Goldfinger, Gold iPhone, and Gold Backwardation!

Our society hasn’t lost its obsession with that shinny medal just yet. Despite Gold down –31% from its high, and down –18% for the year, Gold keeps popping up everywhere we look:

First, there was Apple announcing its next phone will be available in Gold (the color, not the metal, we think)

Gold Iphone
Photo Courtesy: USA Today

Then there was a great piece on Slate’s Blog MoneyBox delving into the economic and political undertones of the famous James Bond Classic: Goldfinger. Was this a classic Bond film with the ejector seat car, or a movie about the Bretton-Woods system of semi-fixed exchange rates restricting British citizens from buying and storing large quantities of gold. The piece draws some eerie parallels with today, noting that Labour Party Prime Minister Harold Wilson:

“As an alternative to devaluation, [Wilson] tried to rebalance the current account with a program of fiscal austerity. This merely put more pressure on the domestic economy and did not stop Britain from running a trade deficit that continued to leech the country’s gold reserves and eventually forced a devaluation in 1967.”

Goldfinger

Photo Courtesy: James Bond Wikipedia 

We’ll prefer to remember Goldfinger for the Aston Martin DB5, henchman OddJob, and perhaps the most deliberate use of the double entendre in Bond Girl names; but it’s nice to know there was more to the back story for the movie than just a man who loved Gold.

Finally – there was the following tidbit on Zerohedge recently showing Gold moving into Backwardation where the near price is worth more than distance contracts. This is proof of a conspiracy in the physical Gold world for Zerohedge – where more than a few posts of theirs allege there isn’t enough physical Gold supply to meet all of the Gold investments based on such supply, but we’ll just chalk it up to an interesting move:

Gold Backwardation

Source:  Zerohedge

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Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

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