TFMR Podcast #40 - Sandeep Jaitly Discusses Gold Backwardation

90

To get more precise information on the subject of backwardation, I figured I'd go straight to the expert.

Sandeep Jaitly has been measuring and studying backwardation in gold and silver for years. To me, he is the foremost expert on the subject so I figured that if there was anyone who could explain the broad ramifications of backwardation to you, it would be Sandeep.

In this podcast, Sandeep discusses:

  • Why backwardation in gold and silver is different from other commodities.
  • How backwardation is measured and his procedure for finding the appropriate data.
  • For how long and to what extreme we are currently seeing backwardation, not only in gold but silver, too.
  • And finally, what precious metal backwardation may signify within the more broad concept of The End of The Great Keynesian Experiment.

Something tells me that you'll find this discussion very interesting and thought-provoking. I look forward to reading your feedback and comments.

TF

  90 Comments

  Refresh
Orange
Mar 3, 2013 - 9:02am

Logging In

Hat tip me if you had trouble logging in. I had to enter my name password and answer the math question 15 times before I was able to get in. I reset Safari, cleared the cache, with no better results. I went out of TFMR a couple of times with no luck, and eventually got in.

SilverSurfers
Feb 28, 2013 - 11:09pm

Back to the Putin Global Plan

some may recall my comments about Putin wanting to make babies and high tech industries in the modern era. My political stuff and Patents prosecuted have been published, world wide. They are pickin my brain .....

https://www.google.ru/patents/US7552160

ok, I will tute my own horn. 56% of all patents filed are allowed.

I worked with the highest tech in country .... for 2 decades .... my success rate was 98%.

get impressed

https://patents.justia.com/agent/derrick-michael-reid

yeap, rumors have been around for awhile .....

Treasury & Mint Sticking Americans with Steel Coinage

Posted by Derrick Michael Reid on Monday, March 16, 2009 11:21:39 AM Charge Boys, and Give'em the Cold Steel

Grandpa, in the late 50s, as I recall well, would each day visit the banks, and get bangs of coins, and he would methodically go through them all, one by one, with a magnified glass, whereat, I learned of little markings like "D" "S" minted on the coins, as they were neatly placed in the blue socketed coin books. But there was one coin of which I will always remember, the 1943 steel penny. I suppose many people today have never even seen one. I have. They are real and do exist. Mostly made of Iron, they are literally dirt cheap to produce, despite a tad of zinc. When base metal prices were high then during WWII and supplies were limited, yet needed for the war effort, the government simply starting minting steel pennies. The government can do and has done whatever it wants to our USA money.

The copper penny came back, and had relative real value to monetized silver. Our coinage money was in intrinsic balanced. We all knew what we had in our pockets and wallets. But then came the 60s, the cost of the Vietnam War and the Great Society and trips to the Moon, and the government stopped minting silver dimes and quarters and halves as the government moved toward decoupling the dollar from silver and gold, violating the constitution and debasing our money, to wage war, social engineer, and impress the Russkies. The government has over spent and debased the dollar, on a power trip extending around the globe. To continue the power trip, the deficits continue and that means continuously debasing the dollar, resulting in staggering inflation at times, with moderate inflation now becoming systemic in the US economy. The systematic debasing of monetized silver and gold through 100 years of inflationary practices for more government control seems as though it will last forever, or until a fatal global collapse of all fiat money. Is there really a zero value of anything? May be not. General Sherman burnt CSA script to keep warm at night as Georgia howled using worthless fiat. Keeping warm on a cold night does has some monetary value, does it not?

The government may not have counted on base metals rising to the highs of late. The copper penny and nickel nickel have survived to this day, but with base metal prices increasing relative to the fiat dollar, the penny and nickel are becoming way over valued to where it may become profitable to hoard pennies and nickels, and effectively take them out of circulation. Something needs to be done now so as to be able to replace these prospective vanishing pennies and nickels which will most certainly vanish from circulation in the near future, simply because they are worth more than 1/100 and 1/20 of a fiat dollar, respectively. Its common "cents".

