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It is expensive because..of the risks premium associated with the storing a highly volatile asset. If I had given 1 oz of gold for storage on Jan 2, 2017 the p
by thisisit 9y ago
It is expensive because..of the risks premium associated with the storing a highly volatile asset.
If I had given 1 oz of gold for storage on Jan 2, 2017 the price was 1150 USD. If something had gone wrong in Sep, when the peak price was reached the payout would be 1350 USD, a 17% premium on the storage price.
In comparison, I gave 1 BTC for storage on Jan 2, 2017 at 1025 USD. If something were to go wrong today the payout needs to be 8217 USD, a 700% premium.