The gold front month is in backwardation again.
Pointed out yesterday the phenomena, or signal. It’s a signal Patrick. You miss it when you go to the next month.
Pointed out yesterday the phenomena, or signal. It’s a signal Patrick. You miss it when you go to the next month.
Dr. Antale Fakete wrote about this many years ago. Monetary metals should never be in backwardation. Unlike corn or some other non monetary commodity which routinely go into backwardation after a bumper crop.
He suggested that if backwardation should ever occur that it would signal the end/trouble of the payment system. The supply chain. The signal started to appear in the last of the third qtr of 2019 and the fourth
qtr of 2019. It foretold what we are experiencing for the last six months. It’s reappearance is not a good sign for the coming months unless your a goldbug.
Notice how wildly the miners swing while gold is very steady.
if I see backwardation on next contract in front… I’ll agree we have issues.. as time decay not an issue.