Re: Gold Backwardation

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Re: Gold Backwardation

in response to

Re: Gold Backwardian

rookieprospector

posted on Nov 18, 2010 06:21PM

Another reason for backwardation in markets is that product is being bid out of storage - i.e. they need it NOW and are willing (have to) pay a premium for it. This is a sign of supply constraint.

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