GOLD - PUTTING THE PIECES
OF THE PUZZLE TOGETHER
by Cliff Küle
There has been considerable discussion about backwardation, what it means, did we see it, etc...
I tend to believe Antal E. Fekete's explanation of what it means. It seems to fit what we are seeing right now.
As to whether or not we saw some backwardation recently, I don't know, but the trend seems to be in that direction.
Fekete's words tell us what to look for, and we haven't seen that... yet!
When contango gives way to backwardation in all contract spreads, never again to return, it is a foolproof indication...