"The U.S. Mint ... on September 28, 2008 ... is temporarily halting sales of its popular American Buffalo 24-karat gold coins because it can't keep up with soaring demand as investors seek the safety of gold amid economic turbulence.
Fekete's 'Safe Haven' picks it up again:
"December 2, 2008, was a landmark in the saga of the collapsing international monetary system, yet it did not deserve to be reported in the press: (that) gold went to Backwardation for the first time ever in history.
"The facts are as follows: on December 2nd, at the Comex in New York, December gold futures (last delivery: December 31) were quoted at 1.98% discount to spot, while February gold futures (last delivery: February 27, 2009) were quoted at 0.14% discount to spot. (All percentages annualized.) The condition got worse on December 3rd, when the corresponding figures were 2% and 0.29%. This means that the gold basis has turned negative, and the condition of Backwardation persisted for at least 48 hours."
Which is why I've called this fiasco 'The Last Candango', a lively Spanish-type dance that begins slowly and tenderly with say, a slight upward inflationary trend and then ends in a triple time rhythm marked by the clattering castanet sound of Wall Street golden parachutes snapping open in concert with short, gold, dead cats bouncing.
Is the U.S. Treasury a bubble about to burst? Will the government default?
Stay tuned to another episode of "Freedom is just another word for nothing left to lose".
- Kris Kristofferson, "Me and Bobby McGee."
