What a fascinating and gold bullish article. Since Professor Fekete has a PHD, and studying and teaching on the meaning of basis including contango and backwardation is his main thrust, his dire predictions resulting from the current gold backwardation are worth consideration. Sure, I have considered chaos and the possible death of the dollar, but have felt several more events would have to happen first such as a run on COMEX or hyperinflation or severe shortages, all of which have not happened yet. It appears Professor Fekete can now be linked with Jim Sinclair as in "This is it, and it is now." Since the professor's article was written before todays market, I have tabulated todays closing gold and silver prices. Please note that since these prices are closing prices on a Friday, they should meet Dan Norcini's comments that the compared prices should be taken at the same time.

Gold:

COMEX Spot $754.30

Dec 08 $750.50 (-0.50%, yesterday -2%)

February 09 $752.20 (-0.28%, yesterday -0.29%)

April 09 $753.70 (-0.08%, yesterday none or positive))

Silver:

COMEX Spot $9.46

Dec 08 $9.401

March 09 $9.43

May 09 $9.445

These numbers show that the spot gold backwardation today decreased to the December 08 contract, remained the same in the Feb 09 contract, and appeared for the first time out to the April 09 contract. The main contract with the most open interest is the February 09 contract and its backwardation to the spot price closed today at $-2.10 or -0.28%.