Governments and central banks are losing the war against gold behind the curtains. The recent fall in the price of gold has not taken it out of backwardation but has only intensified it.
This is sending us clear signals that are hidden from the eyes of the majority, who pay attention just to the falling prices and not to something quite more important: the gold Basis and Co-basis.
Backwardation is a symptom of an apparent “shortage” of gold, an abnormality. Gold is not physically “scarce” in the market because its inventories have accumulated for thousands of years. So, this shortage can only be possible if “strong hands”, the ones who keep hoarding it, are every day less willing to sell it at bargain prices in a moment of financial distress, like today.
In other words, this backwardation tends to become permanent and is a sign of distrust in the fiat monetary system. Sooner or later, the collapse of the futures market is unavoidable: the delivery of gold will become impossible.
The warning is very clear: ignore gold, at your own risk.
Submitted by Guillermo Barba:
|click to enlarge|
Let’s make more eyes see, and ears hear. Tomorrow, it could be too late.