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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: GTC Trader who wrote (64246)	2/23/2001 6:35:05 AM
From: long-gone	Respond to of 116752

The loose quick response is that the backwardation we were talking about happens when spot price shoves futures price higher. here's a slide course I found with a quick search. I doubt it with teach anything outside "normal" backwardation & contango. cyberprof.bradley.edu

To: GTC Trader who wrote (64246)	2/23/2001 8:21:50 AM
From: russwinter	Respond to of 116752

Backwardization occurs when spot or very short future maturities trade at higher prices than longer dated maturities. Yesterday we saw the spot (physical trade done as it sounds on the spot, now, pronto) trades oh so briefly over or close to the futures. I consider this bullish given my rather extension arguments here that physical gold is now extremely mismatched with paper gold (futures, derivatives, etc.). If physical shows strength to the point of going into backwardization then it is in short supply, and a squeeze may be developing. The increasing lease rates means essentially the same, but unlike some observers, I believe this is more related to supply of leased gold from CB's to the bullion dealers. I think a credit rerating is underway. For further explanation, glean my prior posts over last month or so.