What’s with #Gold Backwardation? @FTAlphaville’s @IzaKaminska tackles the question

"when regular money rates become negative, however, gold's zero yielding quality is no longer construed as a vice but rather a feature. In such circumstances, holding cash becomes costly while holding gold becomes the opportunity. And it's this feature which triggers not just demand for new sources of gold, but also a backwardation that incentivises those who have previously stashed gold to sell out at a profit."

Read the whole piece here: http://ftalphaville.ft.com/2020/08/05/1596631139000/What-s-with-gold-backwardation-/

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