A lot of debate in this thread with no clear cut answer:
http://www.analystforum.com/forums/cfa-forums/cfa-level-iii-forum/91322921
Appreciate a thought or two.
I’m not working today.
That said, the lease rate is rent net of storage costs.
Whether it’s better to buy physical gold or gold futures depends on the rent vs. storage costs, and whether or not I can lend to someone who enjoys a convenience yield (for which I can charge them, at least partially). In short, it depends on whether gold futures are in contango or backwardation.
I have no first-hand experience with gold futures, so I cannot say which is more profitable.
Should it show up on the exam, they’ll tell you.
(So much for not working today!)
Enjoy your day off, you’ve earned it!
Thanks, Andy!
Best of luck tomorrow!
s2000,
you have been a tremendous help Sir.
Thank you.
On a scale of 1-10, how important is relaxing when we take L3?
Was that the Holmes? I had no idea we were in the presence of greatness. I love you, man. You’re my favorite out of all the Schweser guys. We missed you in level 3 this year. They should give you more air time there.
has s2000’s identity been revealed?
They’ve asked me do record some videos this Summer. We’ll see what they have in mind.
It’s been my distinct pleasure, I assure you.
I consider it immesely important, which is the reason I tell my candidates to start with questions in their topic areas of strength. Get some points, relax, take a deep breath, and dominate this beast.