Usual gold(most commodities) is a couple dollars higher in the futures contract because a buyer or end user that holds the futures contract is paying a couple extra dollars for the storage and carrying costs he is avoiding by not taking delivery until it is needed. Of course that is assuming that futures contracts are being used for their intended purpose of securing supply and fixing costs ahead of time. Futures have now become another casino game in the financial world.Gold in particular, as it is considered currency and is now traded under rules(lol) that apply to fractional reserve requirements. I might be totally off base, however I think the backwardian is caused by excessive demand on the physical because of many reasons. Least of which is an investing public that is finally starting to AWAKEN.

In these rigged markets anything is possible.