As the government continues its undisciplined monetary policies, void of monetized silver and gold in circulation, the penny and nickel will go by way of that dinosaur, the silver dime. Sure copper pennies and nickel nickels will be around, if you care to buy them by the bag full for capital gains. It seems clear in the short term, the government will continue to use its no-limit credit card of the bond market to charge more and more debt and continue to debase the dollar, in so doing, shrinking its real value, each day. The penny and nickel in circulation will be history, and very soon, I suspect, and you will know exactly when to start hoarding the penny and nickel, just listen for a treasury hue&cry, "charge boys, and give'em the cold steel".

Derrick
Boswell
Feb 28, 2013 - 3:04pm

Re: Rumors

That "End of the US Penny" story a few months back went the same way. ;-(

Beware of circular reporting.

Just A Regular Guy
Feb 28, 2013 - 6:43am

Great interview

Kudos Mr.Turd!

Visit the FAQ page to learn how to track your last read comment, add images, embed videos, tweets, and animated gifs, and more.

SIlverbee
Feb 28, 2013 - 6:15am

The Apple rumour

Is a great example of the benefits and pitfalls of the Internet. We heard it first, but as it goes viral it will experience the Chinese Whispers affect and be corrupted, elaborated upon and biased. Now if we had not heard it first we might take it as more fact than rumour. Could it not be that other facts or strong rumours we receive could be susceptible to the same premise? I often find the same story at ZH, here, silverdoctors and quoted by experts on podcasts as close to fact, which is exacerbated, especially given the eminence of the story teller.

The internet by its very nature is full of this type of thing and it is very easy to believe so call facts. We here believe we are critical thinkers however, could it be that sometimes our thinking is biased by what we want to know and believe?

SilverSurfers
Feb 28, 2013 - 1:07am

Shock Jock

As you all know, I write shock jock political stuff against the "totalitarian socialistic fascist racist cesspool that is DC"

1) I try to post at watchdog.com re sprout, and watchdog goes down.

2) Personal blog, highlighted at townhall.com goes off line to public view.

3) When I write my missives, I broadcast to 30 news outlets, and always get auto reply mail, thanking me for my messages, BUT NOT NOW, no auto reply from any of them, not even the whitehouse or the GOP.

go figure ......

I have, TPTB dont like me :( geeeezzzz, i ponder why ?????? LOL!!

the emails are directed to the GOP, cc'ing the missives to many, and the prolog is always

"GOP, please kindly send a copy of this to that totalitarian socialitic facist in the Whitehouse. Someone should TAKE HIM OUT for a free lunch."

LOL, yeah better calm it down a little, or TURD goes off line ...... you never know.

====

yes, great podcast turd, and here is why. Turd is able to ask simple concise questions or leads in, and lets the guest talk it out, and so Turd picks his brain for us in a very polite informative way, so we get the real scoop and thinking process of the guest.

Sure glad Turd aint a MADMAX .....

"I found MaxKeiser interview of fekete to be, TO MUCH MAX, and not enough Fekete. The only thing I got out of it, is that Fekete thinks cash price and near cash price bullion spreads, backwardation of the near cash futures, is a leading indicator of bullion moves."

Subscribe or login to read all comments.

Contribute

Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 9/14

9/15 8:30 ET Empire State and Import Price Idx
9/15 9:15 ET Cap Ute and Ind Prod
9/16 8:30 ET Retail Sales
9/16 10:00 ET Business Inventories
9/16 2:00 ET FOMC Fedlines
9/16 2:30 ET Powell Presser
9/17 8:30 ET Philly Fed
9/18 8:30 ET Current Acct Deficit

Key Economic Events Week of 9/7

9/9 10:00 ET JOLTS job openings
9/10 8:30 ET Initial jobless claims
9/10 8:30 ET PPI
9/10 10:00 ET Wholesale Inventories
9/11 8:30 ET CPI
9/11 9:45 ET Core CPI

