Monetary Metals Supply and Demand Report: 27 Oct, 2013

On Tuesday, US payroll data showed a smaller rise than expected. The prices of the monetary metals shot up on the news. On Friday, CNBC ran a story that reiterated that Quantitative Easing will continue. It was enough to arrest and partially reverse dropping prices. As always, we want to know: what are the fundamentals? [...]

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6 replies
  1. LongInTooth says:

    First I see this “….First, gold is no longer backwardated….”

    Which is followed in the last paragraph by this: “…In case you missed it above, December gold is slightly backwardated….”

    I’m confused.

    Lastly there’s this sentence: “…For an introduction and guide to our concepts and theory, click here….”

    Click where? There’s no active link that I can find.

  2. Keith Weiner says:

    Thanks for the comments.

    bleubelle: When a monetary metal goes from backwardated, to not-backwardated, that is a weakening of the supply and demand fundamentals. It is not a bullish sign.

    knop: above 🙂

    petter: we use a positive cobasis as a stricter definition of backwardation.

    Long: Good catches. I should have edited out the reference to slight backwardation, from last week’s report. The link should be here (

  3. bleubelle says:

    Thank You Keith for your response- I had assumed a weakening of the supply (moving out of backwardation) would in turn cause the price of the metal to surge higher.
    Thanks for the link – appreciate the time you put into responding to our questions.

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