If gold does trade in backwardation against US dollar for a protracted period…, it will mean that a collapse of the dollar has begun. Think about it. How could gold go into backwardation for any prolonged period? If it does, it would mean that no one is willing to take the risk of selling their hoard and instead hold US dollars. It would mean that no one is willing to accept the risks that come with holding dollars while waiting until they can be used at a future date to exchange back into gold. FULL ARTICLE
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4 comments ↓
I think the collapse of the dollar started a long, long time ago- 1913-ish, wasn’t it? But yes, I’m sure there’s some indicators of the last, fast, crash to rock-bottom. Really interesting article!
Seems like a pretty basic supply-and-demand situation here. If gold is in backwardation for an extended period, prices will eventually drive way up. Is that a signal for the weakness of the dollar? The article is pretty convincing, in my opinion.
Yes it would seem to be a supply and Demand situation…sadly, the greedy mongruls ( oil speculators & NOT retirement funds) did more to hurt the american economy as We the people did…after all many american have and continue to live beyond their means. Many kids and grand kids have an attitude’ of ” entitlement” …and here it is the fault of the ” boomer’ generation”
but you’ll never hear anyone to ever admit to such a thing huh ?
I think it’s important to lay blame where it really belongs. While some corporations made some terrible choices, and others engaged in fraud, this isn’t the vast majority of companies. Think about it, you have the free choice to not do business with most, if not all, of these companies.
The government, on the other hand, created this problem, with artifically low interest rates to encourage wild financial speculation, too many regulations driving many businesses to seek labor outside the country, printing too much money, devaluing the dollar, and the list could go on for pages and pages.
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