As we learned in “The Significance of Gold Backwardation Explained”, backwardation is a sign of a very tight market, and a market that will be tight for sometime into the future either 1) current supply is very tight, 2) future supply is projected to be very tight, or 3) there is a severe distrust in counterparties that the short positions can deliver the goods on time per the contract, or vice versa that the long positions will not have the cash. FULL ARTICLE
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1 comment so far ↓
Way to Go jake ! it seems to me as an owner of a “small ” amout of “precious” metals as the politically correct marketing ads say…and i feel that those who have all the silver keep the prices here in america rather low…and while gold is has been at or 900.00 dollars…thanks to the fiscal mess America and the global world is in…Gold hasn’t really been able to get or to stay over 1000.00 an ounce as no one has the where with all to buy more than an ounce or two at a time…as in the “average middle class american working person/family”…
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