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Re: Red Alert: Gold Backwardation
Odd backwardation twist: deflation is caused by gold prices "kept" low Did we not have lower gold and a falling dollar and falling interest rates in the 80's and 90's? If the dollar was falling those years, was gold "kept" low then? If so, then where was the deflation during that time? These guys really have to get off… -
Re: Red Alert: Gold Backwardation
Did we not have lower gold and a falling dollar and falling interest rates in the 80's and 90's? If the dollar was falling those years, was gold "kept" low then? If so, then where was the deflation during that time? In short, 1982-2000 was a commodity down cycle. The down half of a supercycle. Gold was "kept" low by having… -
Re: Red Alert: Gold Backwardation
Lower prices in futures contracts which are further out normally means that market expectations are for lower gold prices in future months. Normally, the further out month prices also incorporate interest and carrying charges, so even if the market were flat you would still expect future months to be priced slightly higher… -
Re: Red Alert: Gold Backwardation
<< <i>Lower prices in futures contracts which are further out normally means that market expectations are for lower gold prices in future months. Normally, the further out month prices also incorporate interest and carrying charges, so even if the market were flat you would still expect future months to be priced slightly… -
Re: Red Alert: Gold Backwardation
From bank and stock analyst Reggie Middleton commenting on broken pricing mechanisms throughout the economy. It's difficult, if not impossible to have a true market, never mind a free one, unless prices are generally allowed to seek their own levels. Without accurate price discovery, you have nothing but socialism. Asset…
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