EmptyVaultDavid Mcalvany has released an excellent commentary on gold’s now 8 week old backwardation- and the obvious implications: China and India aren’t willing to wait 3, 6, or 9 months for physical metal, they want their gold NOW!
“It’s not uncommon to have backwardation in any market, but it usually happens a very MINOR amount, and only for a day or two. We’re now into our 8TH WEEK of backwardation, 2 full months. It’s not the degree to which we are in backwardation, but the duration which I think is very intriguing.”

 

buff sale(2)

  1. Congratulations-You’ve Lost!
     
    International Bankers are going to implode, Meltdown, or become desperate to call out war because UNITED STATES is a Corporation! They make money on the winning side and the losing side.  So please contact your Representatives & tell them NO with the war with Syria.  http://youtu.be/37FSOG4r3Ns
     This is a link to find out where to contact Congress

    Silver Doctors can only report on the news, but they cannot initiate any action.
     

  2. Backwardation?  So what, it appears no one really cares about it. Gold still under $1400 and silver at $23 oz.  If the physcial demand was strong the price would move higher.  
    How much longer can the backwardation and gold/silver is almost gone guys keep saying the same thing every month before they have no more crediblity?   No one in the market believes them.

    • “If the physcial demand was strong the price would move higher.” 
       
      Gold has risen in price $200 over the last 40 trading days while in backwardation. Help me understand your comment.

    • The gold price rebound is after a massive decline, I wouldn’t put much into that fact.  If we were hitting all-times in price because of backwardation, then there would be something to it.
      The case I am trying to make is, the market knows all of this “bullish” information, yet the prices remain well below their highs of over 2 years ago.

    • UglyDog
      Bay of Pigs  

      Why are you entertaining this guy’s comments at all? He’s an anti-metals provacteur who’s ALWAYS negative on physical, and ALWAYS because of paper action. Paper metal claims are as phony as a wooden nickle, yet his comments treat paper quotes as the ‘Word of God on High’.

      IGNORE HIM.

    • @zman,
       
      The fact that backwardation remains for gold, even if its price has been up to over $1400/oz, just mean one thing – The holder of physical gold is not releasing it for the current price, because it is not high enough yet. 
       
      The fact that gold is still over & under & over & under $1400/oz means – SOMEONE(s) is keeping the price in that neighborhood. No other explanation needed.

    • Pat, we all follow the market prices of the PM market, this is called living in the here and now, Silver Doctors reports on the paper price on a daily basis, even you have to live with this reality.
      Now if you want to live in your own world and say the paper price is wrong, go ahead and invent your own price discovery, but at the end of the day, no one is going to pay any more for your metals than the market price. I know, you’re never going to sell your metal, so it doesn’t matter, but most of the readers on this site do care about the real price.
      You think the physical price is dictated by the paper market, I think the physical market controls the paper price, and no one can control a physical market.  There is a reason why silver trades at $23 oz today, and it’s not the paper market.
      I think silver will move higher in price if the fundamentals change (surging inflation and velocity of money increasing).

    • zman  … “Now if you want to live in your own world and say the paper price is wrong, go ahead and invent your own price discovery”

      Yeah, I already DID that. I’ve been making my little pitch to the miners to Auction their metals to the global public on some sort of dedicated e-bay platform, rather than ‘sell’ at these rigged futures spot ‘prices’, taking it up the butt all day and night.

      Bay of Pigs

      ‘Kick the ant-hill’ … THAT was good for a chuckle!

  3. I’m looking forward to the collapse so I can start going through my list of I told you so’s, up yours’, and go f**k yourself’s.
     
    Come quickly please. The supply shock from the mining collapse should hopefully manifest itself shortly to help us.

    Note – the US mint cut August sales off last monday, pushing the 625k eagles sold into september. Looks like they’ll continue to play games with the stats.

  4. That is interesting Ranger, been busy working, trying to keep all the fckking parasites happy.  Many of us suspected things would really begin to get interesting this Fall.  For one, lady avatar & I will probably close another checking account.  Cabelas in the NW part of the state has Colts 6920′s on sale for $749.  I was not wanting another AR, much prefer another shotgun.  Hell, I don’t want to buy anything any more but certainly do not want to look back and wish I had.  Damn, we are in one hellofamess.  Dog, don’t worry about zman, he is much smarter than all of us.  He has it figured out, ya know.

    • Sheep,
      You might try to find a M1 Carbine and get a couple of thirty round clips and tape them upside down to one another.
      Really a great medium range (all you really need) weapon! 30 cal, compact and lays down a lot of firepower!

  5. Slight correction to what David David McAlvany said:  backwardation in industrial commodities like oil can go on for a very long time.  Gold, however, is different and it is in the gold market that anything but a day or two of backwardation every now and then is seriously rare.
     

  6. You make the collapse sound as a bad thing, & it is not. A Reset, or a Reformation grasps the concept. In a book available online by James McBride called “The Divine Province,” can help sum it up? We are free men & women, but we need to know how to exercise our rights.

Leave a Reply