Tuesday, 9 December 2008

Backwardation buzz

After seeing this article on the backwardation of gold prices it now seems that the mainstream have picked up on the story:

The gold backwardation theory

Checking in today and backwardation is still in place. At 1430 GMT Tuesday December 9 spot gold was trading at some $768 while Comex futures were at 766.40.

No small call, Fekete is essentially calling the end of the fiat-dollar system - just as the US Treasury sells 3-month bills at the lowest level since 1929, and CDS spreads on sovereign debt continue to wander - hmmm does he have a point?

It certainly sounds like the talk of conspiracy theorists.

Except that this article was written for the Financial Times!