via INO.com - Oct 2016/Dec 2021 Spread

One idea that I had consistently wrong overal was the notion that gold prices should soon see backwardation if spreads kept narrowing between near futures and the longest dated futures. What happened instead was a forward skew in the bullion markets. The narrowest spread came in about the same time that the gold/silver ratio topped out.

I take this to mean that there's a fair bit of room for price development, without yet seeing backwardation.

http://quotes.ino.com/charting/index.html?s=NYMEX_GC.V16_M21.E&v=d12&t=l&a=0&w=1

http://club.ino.com/join/videos/latest/?vidid=club-mc_update_20160801&mkt=freetrial-blog1pm0801

via Yahoo! Finance - Gold Futures Chain

The gold futures chain remains in Contango.

http://finance.yahoo.com/q/fc?s=GCQ16.CMX

$GVZ Weekly

Gold volatility remains on the decline. It would be ironic that gold prices don't see a mania, but remain in a plateau of low volatility once the bull market is done. The gold price development over the duration of the gold bull market has been a Wave One extension in elliot wave terms. Silver, by comparison did see a Wave Five blow-off, yet people still anticipate making capital gains in silver bullion.

The emphasis on recovery in gold prices is focussed on anticipated capital gains made in a reckless mania, that gold prices could not possibly see anything but a wild mania, especially if interest rates go below zero. I would surmise that should rates go below zero, that banks would become very interested in trading gold, but that the relationship of interest rates vs inflation would be changed, and that the gold market can only provide so much liquidity in trade in a given day, reaching its limits.

It still remains to be seen whether someone attempts to corner the gold market.

http://schrts.co/EV9KH0

via Wall St. Journal - Gold May Not Be A Safe Haven

The discussion around whether gold is a safe haven investment does not include how gold is used in trade on a daily basis or in the futures market. It is a money market that depends on price fluctuations in gold bullion and generates enormous capital on 1% daily changes.

The comments after the article excoriate the Wall St. Journal for being dim-witted, but I doubt if there's a single self-professed 'holder of bullion' that may really be a silver aficionado that is anticipating capital gains by merely hanging onto their coins and bars while the system collapses.

http://blogs.wsj.com/moneybeat/2016/08/03/gold-may-not-be-the-hedge-investors-think-it-is/

-F6