Gold goes to backwardation at the COMEX for the first time in history
For the first time in history, on December 2, 2008, Gold December futures traded at a 1.98% discount to spot, while February futures traded at a .14% discount to spot. This phenomenon is known as backwardation, and it is indicative that people do not believe that there will be enough physical gold available for delivery, and therefore they simply are not bidding on it. Demand for gold is increasing heavily as talks about a US auto industry bailout continue and the economy slips into a deeper recession.
Tags: backwardation, bailout, COMEX, gold
