Following is a link to Antal Fekete's most recent piece.....

http://www.safehaven.com/article-120...

In it he explains why backwardation is so important and why physical gold may soon be unavailable at any price. (That pretty much means the price will be going up)

If you read this article and get the sense of what he means about "basis" you may be able to figure out what I was saying in my post about how Tyhee could possibly use some of their cash to buy gold from the Comex, taking delivery.

All of the miners should have been doing this all along (buying as the basis approached zero and selling as the basis got to a higher value). If they had done this the gold price as well as their stock price would be considerably higher. If you believe in gold, you certainly shouldn't be offended if a company that plans to produce it kept some of their assets in gold. To think shareholders might be offended is counter-intuitive. As far as offending lenders...those pond scum are basically responsible for the conditions that we all have to live with now. They approached miners with loans and if it appeared the miner would take a loan (in which the lenders got shares) they would short sell the stock as badly as they could covering their short positions with the shares they got for participating in the loan process. They have all but ruined the mining industry with their criminality. Bankers and Gov'ts have little use for gold as it competes with their paper.

Nonetheless, now that "backwardation" has occurred it will be hard to pry gold loose from the hands that hold it. The gov'ts may shift gold around from place to place (e.g. the LME to the Comex etc.) to try to hide the problem but as Zapata George is so fond of saying, "Fundamentals will out."

P.