I normally enjoy reading his work. I cant say I understood how gold going into backwardation would affect international trade, as gold isnt part of the settlement system.

I'm a little speptical on this one as too many people have cried wolf too often. We all know gold is undervalued now and longer term gold will be part of the reflation process and gold miners will be a vehicle to get banks lending again. However I will be truly amazed if gold is trading over $1000 by the end of Jan, and if what these guys are saying is anyway true then gold should gap up into 4 digits very quickly.

So if we get a bunch of lame excuses why the market is still range trading in Jan, I think this will say more about the nervous nelly gold writers then about the functioning or not of the gold market