Tuesday, December 09, 2008

Gold Backwardation - BNN 12/8/2008

Hat tip FOFOA for video link

2 comments:

Max said...

Finally someone is saying the word "conspiracy" concerning the demand vs. supply price of gold.

Anonymous said...

I believe that the backwardation we're seeing is the public's strong preference to hold physical vs paper. It neither proves nor disproves a conspiracy. However, the physical shortage by the US mint raises questions about where that supply that would otherwise be used is headed - the Middle East and Asia, from what I can gather. Still, why isn't the mint able to bid market price and continue to mint gold coins. To me, that is as bothersome as anything.