However, the direction and velocity of these prices relative to spot prices have a very high correlation to inflation.
Since money is worth what people think it is the first place that inflation appears is in higher premiums in futures markets. It's really more a self fullfilling prophesy than a true causative factor. >>
They do have meaning, though. ...The back months can indicate bullish or bearish perspectives. In addition, you need to factor in current interest rates.
"Poets are the unacknowledged legislators of the world." PBShelley
<< <i>Certainly as gold prices rise; the collector premium will diminish over the bullion value on the spousal gold coins. At some higher gold (or silver or platinum) price the premium could theoretically disappear altogether. But we are talking about much higher gold prices which doesn't look so improbable anymore.
But that is true of just about every coin or even medal with a high bullion content. >>
The price is relative though so your assertion isn't quite correct. When is high, high? You could have said the same thing when the price of gold was $300.
"Poets are the unacknowledged legislators of the world." PBShelley
Comments
<< <i>Futures prices have almost no meaning.
However, the direction and velocity of these prices relative to spot prices have a very high correlation to inflation.
Since money is worth what people think it is the first place that inflation appears is in higher premiums in futures markets. It's really more a self fullfilling prophesy than a true causative factor. >>
They do have meaning, though. ...The back months can indicate bullish or bearish perspectives. In addition, you need to factor in current interest rates.
<< <i>Certainly as gold prices rise; the collector premium will diminish over the bullion value on the spousal gold coins. At some higher gold (or silver or platinum) price the premium could theoretically disappear altogether. But we are talking about much higher gold prices which doesn't look so improbable anymore.
But that is true of just about every coin or even medal with a high bullion content. >>
The price is relative though so your assertion isn't quite correct. When is high, high? You could have said the same thing when the price of gold was $300.