Key Economic Events Week of 8/31

9/1 9:45 ET Markit Manu Index
9/1 10:00 ET ISM Manu Index
9/1 10:00 ET Construction Spending
9/2 8:15 ET ADP employment
9/2 10:00 ET Goon Williams
9/2 10:00 ET Factory Orders
9/3 8:30 ET Initial jobless claims
9/3 8:30 ET Trade Deficit
9/3 12:30 ET Goon Evans
9/4 8:30 ET BLSBS

Key Economic Events Week of 8/24

8/24 8:30 ET Chicago Fed Idx
8/25 10:00 ET Consumer Confidence
8/26 8:30 ET Durable Goods
8/27 8:30 ET Q2 GDP 2nd guess
8/27 9:10 ET Chief Goon Powell Jackson Hole
8/28 8:30 ET Pers Inc and Consumer Spend
8/28 8:30 ET Core Inflation
8/28 9:45 ET Chicago PMI

Key Economic Events Week of 8/17

8/17 8:30 ET Empire State Manu Idx
8/17 Noon ET Goon Bostic
8/18 8:30 ET Housing Starts
8/19 2:00 pm ET July FOMC minutes
8/20 8:30 ET Jobless claims
8/20 8:30 ET Philly Fed
8/20 10:00 ET LEIII
8/21 9:45 ET Markit flash PMIs July

Key Economic Events Week of 8/10

8/10 10:00 ET Job openings
8/11 8:30 ET Producer Price Idx
8/12 8:30 ET Consumer Price Idx
8/13 8:30 ET Initial jobless claims
8/13 8:30 ET Import Price Idx
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Unit Labor Costs
8/14 8:30 ET Cap Ute and Ind Prod
8/14 10:00 ET Business Inventories

Key Economic Events Week of 8/3

8/3 9:45 ET Markit Manu PMI July
8/3 10:00 ET ISM Manu PMI July
8/3 10:00 ET Construction Spending
8/4 10:00 ET Factory Orders
8/5 8:15 ET ADP employment July
8/5 9:45 ET Markit Service PMI
8/5 10:00 ET ISM Service PMI
8/6 8:30 ET Initial jobless claims
8/7 8:30 ET BLSBS for July
8/7 10:00 ET Wholesale Inventories

Key Economic Events Week of 7/27

7/27 8:30 ET Durable Goods
7/28 9:00 ET Case-Shiller home prices
7/29 8:30 ET Advance trade in goods
7/29 2:00 ET FOMC Fedlines
7/29 2:30 ET CGP presser
7/30 8:30 ET Q2 GDP first guess
7/31 8:30 ET Personal Income and Spending
7/31 8:30 ET Core inflation
7/31 9:45 ET Chicago PMI

Key Economic Events Week of 7/20

7/21 8:30 ET Chicago Fed
7/21 2:00 ET Senate vote on Judy Shelton
7/22 10:00 ET Existing home sales
7/23 8:30 ET Jobless claims
7/23 10:00 ET Leading Economic Indicators
7/24 9:45 ET Markit flash PMIs for July

Key Economic Events Week of 7/13

7/13 11:30 ET Goon Williams speech
7/13 1:00 ET Goon Kaplan speech
7/14 8:30 ET CPI for June
7/14 2:30 ET Goon Bullard speech
7/15 8:30 ET Empire State and Import Price Idx
7/15 9:15 ET Cap Ute and Ind Prod
7/16 8:30 ET Retail Sales and Philly Fed
7/16 11:00 ET Goon Williams again
7/17 8:30 ET Housing Starts and Permits

Recent Comments

by GoldHermit, 4 min 35 sec ago
by cashonly, 32 min 25 sec ago
by Kyjatk, 37 min 48 sec ago
by Smartass, 52 min 49 sec ago

Forum Discussion