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

To: IngotWeTrust who wrote (26550)	1/20/1999 4:13:00 PM
From: long-gone	Read Replies (2) \| Respond to of 116764

Back mid last year was there not more than $1.30 between spot and futures?

To: IngotWeTrust who wrote (26550)	1/20/1999 5:48:00 PM
From: long-gone	Read Replies (1) \| Respond to of 116764

OK, You are the "experienced" person in the futures market. As we are all aware: Backwardation and Contango Backwardation is a market condition where spot rates exceed forward rates. Contango is the opposite condition where forward rates exceed spot rates. Because yield curves are typically upward sloping, the corresponding forward rates are typically contango. In the energy markets, the prevailing condition may reflect supply and demand. For example, if the crude oil market is contango, it may indicate a glut of immediately available supply. Backwardation might indicate an immediate shortage. contingencyanalysis.com Two years ago, I was hearing the term "Contango" applied to the precious metals market. Could it be, that - There has been such a complete turn-over of people in the precious metals market and a down market for so long a time, that everyone has forgotten that the term "Backwardation" could apply to the precious metals? Twenty years ago is a very long time. Some have retired, Others have forgotten(everyone knows the definition of "Long Term" to a commodities trader is = "3 days") ! Note above, they used the example of Oil for backwardation. Does not contango always lead(over a year or so) to backwardation? Is not it true(in theory) that the longer the period of contango the greater the percentage move in backwardation? It has been 20+ years since these were taught to me in college. Thanks Richard rh