Wednesday, August 8, 2012

Gold Has Entered Into Backwardation

"What we really have to consider is, is gold in backwardation? I think it is, even though the gold forward rate doesn’t show it simply because dollar interest rates are manipulated. I think to a large extent gold interest rates can’t be manipulated any more than they have been.

So the true reflection of the market is you have a backwardation, but it’s not obvious because of the various interest rate manipulations that are going on. That’s very bullish. Whenever you get the metals in backwardation it’s a very bullish situation. I think that’s what we’ve got right here, Eric."

- James Turk via a recent King World News interview, read the full interview here:

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