Monetary Metals Supply and Demand Report: April 28, 2013

There were no more Dark Cabal “smashdowns” this week. Gold rose $56, which is to say the dollar fell about 0.9mg this week. The gold bugs may be feeling somewhat vindicated, but what is the basis saying? First, here is the graph showing the prices of the metals in dollar terms. There was some up [...]

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7 replies
    • gold777 says:

      help…. i am a person that has a simple mind, i look at this but i just cant get my mind around this (basis-cobasis) thing is there a more simple way to explain it, yes i mean simple please….., (buy now or wait to see what happens ) just being honest to ask. there is so much hype out there. i am on a journey to protect my family from this criminal world, things just do not feel right in the financial world. thank you.

  1. Keith Weiner says:

    monetary: I generate the basis and cobasis

    gold777: You can think of the basis as a measure of gold’s availability to the market. It cuts through all the BS and hype. If the basis is rising, physical gold is becoming available in the market. If the basis is falling, gold is becoming less available. The ultimate scenario proving that is if one must pay $10,000 to buy a physical coin but if one tries to sell a futures contract one cannot get more than $1000.

    • monetary says:

      So you’re taking spot price and future price, computing the average of the two, and plotting the % away from the average of the two that each one is?

      Wonder how it would look if you plotted street price of say a one oz gold coin as well as spot price.

  2. petter_w says:

    How can you distinguish between temporary backwardation and backwardation? The cobasis for both gold and silver seems to be rising and the basis falling and this over several months, that is over several contract rolls.

    Both gold and silver are backwardated – could this be a sign that the futures market is drying up vs. the physical ?

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