold Futures to Divert Physical Demand
In a move that may flood the market with more 'paper' gold, CME Group Inc., the parent company of COMEX, the leading U.S. exchange for gold and silver futures, will introduce a one-ounce gold futures contract in January.
This move comes in response to soaring demand from retail investors, spurred by gold's record-breaking rally this year from $2,000 to $2,630---a respectable 32% gain. Smaller-sized gold products have grown increasingly popular among retail investors seeking exposure to precious metals and greater diversification in their portfolios.
Jin Hennig, CME's Global Head of Metals, described the one-ounce gold contract as “a great way to lower the barrier to entry in our market.” She also noted, “Our clientele is also getting younger. That’s a lot more doable.”
Ok, as long as each 1 Oz has a serial number stamped on it that matches the futures certificate, otherwise it's just fraud.
It's basically time-share holidays on steroids.
It's not backed by Gold,just payment for order flow.
Buying this is stupid,it doesn't put any pressure on the price.